Vol. 1 No. 1 (2014)
Articles

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

Paul Adjei Kwakwa
Presbyterian University College, Ghana Okwahu Campus, Abetifi-Okwahu, Ghana
Solomon Aboagye
Department of Economics, University of Ghana, Legon, Accra

Published 2014-12-01

Statistics
880 Views | Downloads

Keywords

  • Energy demand/consumption, Trade openness, Industrialization, Income, Urbanization, Cointegration

How to Cite

Kwakwa, P. A., & Aboagye, S. (2014). Energy Consumption in Ghana and the Story of Economic Growth, Industrialization, Trade Openness and Urbanization. Asian Bulletin of Energy Economics and Technology, 1(1), 1–6. Retrieved from http://www.asianonlinejournals.com/index.php/ABEE/article/view/713

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.

Downloads

Download data is not yet available.