Improving human development through urbanization, demographic dividend and biomass energy consumption

Abstract

AbstractThe policy debate on the effects of urbanization, demographic dividend and biomass energy consumption on human development in Africa has long suffered from a scarcity of empirical evidence. This study, therefore, explores the relationship between urbanization, demographic dividend, biomass energy consumption and human development (measured by the human development index, human capital, life expectancy and infant mortality) in 33 African countries between 1990 and 2019. We employ Driscoll‐Kraay, instrumental variable and the panel quantile regression methods. We find that an increase in urbanization, demographic dividend and biomass energy consumption leads to a higher level of human development. Accounting for different facets of human development such as education (human capital) and health (life expectancy and infant mortality), the results show that urbanization and biomass energy consumption improve education and health. The results also show that while demographic dividend improves education and infant mortality, its effect on life expectancy is negative and significant. These findings are robust for reliable and consistent policy directives.