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This study examines the effect of finance on energy efficiency in Africa, addressing two fundamental empirical issues in the energy-finance literature (1) simultaneous modelling of efficiency estimates and determinants of efficiency and (2) two-way endogeneity problem with income and financial depth. I apply the endogenous stochastic frontier method. Life expectancy at birth instruments for income while religion, latitude of capital city and legal system origin instrument for financial depth. Estimated efficiency in electricity consumpt
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