The Impact of Cross-country Heterogeneity on Consumer Energy Efficiency: Evidence from a Panel of African Countries

Considering the widespread depletion of global energy resources, the efficient use of energy is required to guarantee energy access and reduce energy poverty. To this end, this study investigates the level of residential energy efficiency for 17 African countries during the period 1980-2011. Using the parametric stochastic frontier analysis (SFA), we estimated residential energy demand and energy efficiency. Further, we modelled the impact of cross-country heterogeneity on the level of energy use efficiency. Results indicate an average efficiency level of 70%, implying modest levels of residential energy efficiency across our sampled countries. Moreover, we observed that cross country variation in energy efficiency levels is influenced by national characteristics. Based on our results, we argue that energy policies should be conditional on country specific factors and considerations.