Abstract:
The purpose of this paper is to review, summarize, and critically assess the academic studies that
have dealt with either the causal relationship between energy consumption and growth or the
determinants of energy demand in South Africa from 2007 and outline recent forecasts for
electricity demand. The results of this review aim to identify gaps in the existing research. From
a policy point of view, the findings of this effort have the potential to inform the relevant
stakeholders to make appropriate interventions to improve the status quo of the energy sector.
The results have indicated that studies examining the causality direction between energy
(electricity) consumption and economic growth have failed to reach a consensus. The main
differences identified were the time periods examined, the econometric approaches, and the
variables included in the estimations. Another potential reason for the results is the availability—
or lack thereof—of data specific for the country. On the other side, the studies looking at the
factor affecting energy (electricity) demand have agreed that economic growth or income or
output are considered significant factors. The role of prices was debatable among different
studies. This has become more apparent when reviewing the few forecasting efforts in the
country that resulted in conflicting results.
