The Nexus Between Energy Efficiency, Renewable Energy Consumption and Environmental Pollution in Tanzania.
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Date
2025-12-08
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Makerere University Business School
Abstract
This study examines the nexus between energy efficiency, renewable energy consumption, and environmental pollution in Tanzania using annual data for 1990–2023 obtained from the U.S. Energy Information Administration and the World Bank World Development Indicators. Energy efficiency is proxied by energy intensity, environmental pollution is measured by carbon dioxide (CO₂) emissions, and renewable energy consumption is measured by total renewable energy consumed. The analysis employs an Autoregressive Distributed Lag (ARDL) framework, grounded in the Kaya Identity and the STIRPAT model, to estimate both short-run and long-run relationships.
The results show that renewable energy consumption significantly reduces energy intensity in the long run, indicating efficiency gains. However, energy efficiency exerts a positive and significant effect on CO₂ emissions in the long run, suggesting a rebound effect, while in the short run it reduces emissions, showing that efficiency policies can deliver quick but short-lived environmental benefits. Renewable energy consumption reduces CO₂ emissions in the long run, confirming its mitigation role, but increases emissions in the short run, implying that the initial transition toward renewables may temporarily raise pollution.
The study concludes that while renewable energy consumption and energy efficiency both contribute to lowering carbon emissions, energy efficiency alone is insufficient and may increase emissions without a cleaner energy mix. It therefore recommends that Tanzania prioritize strong investment in affordable and reliable renewable energy, while aligning efficiency measures with clean energy deployment to ensure a sustainable low-carbon transition.
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This is a master's thesis.
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Citation
Pascal, D. J. (2025) The Nexus Between Energy Efficiency, Renewable Energy Consumption and Environmental Pollution in Tanzania. (Unpublished master's dissertation). Makerere University Business School, Kampala, Uganda.