The Relationship Between Congo’s Energy Consumption And Economic Growth And Energy Enterprises Development Policy

Energy plays a key role in the economy from both the demand side and supply side. On the demand side, energy is one of the basic items that a consumer buys to maximize his utility. On the supply side, energy is a key factor of production just as capital, labor, land and materials.. The issue of access to energy is a fundamental challenge in development, because the energy has a special place in the economy because of its characteristics. The energy can be used as a final consumption good (lighting, cooking, heating, air conditioning...) or as a factor of production or well as intermediate consumption. Well as intermediate consumption energy is analyzed as a substitute or as a complement to other factors production (capital and labor). It is complementary to the extent that it is not possible to operate machines without energy, and to the extent that substitutable availability can save the scarce factors of production.Energy is an essential component of economic and social development. According to the theory, the increase in energy consumption is the effect of growth economy. There is a double correlation between economic growth and energy consumption:a correlation in time (the energy increases parallel to the production as measured by Gross Domestic Product) and correlation space (the most developed countries are also those whose energy is higher). Double correlation between the intensity of the energy consumption and the level income itself has several causes.As from the oil crisis of1970s, their effect on the economies has brought to the right the importance of energy as a factor of production beside labor and capital. Energy determines the economic growth of a country and its standards of living. There is thus a causal relationship running from energy to economic growth or vice versa. Although it is well known that there is a strong correlation between energy and economic growth, the issue of causality is still controversial.This paper aims to examine the relationship between energy consumptions and economic growth and to address policy problems on energy consumption in Congo by using data from1998to2011.In the paper, an attempt is made to examine the causal relationship between energy consumption and economy growth by Granger causality.Empirical findings reveal that there is no causality running from energy consumption to economy growth. It is suggested that energy consumption is not stimulates enhanced economic growth in Congo.In second part, this paper analyzes the history, current and future policy of energy companies operated in Congo. Energy management includes planning and operation of energy-related production and consumption units. The energy sector in Congo has suffered setbacks which are largely attributed to ineffective and inefficient management. Accordingly, an important policy implication resulting from this analysis is that government can pursue the conservation energy policies that aim at curtailing energy use for environmental friendly development purposes without creating severe effects on economic growth. The energy should be efficiently allocated into more productive sectors of the economy.