Modelling renewable energy consumption and economic growth in Uganda
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Date
2024-04Author
Mutumba, Geoffrey S.
Odong, Tomson
Bagire, Vincent
Metadata
Show full item recordAbstract
Back ground: This study models renewable energy consumption and economic growth, with evidence
from Uganda (1982-2018). The hypothesis that explains causality between renewable energy consumption
and economic growth follows the growth, conservation, feedback and neutral.
Methods: The study uses vector error correction model (VECM) and structural vector auto regression
(VAR), within a multivariate data framework. The Pairwise Granger test was specifically used to establish
the direction of causality between variables of study. The Johansen co-integration test was carried out to
ascertain if there exists a long run relationship between renewable, domestic investment, foreign direct
investment and real GDP.
Results: The results support the neutral hypothesis between renewable energy consumption and economic
growth.
Conclusion: The conclusion therefore is a unidirectional relationship running from of renewable energy
consumption to economic growth
Implications/Relevance/Originality /Value: This paper provides insights into how renewable energy
consumption drives economic growth and sustainable development.