IDEAS home Printed from https://ideas.repec.org/a/aoj/abeeat/2014p1-6.html
   My bibliography  Save this article

Energy consumption in Ghana and the story of economic growth, industrialization, trade openness and urbanization

Author

Listed:
  • Paul Adjei Kwakwa

    (Presbyterian University College, Ghana Okwahu Campus, Abetifi-Okwahu, Ghana)

  • Solomon Aboagye

    (Department of Economics, University of Ghana, Legon, Accra)

Abstract

Energy has become increasingly very essential for the growth and development of every nation. However, in Ghana there is a shortfall of energy supply amidst growing demand. Using data from the World Bank Indicators, the study therefore investigates the impact of growth, industrialization, urbanization and trade openness on the energy consumption in Ghana. A Johansen cointegration test shows a long-run relationship exist among all the variables. In the short run, trade openness reduces energy consumption, while income and industrialization increases consumption. The coefficient of urbanization was found to be positive though was not significant. In the long-run trade openness and urbanization increased energy consumption while income reduces energy consumption. The error correction term shows an average or moderate speed of adjustment implying that after a shock from previous year; approximately 50% of the disequilibria from the previous year’s shock converge back to the long-run equilibrium in the current year. Conclusions and policy recommendations are provided.

Suggested Citation

  • Paul Adjei Kwakwa & Solomon Aboagye, 2014. "Energy consumption in Ghana and the story of economic growth, industrialization, trade openness and urbanization," Asian Bulletin of Energy Economics and Technology, Asian Online Journal Publishing Group, vol. 1(1), pages 1-6.
  • Handle: RePEc:aoj:abeeat:2014:p:1-6
    as

    Download full text from publisher

    File URL: http://www.asianonlinejournals.com/index.php/ABEE/article/download/22/pdf
    Download Restriction: no

    File URL: http://www.asianonlinejournals.com/index.php/ABEE/article/view/22
    Download Restriction: no

    References listed on IDEAS

    as
    1. Philip Kofi Adom, 2013. "Time-varying analysis of aggregate electricity demand in Ghana: a rolling analysis," OPEC Energy Review, Organization of the Petroleum Exporting Countries, vol. 37(1), pages 63-80, March.
    2. MacKinnon, James G & Haug, Alfred A & Michelis, Leo, 1999. "Numerical Distribution Functions of Likelihood Ratio Tests for Cointegration," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 14(5), pages 563-577, Sept.-Oct.
    3. Mensah, Justice Tei & Adu, George, 2015. "An empirical analysis of household energy choice in Ghana," Renewable and Sustainable Energy Reviews, Elsevier, vol. 51(C), pages 1402-1411.
    4. De Vita, G. & Endresen, K. & Hunt, L.C., 2006. "An empirical analysis of energy demand in Namibia," Energy Policy, Elsevier, vol. 34(18), pages 3447-3463, December.
    5. Altinay, Galip, 2007. "Short-run and long-run elasticities of import demand for crude oil in Turkey," Energy Policy, Elsevier, vol. 35(11), pages 5829-5835, November.
    6. Noel Alter & Shabib Haider Syed, 2011. "An Empirical Analysis of Electricity Demand in Pakistan," International Journal of Energy Economics and Policy, Econjournals, vol. 1(4), pages 116-139.
    7. Dees, Stephane & Karadeloglou, Pavlos & Kaufmann, Robert K. & Sanchez, Marcelo, 2007. "Modelling the world oil market: Assessment of a quarterly econometric model," Energy Policy, Elsevier, vol. 35(1), pages 178-191, January.
    8. Adom, Philip Kofi & Bekoe, William & Akoena, Sesi Kutri Komla, 2012. "Modelling aggregate domestic electricity demand in Ghana: An autoregressive distributed lag bounds cointegration approach," Energy Policy, Elsevier, vol. 42(C), pages 530-537.
    9. Paul Adjei Kwakwa & Edward Debrah Wiafe & Hamdiyah Alhassan, 2013. "Households Energy Choice in Ghana," Journal of Empirical Economics, Research Academy of Social Sciences, vol. 1(3), pages 96-103.
    10. Erdogdu, Erkan, 2007. "Electricity demand analysis using cointegration and ARIMA modelling: A case study of Turkey," Energy Policy, Elsevier, vol. 35(2), pages 1129-1146, February.
    11. Paul Adjei Kwakwa, 2012. "Disaggregated Energy Consumption and Economic Growth in Ghana," International Journal of Energy Economics and Policy, Econjournals, vol. 2(1), pages 34-40.
    12. Adom, Philip Kofi & Bekoe, William, 2013. "Modelling electricity demand in Ghana revisited: The role of policy regime changes," Energy Policy, Elsevier, vol. 61(C), pages 42-50.
    13. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
    14. Philip Kofi Adom, 2011. "Electricity Consumption-Economic Growth Nexus: The Ghanaian Case," International Journal of Energy Economics and Policy, Econjournals, vol. 1(1), pages 18-31, June.
    15. Adom, Philip Kofi & Bekoe, William, 2012. "Conditional dynamic forecast of electrical energy consumption requirements in Ghana by 2020: A comparison of ARDL and PAM," Energy, Elsevier, vol. 44(1), pages 367-380.
    16. Ramanathan, R., 1999. "Short- and long-run elasticities of gasoline demand in India: An empirical analysis using cointegration techniques," Energy Economics, Elsevier, vol. 21(4), pages 321-330, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kwakwa, Paul Adjei & Alhassan, Hamdiyah & Adu, George, 2018. "Effect of natural resources extraction on energy consumption and carbon dioxide emission in Ghana," MPRA Paper 85401, University Library of Munich, Germany.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aoj:abeeat:2014:p:1-6. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sara Lim). General contact details of provider: http://www.asianonlinejournals.com/index.php/ABEE .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.