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Empirical Analysis of Renewable Energy Demand in Ghana with Autometrics

Author

Listed:
  • Ishmael Ackah

    (Department of Economics, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana,
    Policy Unit, Africa Centre for Energy Policy, Accra, Ghana)

  • Mcomari Asomani

    (Policy Unit, Africa Centre for Energy Policy, Accra, Ghana.)

Abstract

Increased investment in renewable energy (RE) has been identified as a potential solution to the intermittent power supply in Ghana. Recently, a RE Act has been passed which has a target of 10% of RE component in Ghana’s energy mix by 2020. Whilst effort is been made to enhance supply through feed in tariffs, education and tax reduction on RE related equipment, there is the need to understand the drivers of RE demand. Due to dearth of studies on RE demand in Ghana, this study seeks to fill both policy and research gap on renewable demand trend in Ghana. In this study, the general unrestricted model through autometrics is used to estimate the determinants of RE demand in Ghana. The results indicate that both economic factors and non-economic affect the demand for RE. In addition, the underlying energy demand trend exhibits energy using behaviour. The study recommends that economic factors such as consumer subsidies should be considered when promoting RE demand.

Suggested Citation

  • 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.
  • Handle: RePEc:eco:journ2:2015-03-15
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    References listed on IDEAS

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    Cited by:

    1. Nagmi Moftah Aimer, 2020. "Renewable energy consumption, financial development and economic growth: Evidence from panel data for the Middle East and North African countries," Economics Bulletin, AccessEcon, vol. 40(3), pages 2058-2072.
    2. Asante, Dennis & He, Zheng & Adjei, Nana Osae & Asante, Bismark, 2020. "Exploring the barriers to renewable energy adoption utilising MULTIMOORA- EDAS method," Energy Policy, Elsevier, vol. 142(C).
    3. Marcin Błażejowski & Jacek Kwiatkowski & Paweł Kufel, 2020. "BACE and BMA Variable Selection and Forecasting for UK Money Demand and Inflation with Gretl," Econometrics, MDPI, Open Access Journal, vol. 8(2), pages 1-29, May.
    4. Trotter, Philipp A. & McManus, Marcelle C. & Maconachie, Roy, 2017. "Electricity planning and implementation in sub-Saharan Africa: A systematic review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 1189-1209.
    5. Ishmael Ackah, 2016. "Policy interventions in renewable energy for sustainable development: is Ghana on the right path to achieve SDG 7?," Working Papers of the African Governance and Development Institute. 16/013, African Governance and Development Institute..

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    More about this item

    Keywords

    Renewable Energy; Energy Consumption; Autometrics; Ghana;
    All these keywords.

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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