Renewable Energy Consumption and Economic Growth Nexus in Sierra Leone
Keywords:
Renewable Energy, Sustainable Development, Energy Policy, ARDL, Economic Growth, Sierra LeonAbstract
This study investigates the relationship between renewable energy consumption and sustainable economic development in Sierra Leone from 1990 to 2023. Despite the country’s abundant renewable energy potential, access to and integration of these resources remain limited, particularly in sectors essential to rural livelihoods and environmental sustainability. Using the Autoregressive Distributed Lag (ARDL) technique and the Toda-Yamamoto causality tests, the study tests the neutrality hypothesis and examines whether renewable energy investments make a meaningful contribution to sustainable development outcomes. The results reveal no causality between renewable energy use and economic growth, supporting the neutrality hypothesis. However, the findings underscore the need for strategic investment in modern energy infrastructure, rural electrification, and renewable energy technologies to unlock the potential for inclusive and sustainable development. The study concludes with policy recommendations to improve energy access, stimulate green growth, and integrate renewable energy into national development planning
References
Abubakirova, A., Saimagambetova, G., Omarova, A., Saubetova, B., & Taskinbaikyzy, Z. (2025). Relationship between Renewable Energy and Economic Growth in Developed Countries. International Journal of Energy Economics and Policy, 15(1), 233–238. https://doi.org/10.32479/ijeep.17456
Acaravci, A., & Ozturk, I. (2010). CO2 emissions, energy consumption and economic growth in Turkey. Renewable and Sustainable Energy Reviews, 14, 3220–3225. https://doi.org/10.1016/j.rser.2010.07.005
Aditya, I. A., Wijayanto, T., & Hakam, D. F. (2025). Advancing Renewable Energy in Indonesia: A Comprehensive Analysis of Challenges, Opportunities, and Strategic Solutions. Sustainability (Switzerland), 17(5). https://doi.org/10.3390/su17052216
Agbana, J., Abubakar, A., Abdullahi, M. B., Oladipo, O., & Arinze-Emefo, I. (2024). Economic Growth in Emerging Markets: The Influence of Foreign Direct Investment on Renewable Energy. Open Journal of Business and Management, 12(04), 2683–2708. https://doi.org/10.4236/ojbm.2024.124139
Aglanu, L. M. (2016). Diffusion of Renewable Energy Policy Innovations in Ghana. OALib, 03(07), 1–10. https://doi.org/10.4236/oalib.1102644
Aisah, A. N., & Bawono, A. (2023). Relationship between Economic Growth, Renewable Energy, International Trade and Sukuk: A Case Study of 12 Sukuk User Countries. Agregat: Jurnal Ekonomi Dan Bisnis, 7(2), 198–207. https://doi.org/10.22236/agregat_vol7.i1/10140
Anguibi, C. F. C. (2015). An Investigation of the Long-Run and Causal Relationships between Economy Performance, Investment and Port Sector Productivity in Cote d’Ivoire. Open Journal of Social Sciences, 03(04), 29–38. https://doi.org/10.4236/jss.2015.34004
Bank, W. (2015). Sierra Leone Sustainable Energy for All.
Czudaj, L., Shahbaz, M., Khraief, N., & Czudaj, R. L. (2020). Munich Personal RePEc Archive Renewable Energy Consumption-Economic Growth Nexus in G7 Countries: New Evidence from a Nonlinear ARDL Approach.
Eser, A., & Akif, M. (2021). Munich Personal RePEc Archive Renewable, Non-renewable Energy Consumption and Economic Growth Nexus in G7: Fresh Evidence from CS-ARDL.
Esso, J. (2010). The Energy Consumption-Growth Nexus in Seven Sub-Saharan African Countries. Economics Bulletin, 30, 1191–1209.
Ewing, B. T., Sari, R., & Soytas, U. (2007). Disaggregate energy consumption and industrial output in the United States. Energy Policy, 35(2), 1274–1281. https://doi.org/10.1016/j.enpol.2006.03.012
Fotourehchi, Z. (2017). Renewable energy consumption and economic growth: A case study for developing countries. International Journal of Energy Economics and Policy, 7(2), 61–64.
Krumins, J., & Klavins, M. (2022). The Baltic States’ Move toward a Sustainable Energy Future. Energies, 15, 8230. https://doi.org/10.3390/en15218230
Krūmiņš, J., & Kļaviņš, M. (2022). The Baltic States’ Move toward a Sustainable Energy Future. In Energies (Vol. 15, Issue 21). MDPI. https://doi.org/10.3390/en15218230
Leone, S. (2015). Final Draft National Renewable Energy Action Plan (NREAP) Ministry of Energy.
Loesse, J. (2010). The Energy Consumption-Growth Nexus in Seven Sub-Saharan African Countries. In Economics Bulletin (Vol. 30, Issue 2).
Menegaki, A. (2011). Growth and renewable energy in Europe: A random effect model with evidence for neutrality hypothesis. Energy Economics, 33, 257–263. https://doi.org/10.1016/j.eneco.2010.10.004
Mivumbi, M., & Yuan, X. (2021). Environmental Pollution Nexus Economic Growth and Energy Consumption. Modern Economy, 12(04), 677–688. https://doi.org/10.4236/me.2021.124034
Moudene, K., El-Oud, R., Ejbari, R., & Amedjar, A. (2023). Renewable Energy and Economic Growth in Morocco. Journal of Human Resource and Sustainability Studies, 11(02), 401–413. https://doi.org/10.4236/jhrss.2023.112023
Öcal, O., & Aslan, A. (2013). Renewable Energy Consumption-Economic Growth Nexus in Turkey. Renewable and Sustainable Energy Reviews, 28, 494–499. https://doi.org/10.1016/j.rser.2013.08.036
Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289–326. https://doi.org/10.1002/jae.616
Rayhan, A. (2024). Nuclear Power as Renewable Energy: A Comprehensive Analysis. https://doi.org/10.13140/RG.2.2.20985.89447
Sari, R., Ewing, B. T., & Soytas, U. (2008). The relationship between disaggregate energy consumption and industrial production in the United States: An ARDL approach. Energy Economics, 30(5), 2302–2313. https://doi.org/10.1016/j.eneco.2007.10.002
Sheikh, A., & Hassan, O. I. (2023). Impact of Economic Growth, Energy use and Research and Development Expenditure on Carbon Emissions: An Analysis of 29 OECD Countries. International Journal of Energy Economics and Policy, 13(1), 454–464. https://doi.org/10.32479/ijeep.13647
Šimelytė, A., & Dudzevičiūtė, G. (2017, May 23). Consumption of Renewable Energy and Economic Growth. https://doi.org/10.3846/cbme.2017.048
Ümit, A. Ö., & Dağdemir, A. (2025). The Relationship Between Renewable Energy, Economic Growth and Trade Openness: New Evidence for EU Countries. Sosyoekonomi, 33(63), 161–182. https://doi.org/10.17233/sosyoekonomi.2025.01.08
Zarate, J. (2015). World Outlook Energy 2015. In International Energy Agency.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Ishmael Kamara, Indra Gunawan
This work is licensed under a Creative Commons Attribution 4.0 International License.
