Modelling aggregate domestic electricity demand in Ghana: An autoregressive distributed lag bounds cointegration approach
In spite of the varying supply boosting efforts made by various governments to deal with the existing demand–supply gap in the electricity sector, the incessant growth in aggregate domestic electricity demand has made these efforts futile. As an objective, this paper attempts to identify the factors responsible for the historical growth trends in aggregate domestic electricity demand quantifying their effects both in the short-run and long-run periods using the ARDL Bounds cointegration approach and the sample period 1975 to 2005. In the long-run, real per capita GDP, industry efficiency, structural changes in the economy, and degree of urbanisation are identified as the main driving force behind the historical growth trend in aggregate domestic electricity demand. However, in the short-run, real per capita GDP, industry efficiency, and degree of urbanisation are the main drivers of aggregate domestic electricity demand. Industry efficiency is the only factor that drives aggregate domestic electricity demand downwards. However, the negative efficiency effect is insufficient to have outweighed the positive income, output, and demographic effects, hence the continual growth in aggregate domestic electricity demand. As a policy option, we recommend that appropriate electricity efficiency standards be implemented at the industry level.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kamerschen, David R. & Porter, David V., 2004. "The demand for residential, industrial and total electricity, 1973-1998," Energy Economics, Elsevier, vol. 26(1), pages 87-100, January.
- De Vita, G. & Endresen, K. & Hunt, L.C., 2006.
"An empirical analysis of energy demand in Namibia,"
Elsevier, vol. 34(18), pages 3447-3463, December.
- Glauco De Vita & Klaus Endresen & Lester C Hunt, 2005. "An Empirical Analysis of Energy Demand in Namibia," Surrey Energy Economics Centre (SEEC), School of Economics Discussion Papers (SEEDS) 110, Surrey Energy Economics Centre (SEEC), School of Economics, University of Surrey.
- Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
- Ang, B.W. & Goh, T.N. & Liu, X.Q., 1992. "Residential electricity demand in Singapore," Energy, Elsevier, vol. 17(1), pages 37-46.
- Inglesi, Roula, 2010. "Aggregate electricity demand in South Africa: Conditional forecasts to 2030," Applied Energy, Elsevier, vol. 87(1), pages 197-204, January.
- Paresh Kumar Narayan, 2005. "The saving and investment nexus for China: evidence from cointegration tests," Applied Economics, Taylor & Francis Journals, vol. 37(17), pages 1979-1990.
- Athukorala, P.P.A Wasantha & Wilson, Clevo, 2010.
"Estimating short and long-term residential demand for electricity: New evidence from Sri Lanka,"
Elsevier, vol. 32(Supplemen), pages S34-S40, September.
- Wasantha Athukorala & Clevo Wilson, 2010. "Estimating short and long-term residential demand for electricity: New evidence from Sri Lanka," School of Economics and Finance Discussion Papers and Working Papers Series 254, School of Economics and Finance, Queensland University of Technology.
- M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
- Holtedahl, Pernille & Joutz, Frederick L., 2004. "Residential electricity demand in Taiwan," Energy Economics, Elsevier, vol. 26(2), pages 201-224, March.
- 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.
- Ziramba, Emmanuel, 2008. "The demand for residential electricity in South Africa," Energy Policy, Elsevier, vol. 36(9), pages 3460-3466, September.
- Psiloglou, B.E. & Giannakopoulos, C. & Majithia, S. & Petrakis, M., 2009. "Factors affecting electricity demand in Athens, Greece and London, UK: A comparative assessment," Energy, Elsevier, vol. 34(11), pages 1855-1863.
- Erdogdu, Erkan, 2007.
"Electricity Demand Analysis Using Cointegration and ARIMA Modelling: A case study of Turkey,"
19099, University Library of Munich, Germany.
- 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.
- Halvorsen, Bente & Larsen, Bodil M., 2001. "Norwegian residential electricity demand--a microeconomic assessment of the growth from 1976 to 1993," Energy Policy, Elsevier, vol. 29(3), pages 227-236, February.
- Jin-Ping Huang, 1993. "Electricity consumption and economic growth A case study of China," Energy Policy, Elsevier, vol. 21(6), pages 717-720, June.
- Hondroyiannis, George, 2004. "Estimating residential demand for electricity in Greece," Energy Economics, Elsevier, vol. 26(3), pages 319-334, May.
- Odhiambo, Nicholas M., 2009. "Energy consumption and economic growth nexus in Tanzania: An ARDL bounds testing approach," Energy Policy, Elsevier, vol. 37(2), pages 617-622, February.
- Louw, Kate & Conradie, Beatrice & Howells, Mark & Dekenah, Marcus, 2008. "Determinants of electricity demand for newly electrified low-income African households," Energy Policy, Elsevier, vol. 36(8), pages 2814-2820, August.
When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:42:y:2012:i:c:p:530-537. 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: (Shamier, Wendy)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 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.