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Short- and Long-Run Analysis of Factors Affecting Electricity Consumption in Sub-Saharan Africa

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  • Michieka, Nyakundi M.

Abstract

This paper explores the causal relationship between electricity consumption, GDP, trade openness, financial development, and industry using a Vector Error Correction Model for five Sub-Saharan countries. Results indicate that in the long run, all series exert an influence on electricity consumption in Cote D’Ivioire and Zambia. Short run estimates reveal causality running from financial development and GDP to electricity consumption in Cote D’Ivioire and South Africa. A modified version of Granger Causality developed by Toda and Yamamoto (1995) found no causality in electric power consumption for Kenya. Since these countries differ economically, politically, and geographically, no universal policy implication can be surmised.

Suggested Citation

  • Michieka, Nyakundi M., 2015. "Short- and Long-Run Analysis of Factors Affecting Electricity Consumption in Sub-Saharan Africa," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205047, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea15:205047
    DOI: 10.22004/ag.econ.205047
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    Cited by:

    1. Sakkarin Nonthapot, 2020. "The Impact of Tourism on Electricity Imports by Thailand from Lao People s Democratic Republic," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 190-194.
    2. Merlin, Matumona Lubabu & Chen, Yinfei, 2021. "Analysis of the factors affecting electricity consumption in DR Congo using fully modified ordinary least square (FMOLS), dynamic ordinary least square (DOLS) and canonical cointegrating regression (C," Energy, Elsevier, vol. 232(C).
    3. Nyakundi M. Michieka, 2015. "Short- and Long-Run Analysis of Factors Affecting Electricity Consumption in Sub-Saharan Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 5(3), pages 639-646.

    More about this item

    Keywords

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    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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