Journal of Economics and Trade

This study investigates the relationship between energy consumption, labour productivity, economic growth, and poverty in selected West African countries, with emphasis on distributional heterogeneity. The study covered the period of 1990-2024. The motivation for this study stems from persistent poverty crisis in the region despite rising energy use and economic growth, suggesting that while mean-based estimators provide average insights, they may overlook differences driven by initial poverty conditions. Quantile regression addresses this by capturing distribution-specific effects, revealing whether energy interventions are more effective in low-, middle-, or high-poverty contexts. The study employs generalized method of moment (GMM), Panel Nonlinear Autoregressive Distributed Lag (NARDL), and Panel Quantile Regression techniques to capture long-run, asymmetric, and distributional effects. Empirical result showed that across the various estimation methods, renewable energy consumption (RENC) consistently exhibits a negative relationship with poverty, confirming its poverty-reducing role. GMM shows a modest negative effect, while NARDL highlights stronger asymmetric impacts, especially from negative shocks. Quantile regression reveals robust and significant effects across all distributions, with stronger impacts at higher poverty levels. Non-renewable energy exhibits mixed and often insignificant effects, while in some cases worsening poverty outcomes due to inefficiencies and volatility. Economic growth (GDP) shows weak and sometimes non-inclusive effects, indicating that growth does not automatically translate into poverty reduction. Labour productivity demonstrates context-specific impacts, becoming more relevant in certain quantiles and short-run dynamics. The findings further confirm significant asymmetry and heterogeneity in the energy–poverty nexus, supporting the superiority of quantile regression in capturing distributional effects. The study concludes that inclusive energy transitions, productivity enhancement, and targeted pro-poor growth strategies are essential for sustainable poverty reduction in West Africa.