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Modelling Gasoline Demand in Ghana: A Structural Time Series Approach

Author

Listed:
  • Ishmael Ackah

    (Department of Economics, Portsmouth Business School, University of Portsmouth, UK.)

  • Frank Adu

    (Department of Economics, KNUST, Ghana.)

Abstract

Concerns about the role of energy consumption in global warming have led to policy designs that seek to reduce fossil fuel consumption or find a less polluting alternative especiallyfor the transport sector. This study seeks to estimate the elasticities of price, income, education and technology on transport gasoline demand sector inGhana. The Structural Time Series Model reports a short-run price and income elasticities of -0.0088 and 0.713. Total factor productivity is -0.408 whilstthe elasticity for education is 2.33. In the long run, the reported price and income elasticities are -0.065 and 5.129 respectively. The long run elasticityfor productivity is -2.935. The study recommends that in order to enhanceefficiency in gasoline consumption in the transport sector, there should beinvestment in productivity.

Suggested Citation

  • Ishmael Ackah & Frank Adu, 2014. "Modelling Gasoline Demand in Ghana: A Structural Time Series Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 4(1), pages 76-82.
  • Handle: RePEc:eco:journ2:2014-01-8
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    Citations

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    Cited by:

    1. Aliyu Barde Abdullahi, 2014. "Modeling Petroleum Product Demand in Nigeria Using Structural Time Series Model (STSM) Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 4(3), pages 427-441.
    2. Kwakwa, Paul Adjei, 2014. "Energy-growth nexus and energy demand in Ghana: A review of empirical studies," MPRA Paper 54971, University Library of Munich, Germany, revised 01 Apr 2014.
    3. Tehreem Fatima & Enjun Xia & Muhammad Ahad, 2019. "Oil demand forecasting for China: a fresh evidence from structural time series analysis," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 21(3), pages 1205-1224, June.
    4. Jeyhun I. Mikayilov & Shahriyar Mukhtarov & Jeyhun Mammadov, 2020. "Gasoline Demand Elasticities at the Backdrop of Lower Oil Prices: Fuel-Subsidizing Country Case," Energies, MDPI, Open Access Journal, vol. 13(24), pages 1-18, December.
    5. Adom, Philip Kofi & Amakye, Kwaku & Barnor, Charles & Quartey, George & Bekoe, William, 2016. "Shift in demand elasticities, road energy forecast and the persistence profile of shocks," Economic Modelling, Elsevier, vol. 55(C), pages 189-206.
    6. Ishmael Ackah & Frank Adu & Richard Opoku Takyi, 2014. "On The Demand Dynamics of Electricity in Ghana: Do Exogenous Non-Economic Variables Count?," International Journal of Energy Economics and Policy, Econjournals, vol. 4(2), pages 149-153.
    7. Siti Indati Mustapa & Hussain Ali Bekhet, 2015. "Investigating Factors Affecting CO2 Emissions in Malaysian Road Transport Sector," International Journal of Energy Economics and Policy, Econjournals, vol. 5(4), pages 1073-1083.
    8. Ackah, Ishmael & Appiah-Adu, Kwaku & Ahunu, Linda, 2015. "What Factors Drive Energy Consumption in Ghana?," MPRA Paper 66095, University Library of Munich, Germany.
    9. Atalla, Tarek N. & Gasim, Anwar A. & Hunt, Lester C., 2018. "Gasoline demand, pricing policy, and social welfare in Saudi Arabia: A quantitative analysis," Energy Policy, Elsevier, vol. 114(C), pages 123-133.
    10. Ishmael Ackah & Mcomari Asomani, 2015. "Empirical Analysis of Renewable Energy Demand in Ghana with Autometrics," International Journal of Energy Economics and Policy, Econjournals, vol. 5(3), pages 754-758.

    More about this item

    Keywords

    Total Factor Productivity (TFP); Gasoline Demand;

    JEL classification:

    • Q31 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Demand and Supply; Prices
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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