The study, co-authored by researchers Kareem, Ali and Tursoy from Near East University, delves into the complex dynamics of energy consumption, environmental factors, and economic variables with a focus on South Africa. The research underscores the urgent need to transition towards cleaner, sustainable, and cost-effective alternative fuels, given the significant contribution of fossil fuels to global greenhouse gas emissions.
The investigation specifically examines the impact of oil prices, ecological footprint, banking sector development, and economic growth on energy consumption in South Africa. Through the application of an innovative bootstrap autoregressive distributed lag (ARDL) model, the study dissects the short and long-term relationships between these variables.
Results indicate a noteworthy positive and significant correlation between economic growth and ecological footprint with energy consumption in both temporal domains. The findings suggest that heightened economic growth and improvements in environmental quality lead to increased energy usage within the South African context.
Moreover, the study unravels the nuanced influence of industrial structure, showcasing a positive and significant impact on energy consumption but confined to the short term. On the other hand, oil price shocks exhibit a negative and substantial linkage with energy use, emphasizing that increased oil prices contribute to a reduction in energy consumption in South Africa over both short and long periods.
In light of these insights, the study offers practical policy recommendations to government authorities, policymakers, environmentalists, and stakeholders. The proposed strategies aim to develop an energy framework aligned with sustainable economic growth and environmental preservation. By unraveling the intricate connections between economic indicators, ecological considerations, and energy consumption, this research provides a pragmatic foundation for informed decision-making and effective policy development.
More Information:
https://www.mdpi.com/1996-1073/16/8/3365
