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Effect of negative shocks to electricity consumption on negative shocks to economic growth in Benin

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  • Dakpogan, Arnaud
  • Smit, Eon

Abstract

The current study used an asymmetric approach to establish that negative shocks to electricity consumption have caused negative shocks to economic growth in Benin over the period 1971-2014. In so doing, it has ascertained the conclusion of the national policy framework for electricity which stipulated that shortages of electricity have impeded economic growth. Benin has encountered several electricity shortages in the 1980s, 1990s, and 2000s. Although the share of electricity consumption in total energy consumption is very low in the country, electricity consumption remains essential for of economic growth because shortages of electricity cause reduction in economic growth. This result has some important policy implications in terms of electricity security in Benin.

Suggested Citation

  • Dakpogan, Arnaud & Smit, Eon, 2018. "Effect of negative shocks to electricity consumption on negative shocks to economic growth in Benin," MPRA Paper 89539, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:89539
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    Cited by:

    1. Desire Wade Atchike & Zhen-Yu Zhao & Geriletu Bao, 2020. "The Relationship between Electricity Consumption, Foreign Direct Investment and Economic Growth: Case of Benin," International Journal of Energy Economics and Policy, Econjournals, vol. 10(4), pages 507-515.

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    More about this item

    Keywords

    Asymmetric Causality; Electricity Consumption; Economic Growth; Electricity Shortages.;
    All these keywords.

    JEL classification:

    • 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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