The transition between energy efficient and energy inefficient states in Cameroon

Abstract

I use a two-state (energy efficient/inefficient) Markov-switching dynamic model to study energy efficiency in Cameroon in a novel manner, employing yearly data covering 1971 to 2012. I find that the duration of an energy inefficient state is about twice as long as an energy efficient state, mainly due to fuel subsidies, low income, high corruption, regulatory inefficiencies, poorly developed infrastructure and undeveloped markets. To escape from an energy inefficient state a broad policy overhaul is needed. Trade liberalization and related growth policies together with the removal of fuel subsidies are useful, but insufficient policy measures; the results suggest that they should be combined with structural policies, aiming at institutional structure and investment in infrastructure. (C) 2015 Elsevier B.V. All rights reserved.

Keywords

Energy efficiency; Transition between energy states; Cameroon; Markov-switching dynamic model

Published in

Energy Economics
2016, volume: 54, pages: 248-262
Publisher: ELSEVIER SCIENCE BV

SLU Authors

• Adom, Philip Kofi

  • Department of Forest Economics, Swedish University of Agricultural Sciences
    

Global goals (SDG)

SDG7 Affordable and clean energy
SDG9 Industry, innovation and infrastructure
SDG16 Peace, justice and strong institutions

UKÄ Subject classification

Economics

Publication identifier

• DOI: https://doi.org/10.1016/j.eneco.2015.11.025

Permanent link to this page (URI)

https://res.slu.se/id/publ/83254