Energy Efficiency in West Africa Economies: Implication for Sustainable Energy use

Abstract

In recent years, energy efficiency figures prominently in energy policies of African countries. This study analyzes the total‐factor energy efficiency in West Africa economies over the period 1990‐2013 using DEA model. The empirical analysis is carried out in two steps. In the first step, energy efficiency scores are calculated. In the second step, excesses in energy and CO2 and shortfall in GDP are determined. Average energy efficiency scores over the study period showed that the five most energy‐efficient countries are Senegal, Niger, Benin, Burkina Faso, and Ghana, whereas the five least energy‐efficient countries are Guinea, Nigeria, Togo, Mali and Liberia. Energy efficiency scores with and without undesirable output are identical for Ghana, showing that she seem to be the best in sustainable energy utilization. Based on DEA scenarios, we found that, all the countries generate excesses in energy use causing shortfall in GDP. The DEA model highlights that if countries reduced excesses in energy use and CO2 as well as used efficiently capital and labor, they would have increased the GDP. A decrease of energy consumption from traditional biomass and a better exploitation of renewable energy from biomass will adjust energy consumption and improve energy efficiency and environmental quality.