The Impact of Electricity Price on Economic Growth in South Africa

Authors

  • Hlalefang Bernedict Khobai Nelson Mandela Metropolitan University
  • Gift Mugano
  • Pierre Le Roux

Abstract

This study explores the relationship between electricity prices and economic growth in South Africa within a multivariate framework over the period 1985-2014. The autoregressive distributed lag (ARDL) bounds test is implemented to determine long run relationship among the variables. The findings of the ARDL model suggest that there is a long run relationship between electricity supply, economic growth, electricity prices, trade openness, employment and capital. Specifically, the empirical findings reveal that electricity prices negatively affect economic growth while electricity supply, trade openness, capital and employment have a positive impact on economic growth. These findings bring a fresh perspective for creating electricity policies that will enhance economic growth in South Africa.Keywords: Economic growth, electricity prices, South AfricaJEL Classifications: O13, O4, Q43

Downloads

Download data is not yet available.

Author Biography

Hlalefang Bernedict Khobai, Nelson Mandela Metropolitan University

Economics

Downloads

Published

2017-01-17

How to Cite

Khobai, H. B., Mugano, G., & Le Roux, P. (2017). The Impact of Electricity Price on Economic Growth in South Africa. International Journal of Energy Economics and Policy, 7(1), 108–116. Retrieved from https://mail.econjournals.com/index.php/ijeep/article/view/2977

Issue

Vol. 7 No. 1 (2017)

Section

Articles

License

Submission of an article implies that the work described has not been published previously , that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, will not be published elsewhere in the same form, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication.