Asymmetric impact of financial development on renewable energy consumption in Ghana

Kwadwo Boateng Prempeh (), Christian Kyeremeh (), Samuel Yeboah and Felix Kwabena Danso ()
Additional contact information
Kwadwo Boateng Prempeh: Sunyani Technical University
Christian Kyeremeh: Sunyani Technical University
Felix Kwabena Danso: Sunyani Technical University

SN Business & Economics, 2024, vol. 4, issue 9, 1-23

Abstract: Abstract This study investigates the impact of financial development on renewable energy consumption in Ghana, considering the influence of economic growth and energy prices. Employing a nonlinear autoregressive distributed lag (NARDL) approach, we capture the asymmetric effects of both positive and negative shocks in financial development on renewable energy demand from 1990 to 2020. Our findings reveal that positive shocks in financial development significantly increase long-run renewable energy consumption by 0.445%. Concomitantly, adverse shocks in financial development have a substantial negative impact, leading to a long-run decrease in renewable energy consumption by 0.424%. Additionally, the analysis demonstrates that both economic growth and energy prices significantly negatively influence renewable energy consumption. These results suggest that policymakers in Ghana should consider strategies that promote financial development and mitigate the adverse effects of economic growth and energy prices to foster a sustainable transition towards renewable energy.

Keywords: Financial development; Renewable energy consumption; Income; Energy prices; NARDL (search for similar items in EconPapers)
JEL-codes: D12 D53 P48 Q41 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s43546-024-00689-4 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:snbeco:v:4:y:2024:i:9:d:10.1007_s43546-024-00689-4

Ordering information: This journal article can be ordered from
https://www.springer.com/journal/43546

DOI: 10.1007/s43546-024-00689-4

Access Statistics for this article

SN Business & Economics is currently edited by Gino D'Oca

More articles in SN Business & Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().