IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/89408.html
   My bibliography  Save this paper

Do government activities determine electricity consumption in Ghana? An empirical investigation

Author

Listed:
  • ASUAMAH YEBOAH, SAMUEL

Abstract

The paper investigates the long-run relationship between government activities and electricity consumption using annual data collected from world development indicator for a period of 1971 to 2011 in Ghana. The paper adopts the autoregressive distributed lag model of co integration for the estimation. The estimation reveals both short run and long-run relationships between government expenditure and electricity consumption. The findings suggest that government activities explain electricity consumption in Ghana for the period under discussion, and could be considered as a policy variable in the management of electricity consumption.

Suggested Citation

  • Asuamah Yeboah, Samuel, 2018. "Do government activities determine electricity consumption in Ghana? An empirical investigation," MPRA Paper 89408, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:89408
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/89408/1/MPRA_paper_89408.pdf
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    as
    1. Wolde-Rufael, Yemane, 2006. "Electricity consumption and economic growth: a time series experience for 17 African countries," Energy Policy, Elsevier, vol. 34(10), pages 1106-1114, July.
    2. Valerie A. Ramey, 2011. "Identifying Government Spending Shocks: It's all in the Timing," The Quarterly Journal of Economics, Oxford University Press, vol. 126(1), pages 1-50.
    3. Alberini, Anna & Filippini, Massimo, 2011. "Response of residential electricity demand to price: The effect of measurement error," Energy Economics, Elsevier, vol. 33(5), pages 889-895, September.
    4. Burnside, Craig & Eichenbaum, Martin & Fisher, Jonas D. M., 2004. "Fiscal shocks and their consequences," Journal of Economic Theory, Elsevier, vol. 115(1), pages 89-117, March.
    5. Rafindadi, Abdulkadir Abdulrashid & Ozturk, Ilhan, 2016. "Effects of financial development, economic growth and trade on electricity consumption: Evidence from post-Fukushima Japan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 1073-1084.
    6. Fakhri J. Hasanov & Lester C. Hunt & Ceyhun I. Mikayilov, 2016. "Modeling and Forecasting Electricity Demand in Azerbaijan Using Cointegration Techniques," Energies, MDPI, Open Access Journal, vol. 9(12), pages 1-31, December.
    7. Kwiatkowski, Denis & Phillips, Peter C. B. & Schmidt, Peter & Shin, Yongcheol, 1992. "Testing the null hypothesis of stationarity against the alternative of a unit root : How sure are we that economic time series have a unit root?," Journal of Econometrics, Elsevier, vol. 54(1-3), pages 159-178.
    8. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-1072, June.
    9. Athukorala, P.P.A Wasantha & Wilson, Clevo, 2010. "Estimating short and long-term residential demand for electricity: New evidence from Sri Lanka," Energy Economics, Elsevier, vol. 32(Supplemen), pages 34-40, September.
    10. Guido Lorenzoni, 2010. "Optimal Monetary Policy with Uncertain Fundamentals and Dispersed Information ," Review of Economic Studies, Oxford University Press, vol. 77(1), pages 305-338.
    11. Andrew Mountford & Harald Uhlig, 2009. "What are the effects of fiscal policy shocks?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 24(6), pages 960-992.
    12. Ehsan Latif, 2015. "A Panel Data Analysis of the Demand for Electricity in Canada," Economic Papers, The Economic Society of Australia, vol. 34(3), pages 192-205, September.
    13. Loizides, John & Vamvoukas, George, 2005. "Government Expenditure and Economic Growth: Evidence from Trivariate Causality Testing," Journal of Applied Economics, Universidad del CEMA, vol. 8(1), pages 1-28, May.
    14. 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.
    15. Jaunky, V.C., 2007. "Income Elasticities Of Electric Power Consumption: Evidence From African Countries, 1971-2002," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 7(2), pages 25-50.
    16. 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.
    17. repec:gam:jeners:v:10:y:2017:i:11:p:1918-:d:119727 is not listed on IDEAS
    18. repec:bla:opecrv:v:41:y:2017:i:1:p:3-22 is not listed on IDEAS
    19. 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.
    20. Adom, Philip Kofi, 2015. "Asymmetric impacts of the determinants of energy intensity in Nigeria," Energy Economics, Elsevier, vol. 49(C), pages 570-580.
    21. 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.
    22. Adom, Philip K. & Kwakwa, Paul Adjei, 2014. "Effects of changing trade structure and technical characteristics of the manufacturing sector on energy intensity in Ghana," Renewable and Sustainable Energy Reviews, Elsevier, vol. 35(C), pages 475-483.
    23. 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.
    24. Bernstein, Ronald & Madlener, Reinhard, 2011. "Residential Natural Gas Demand Elasticities in OECD Countries: An ARDL Bounds Testing Approach," FCN Working Papers 15/2011, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    25. Olivier Blanchard & Roberto Perotti, 2002. "An Empirical Characterization of the Dynamic Effects of Changes in Government Spending and Taxes on Output," The Quarterly Journal of Economics, Oxford University Press, vol. 117(4), pages 1329-1368.
    26. 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.
    27. Ranjan Kumar Dash & Chandan Sharma, 2008. "Government Expenditure and Economic Growth: Evidence from India," The IUP Journal of Public Finance, IUP Publications, vol. 0(3), pages 60-69, August.
    28. Tenhofen Jörn & Wolff Guntram B. & Heppke-Falk Kirsten H., 2010. "The Macroeconomic Effects of Exogenous Fiscal Policy Shocks in Germany: A Disaggregated SVAR Analysis," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 230(3), pages 328-355, June.
    29. Chang, Yoosoon & Kim, Chang Sik & Miller, J. Isaac & Park, Joon Y. & Park, Sungkeun, 2014. "Time-varying Long-run Income and Output Elasticities of Electricity Demand with an Application to Korea," Energy Economics, Elsevier, vol. 46(C), pages 334-347.
    30. repec:eco:journ2:2017-04-20 is not listed on IDEAS
    31. Obinna Ubani, 2013. "Determinants of the dynamics of electricity consumption in Nigeria," OPEC Energy Review, Organization of the Petroleum Exporting Countries, vol. 37(2), pages 149-161, June.
    32. 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.
    33. Arisoy, Ibrahim & Ozturk, Ilhan, 2014. "Estimating industrial and residential electricity demand in Turkey: A time varying parameter approach," Energy, Elsevier, vol. 66(C), pages 959-964.
    34. Zaman, Khalid & Khan, Muhammad M. & Ahmad, Mehboob & Rustam, Rabiah, 2012. "Determinants of electricity consumption function in Pakistan: Old wine in a new bottle," Energy Policy, Elsevier, vol. 50(C), pages 623-634.
    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. Yeboah Asuamah, Samuel, 2015. "Government activities and fossil fuel consumption in Ghana," MPRA Paper 89549, University Library of Munich, Germany, revised 15 Aug 2018.

    More about this item

    Keywords

    Government expenditures; Electricity consumption; Co-integration; Short run; long run.;

    JEL classification:

    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:pra:mprapa:89408. 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: (Joachim Winter). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    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.