Increased Fossil Fuel Consumption and Its Impact on Energy Efficiency and Economic Growth

Abstract

Energy efficiency improvement is believed to be an effective means of reducing energy consumption thereby reducing green-house gas emission and as well promoting sustainable economic development. Therefore, ascertaining the energy efficiency level will guide policy makers on the right kind policy intervention that will guarantee energy security, climate change mitigation and sustainable growth and development. The study employed a multivariate regression technique to estimation of the impact of a change in the energy structure on aggregate energy efficiency and economic growth. It was revealed in the study that, though an increase usage of fossil fuel is an important factor input for economic growth, however, it is inimical to the efforts aimed at combating climate change. The study also revealed that the marginal efficiency of the energy inputs is important for ensuring increased output as well as sustainable energy supply. Energy efficiency was seen as a mechanism for improving optimal energy utilization. Therefore, improving the level of energy efficiency will significantly assist in providing clean energy coupled with achieving sustainable development goals. This will benefit the nation in terms of ensuring energy security together with climate change mitigation. Policy makers should also focus more on investing in energy efficiency promoting technologies in order to reduce the per capita energy consumption without compromising the economic output level.

Received: 16 June 2021 / Accepted: 7 November 2021 / Published: 3 January 2022