Energy consumption, fuel substitution, technical change, and economic growth: Implications for CO2 mitigation in Egypt

Presley K. Wesseh and Boqiang Lin ()

Energy Policy, 2018, vol. 117, issue C, 340-347

Abstract: Energy consumption propels economic growth but the level of CO2 emissions associated with a fossil-dominated energy structure raises concerns for the fight against climate change. To draw consensus, this study develops a translog-causality-based model in order to study causation between electricity, natural gas, petroleum, and economic growth in Egypt. In addition, the models’ results are used to estimate the substitution possibilities between various energy pairs and to subsequently test the CO2 mitigation benefits arising from fuel substitution. Results support a bidirectional relationship between all energy types and economic growth in Egypt and suggest, also, that these energy types are substitutes. Although technical progress is estimated to be a bit slow (varying between 4.5% and 7.5%), there appears to be substantial CO2 emissions mitigation benefits from fuel substitution amounting to reductions in the range of 1.5 and 2.2 million metric tons under a 5% investment scenario and 2.5 and 4.5 million metric tons under a 10% investment scenario. These results have broader implications for energy conservation policies and industrial merger policies in developing countries. Moreover, by studying technical change, insights are provided on future CO2 mitigation potential driven by energy efficiency.

Keywords: Energy consumption; Fuel substitution; Technical change; Mitigation; Economic growth (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301421518301526
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:117:y:2018:i:c:p:340-347

DOI: 10.1016/j.enpol.2018.03.022

Access Statistics for this article

Energy Policy is currently edited by N. France

More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().