An empirical analysis of renewable and non-renewable energy resources with emphasis on the oil, natural gas and hydropower industries' impacts on the Tanzanian economy

Energy is essential for economic growth, industrialization, and societal development, and Tanzania's energy sector relies on both non-renewable resources such as oil and natural gas and emerging renewable resources. Ensuring energy sustainability is crucial for meeting current demands while preserving resources for future generations. This research investigates the economic impacts of non-renewable and renewable energy resources in Tanzania, focusing specifically on oil, natural gas, and hydropower. It aims to explore how these energy resources contribute to economic development and to outline the potential for long-term sustainable growth through renewable energy. Advanced econometric methods, including Quantile-Quantile Regression (QQR) and Wavelet Transformation models, are used to analyze how various energy resources affect Tanzania's economic development. QQR captures distributional effects, providing insights into the varied impacts of energy production and consumption across different economic quantiles. Wavelet Transformation models explore temporal and frequency-domain relationships, revealing recurring patterns and time-varying dependencies between energy variables and economic performance. The findings indicate that while oil and natural gas significantly drive economic growth, renewable resources like hydropower offer substantial potential for long-term sustainable development. The results enhance the need for a balanced energy policy that promotes renewable investments, particularly in hydropower, while strategically managing non-renewable resources to support economic stability and growth. Keywords: Economic Growth, Energy Sustainability, Hydropower, Natural Gas, Oil, Quantile-Quantile Regression, Tanzania and Wavelet Transformation