This article estimates the effect of financial development on electricity consumption for economies with above and below mean human capital index in 45 African countries. The study applied the simultaneous system GMM estimator (adjusted for cross-sectional dependence) and the Aiken and West slope difference test. We performed further robustness checks, such as sample sensitivity analysis to address potential outlier problem. The result showed that the total effect of financial development on electricity consumption is negative, but the direct and indirect effects are different.

The growth-induced effects of financial development have been well-established in the empirical literature, as well as the significance of financial development to energy demand behavior. However, the empirical evidence on the relationship between financial development and energy intensity remains sparse in the literature. Given the multifaceted nature of the effects of financial development, the proposed relationship seems a complex one and warrants an empirical investigation.

Abstract

The global increase in renewable energy initiatives has been followed by the need to include the social impact of any project as a core element. Significant challenges for renewable energy development include uncertainty in assessing social impacts at local scales, participation and social acceptance. Multi-criteria decision analysis (MCDA) approaches have been widely used in energy planning to address these challenges. This article reviews how social criteria and participation mechanisms have been incorporated into decision-making processes for renewable energy projects.

Ownership and usage of air conditioners (AC) have increased dramatically in the past few decades as global warming and the increasing occurrence of extreme hot weather have become major concerns. However, there is a lack of household-level studies on the effect of climate change on AC energy consumption and usage patterns, especially for developing countries, which have great potential for AC adoption and usage.

There is an ongoing reform in coal taxation in China, from a quantity-based to a price-based approach. While the coal tax could play an important role in resource conservation and air pollution reduction, its distributional effect is not well studied. This paper investigates the distributional effect of China's coal taxes on households before and after the reform. We find that about 30 percent of rural households and six percent of urban households are directly affected by the coal taxes, and that the directly affected households tend to be poor.