Energy savings in Nigeria. Is there a way of escape from energy inefficiency?
Abstract
This study estimates the transition probabilities for different energy-use states in Nigeria, using the Markov Switching Regression technique. According to the results, both energy-efficient and energy-inefficient states are less persistent, but comparatively, the energy-inefficient state is more persistent. Thus, in Nigeria, it is much difficult to escape from the energy-inefficient state than the energy-efficient state. Several reasons may explain this phenomenon, and they include: inefficient regulatory system; poor institutional structure; high corruption; proliferation of second-hand goods; undeveloped markets; high incidence of poverty, and inefficient pricing in the energy sector. Pricing policies should be combined with institutional improvement and infrastructural development if Nigeria wants to achieve a sustainable energy-efficient state, in the long-term.
- Publication:
-
Renewable and Sustainable Energy Reviews
- Pub Date:
- January 2018
- DOI:
- 10.1016/j.rser.2017.06.048
- Bibcode:
- 2018RSERv..81.2421A
- Keywords:
-
- E32;
- O52;
- Q41;
- Q43;
- Q48;
- Energy efficiency;
- Markov-switching method;
- Transition probabilities;
- Nigeria