Informal economies and energy efficiency: Empirical evidence from African countries
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11690%2F25%3A10502018" target="_blank" >RIV/00216208:11690/25:10502018 - isvavai.cz</a>
Result on the web
<a href="https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=ziBTIj1eQU" target="_blank" >https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=ziBTIj1eQU</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1016/j.rser.2025.115518" target="_blank" >10.1016/j.rser.2025.115518</a>
Alternative languages
Result language
angličtina
Original language name
Informal economies and energy efficiency: Empirical evidence from African countries
Original language description
Pervasive informal economies can significantly hinder efforts to improve energy efficiency. This study investigates the complex relationship between informality and energy efficiency in African countries, focusing on linear, nonlinear, and asymmetric effects. The research aims to clarify how varying levels of informality affect energy efficiency and the intervening roles of foreign direct investment (FDI) and institutional quality. Employing a panel dataset of 46 African countries from 1990 to 2017, the study utilizes Stochastic Frontier Analysis to derive energy efficiency scores. It applies panel autoregressive distributed lag and the dynamic panel threshold models to assess the effects of informality. Findings from the linear model reveal that informality may have some initial beneficial effects on energy efficiency. Further evidence of nonlinearity is strongly supported, showing that informality may improve energy efficiency only up to a threshold of between 41 and 42 % of GDP, beyond which it becomes detrimental to its performance. Similarly, compelling evidence of asymmetric effects is reported: positive and negative shocks have increasing and decreasing effects on energy efficiency, respectively. Additional evidence indicates that FDI lowers energy efficiency, whereas governance quality is associated with improved energy efficiency. Lastly, FDI mitigates the negative effect of informality in line with the halo effect. These results reflect the heterogeneous effects of informality that have been reported by prior studies. Policy recommendations based on these findings are discussed.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
10511 - Environmental sciences (social aspects to be 5.7)
Result continuities
Project
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Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2025
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Renewable and Sustainable Energy Reviews
ISSN
1364-0321
e-ISSN
1879-0690
Volume of the periodical
214
Issue of the periodical within the volume
May 2025
Country of publishing house
US - UNITED STATES
Number of pages
13
Pages from-to
115518
UT code for WoS article
001439643900001
EID of the result in the Scopus database
2-s2.0-85219080804