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Determinants of Electricity Demand in Cote D’Ivoire, Ghana, Nigeria and Senegal

Author

Listed:
  • Horace Koranteng Nkansah

    (Electricity Company of Ghana, Accra P.O. Box 2394, Ghana)

  • Shafic Suleman

    (Institute for Oil and Gas Studies, University of Cape Coast, Cape Coast Private Mall Box, Ghana)

  • Ishmael Ackah

    (Department of Economics, School of Liberal Arts and Social Sciences, Ghana Institute of Management and Public Administration, Achimota P.O. Box AH50, Ghana)

  • Benjamin Ashitey Amarh

    (Supercargo Logistics Company Limited, Tema Manhean P.O. Box TT228, Ghana)

  • Dominic Eduah

    (Ghana National Petroleum Corporation Foundation, Takoradi P.O. Box AX147, Ghana)

  • John Abdulai Jinapor

    (Department of Economics, School of Liberal Arts and Social Sciences, Ghana Institute of Management and Public Administration, Achimota P.O. Box AH50, Ghana)

Abstract

It has been established that a consistent supply of electricity to sectors of an economy is vital for economic growth. Countries in West Africa have not realized their full economic potential due to limited access to electricity. The problem with limited energy consumption has been compounded by an unstable supply of power. In this regard, diverse studies have sought to ascertain the factors that influence the consumption of electricity. However, in West Africa, there are very limited empirical works carried out to establish the determinants of electricity consumption and this has necessitated this study. The pooled OLS method is used to examine the determinant consumption of electricity for the period 1980 to 2018. In addition, the study focuses on four countries in West Africa: Nigeria, Ghana, Cote d’Ivoire and Senegal. The results indicate that gross domestic product, foreign direct investment, trade openness, industry output and population growth show a positive and significant relationship with electricity consumption. However, consumer price index has a negative and significant influence on the quantum of electricity consumed. The study recommends that projects focused to increase electricity generation capacity in West Africa should be encouraged and energy from clean sources should be harnessed to provide electricity.

Suggested Citation

  • Horace Koranteng Nkansah & Shafic Suleman & Ishmael Ackah & Benjamin Ashitey Amarh & Dominic Eduah & John Abdulai Jinapor, 2022. "Determinants of Electricity Demand in Cote D’Ivoire, Ghana, Nigeria and Senegal," Energies, MDPI, vol. 15(14), pages 1-18, July.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:14:p:4998-:d:858539
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