Energy Consumption in Ghana and the Story of Economic Growth, Industrialization, Trade Openness and Urbanization

Paul Adjei Kwakwa and Solomon Aboagye

Asian Bulletin of Energy Economics and Technology, 2014, vol. 1, issue 1, 1-6

Abstract: Energy has become increasingly very essential for the growth and development of every nation. However, in Ghana there is a shortfall of energy supply amidst growing demand. Using data from the World Bank Indicators, the study therefore investigates the impact of growth, industrialization, urbanization and trade openness on the energy consumption in Ghana. A Johansen cointegration test shows a long-run relationship exist among all the variables. In the short run, trade openness reduces energy consumption, while income and industrialization increases consumption. The coefficient of urbanization was found to be positive though was not significant. In the long-run trade openness and urbanization increased energy consumption while income reduces energy consumption. The error correction term shows an average or moderate speed of adjustment implying that after a shock from previous year; approximately 50% of the disequilibria from the previous year’s shock converge back to the long-run equilibrium in the current year. Conclusions and policy recommendations are provided.

Keywords: Energy demand/consumption; Trade openness; Industrialization; Income; Urbanization; Cointegration (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://asianonlinejournals.com/index.php/ABEE/article/view/713/739 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aoj:abeeat:v:1:y:2014:i:1:p:1-6:id:713

Access Statistics for this article

More articles in Asian Bulletin of Energy Economics and Technology from Asian Online Journal Publishing Group
Bibliographic data for series maintained by Sara Lim ().