# Energy Use and Economic Performance Nexus in Sub-Saharan Africa: A Multivariate Analysis

## TL;DR

This study explores how energy use and natural resources affect economic growth in Sub-Saharan Africa, offering insights for sustainable development.

## Contribution

The study provides novel empirical evidence on the complex relationships between energy use, low-carbon energy output, and economic performance in Sub-Saharan Africa.

## Key findings

- Energy use and GDP growth are strongly correlated, with energy use contributing 7.419% to GDP.
- Low-carbon energy output is significantly linked to economic performance, contributing 6.079%.
- Natural gas profit margin has a large impact on economic performance, contributing 67.377%.

## Abstract

Sub-Saharan Africa's energy landscape is complex, with various factors influencing economic growth and development. Understanding the interplay between energy use, economic performance, and natural resources is crucial for sustainable development. This study investigates the relationships between energy use, GDP, low-carbon energy output, natural resources, and economic performance in Sub-Saharan Africa.

This study employed advanced econometric techniques, including generalized linear models, generalized method of moments, and vector error correction models. Data from the Global Economy Database spanning 1990-2024 were analyzed to uncover relationships between energy use, GDP, low-carbon energy output, and natural resources.

The analysis showed significant variations in low-carbon energy output (mean = 68.86 units), natural gas profit margin (mean = $0.10), and oil operating surplus (mean = $3.50). The GLM and GMM estimates revealed significant relationships between energy use and GDP (7.419%), low-carbon energy output (6.079%), natural gas profit margin (67.377%), and oil operating surplus (4.575%). The analysis revealed significant variability in low-carbon energy production, natural gas profitability, and oil operating surpluses. Statistical models showed strong correlations between energy consumption and GDP growth, as well as low-carbon energy output and natural resource utilization.

The study finds complex dynamics between the variables, with both short-term and long-term effects. The research contributes to existing knowledge by providing empirical evidence of the relationships between energy use, GDP, low-carbon energy output, natural resources, and economic performance, offering valuable insights for policymakers and stakeholders seeking to promote sustainable energy use and economic development in Sub-Saharan Africa. This research provides novel insights into the intricate relationships governing Sub-Saharan Africa's energy sector and economic development. The findings offer valuable guidance for policymakers and stakeholders seeking to promote sustainable energy use, economic growth, and environmental stewardship in the region.