Economic and Environmental Challenges of Energy Transition Within the Economic Community of West African States

Abstract

The energy transition is pivotal for tackling energy insecurity, poverty, and climate change, yet its economic, energy security (ES), and energy efficiency (EE) impacts remain underexplored in developing regions like ECOWAS. This dissertation uses a multidimensional approach to assess renewable energy (RE) adoption, energy efficiency investments, and macroeconomic energy policies in Togo and ECOWAS, employing dynamic DEA, ARDL models, and a dynamic CGE model on data from 2000-2021. Results show low average EE (0.58) in ECOWAS, but RE use, especially hydropower, solar PV, and biogas, enhances ES and EE long-term. Cabo Verde leads in EE, while Togo lags with 0.36, highlighting the need for targeted policies. In Togo’s Centrale region, household data reveal that RE adoption boosts both monetary and non-monetary EE investments, influenced by life satisfaction, environmental attitudes, and socio-demographics. Incentives promoting joint RE and EE adoption can accelerate net-zero-energy buildings and sustainability. At the macro level, CGE analysis using Togo’s 2018 SAM shows that R&D investment yields high returns through innovation and productivity gains, while infrastructure investment boosts energy reliability and industrial output, albeit with higher capital needs. Combined strategies drive GDP growth, government revenues, and household savings, though disparities remain in agriculture and informal sectors. Overall, integrated micro and macro policies promoting RE, EE, and strategic investment are key to strengthening ES, economic resilience, and sustainability in Togo and ECOWAS.