Abstract:
The move towards lower greenhouses gases (GHGs) emissions as a solution to
mitigate climate change is not costless. Focusing on Togolese economy, we
assessed in this article the role played by the shift to renewable energy consumption
path in the search for higher economic growth. Based on the Auto-
Regressive Distributed Lagged (ARDL) model and with the help of time series
data that cover the period 1983-2012, our estimates indicate that the effects
of higher renewable energy consumption on per capita economic growth
varies depending on time horizon. A 1% increase of renewable energy consumption
reduces per capita economic growth by 2.33% in the short run while
it boosts economic growth by 1.22% in the long run. These findings are partly
explained by the high technological rigidity of the country. The message to be
sold to policy makers is that switching from fossil energy technology to technology
based on renewable energy is an expensive and time consuming
process which is economically efficient only in the long run. Consequently,
the country might need relatively considerable time to fully shift to a cleaner
path in terms of carbon emissions mitigation. Thus, the country move towards
lower GHGs emissions must be tactically managed and done progressively.
