Energy consumption in Ethiopia has been the lowest compared to several developing countries. The country needs to diversify its energy sector and develop other energy sources such as wind, geothermal and solar. The present energy mix greatly increases vulnerability to climate change and the poorest segment of the population is the most vulnerable. Recognizing that formulation of sound economic development and environmental sustainability policy needs knowing the relationship among energy use, economic growth and environmental quality. This paper provides a comprehensive review of “Interaction among Energy Consumption, Growth and Environment in Ethiopian Economy”. Finally, this paper helps the researchers as well as the government officials to find pin point unforeseen issues that need to be considered while planning development policy regarding energy along with proposing recommendations.
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