Determinants of electricity consumption in South Africa: Insights from linear and nonlinear modeling approaches

Purpose: This study investigates the determinants of electricity consumption in South Africa, focusing on economic, demographic, and energy-related factors from 1980 to 2023. Methodology: The study employs linear models (Dynamic Ordinary Least Squares and Canonical Cointegrating Regression) and a...

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Main Author: Nyiko Worship Hlongwane
Format: Article
Language:English
Published: Centre of Sociological Research 2025-06-01
Series:Economics, Management and Sustainability
Subjects:
Online Access:https://jems.sciview.net/index.php/jems/article/view/218
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author Nyiko Worship Hlongwane
author_facet Nyiko Worship Hlongwane
author_sort Nyiko Worship Hlongwane
collection DOAJ
description Purpose: This study investigates the determinants of electricity consumption in South Africa, focusing on economic, demographic, and energy-related factors from 1980 to 2023. Methodology: The study employs linear models (Dynamic Ordinary Least Squares and Canonical Cointegrating Regression) and a nonlinear Threshold Autoregressive (TAR) model to analyze the relationships between electricity consumption and its determinants. Results: Economic growth, electricity prices, and income per capita are found to be positive determinants of electricity consumption, while population growth and inflation exhibit negative relationships. The TAR model reveals asymmetric effects of these determinants across different income regimes. Theoretical contribution: This study extends the literature on electricity consumption determinants in developing countries by incorporating both linear and nonlinear modeling approaches, providing a more comprehensive understanding of the complex relationships involved. Practical implications: The findings inform policymakers and energy stakeholders in South Africa on effective strategies for managing electricity demand, promoting energy efficiency, and addressing the ongoing challenges in the electricity sector. Sustainable Development Goals (SDGs): SDG 7: Affordable and Clean Energy; SDG 9: Industry, Innovation and Infrastructure
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issn 2520-6303
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publishDate 2025-06-01
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series Economics, Management and Sustainability
spelling doaj-art-9676e24e8e8e4fb4a3d4f9a8a2a3fbbb2025-08-20T03:25:16ZengCentre of Sociological ResearchEconomics, Management and Sustainability2520-63032025-06-0110110.14254/jems.2025.10-1.1Determinants of electricity consumption in South Africa: Insights from linear and nonlinear modeling approachesNyiko Worship Hlongwane0Sol Plaatje University, 10 Jan Smuts Blvd, Civic Centre, Kimberley, 8300, South Africa Purpose: This study investigates the determinants of electricity consumption in South Africa, focusing on economic, demographic, and energy-related factors from 1980 to 2023. Methodology: The study employs linear models (Dynamic Ordinary Least Squares and Canonical Cointegrating Regression) and a nonlinear Threshold Autoregressive (TAR) model to analyze the relationships between electricity consumption and its determinants. Results: Economic growth, electricity prices, and income per capita are found to be positive determinants of electricity consumption, while population growth and inflation exhibit negative relationships. The TAR model reveals asymmetric effects of these determinants across different income regimes. Theoretical contribution: This study extends the literature on electricity consumption determinants in developing countries by incorporating both linear and nonlinear modeling approaches, providing a more comprehensive understanding of the complex relationships involved. Practical implications: The findings inform policymakers and energy stakeholders in South Africa on effective strategies for managing electricity demand, promoting energy efficiency, and addressing the ongoing challenges in the electricity sector. Sustainable Development Goals (SDGs): SDG 7: Affordable and Clean Energy; SDG 9: Industry, Innovation and Infrastructure https://jems.sciview.net/index.php/jems/article/view/218Electricity consumptionDeterminatsSouth AfricaDOLS and CCRTARdynamic ordinary least squares
spellingShingle Nyiko Worship Hlongwane
Determinants of electricity consumption in South Africa: Insights from linear and nonlinear modeling approaches
Economics, Management and Sustainability
Electricity consumption
Determinats
South Africa
DOLS and CCR
TAR
dynamic ordinary least squares
title Determinants of electricity consumption in South Africa: Insights from linear and nonlinear modeling approaches
title_full Determinants of electricity consumption in South Africa: Insights from linear and nonlinear modeling approaches
title_fullStr Determinants of electricity consumption in South Africa: Insights from linear and nonlinear modeling approaches
title_full_unstemmed Determinants of electricity consumption in South Africa: Insights from linear and nonlinear modeling approaches
title_short Determinants of electricity consumption in South Africa: Insights from linear and nonlinear modeling approaches
title_sort determinants of electricity consumption in south africa insights from linear and nonlinear modeling approaches
topic Electricity consumption
Determinats
South Africa
DOLS and CCR
TAR
dynamic ordinary least squares
url https://jems.sciview.net/index.php/jems/article/view/218
work_keys_str_mv AT nyikoworshiphlongwane determinantsofelectricityconsumptioninsouthafricainsightsfromlinearandnonlinearmodelingapproaches