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A Bivariate Modelling of the Electricity Consumption-Financial Development Nexus for Ghana

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  • Yeboah Asuamah, Samuel

Abstract

The current study modelled the long run and short run links between financial developments and disaggregate energy consumption (electricity consumption) in Ghana for the period 1970 to 2011 using Autoregressive Distributed Lad Model (ARDL). The findings of the study on the cointegration test indicate significant evidence of cointegration between electricity consumption and financial development. The findings seem to suggest that financial development is a key explanatory variable in electricity consumption management in order to attain sustainable energy consumption and economic growth. The issues of structural breaks in unit root and direction of causality should be consider in future studies.

Suggested Citation

  • Yeboah Asuamah, Samuel, 2017. "A Bivariate Modelling of the Electricity Consumption-Financial Development Nexus for Ghana," MPRA Paper 76390, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:76390
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    References listed on IDEAS

    as
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    3. repec:rri:wpaper:201007 is not listed on IDEAS
    4. Sadorsky, Perry, 2010. "The impact of financial development on energy consumption in emerging economies," Energy Policy, Elsevier, vol. 38(5), pages 2528-2535, May.
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    6. Kahsai, Mulugeta S. & Nondo, Chali & Schaeffer, Peter V. & Gebremedhin, Tesfa G., 2012. "Income level and the energy consumption–GDP nexus: Evidence from Sub-Saharan Africa," Energy Economics, Elsevier, vol. 34(3), pages 739-746.
    7. Sadorsky, Perry, 2011. "Financial development and energy consumption in Central and Eastern European frontier economies," Energy Policy, Elsevier, vol. 39(2), pages 999-1006, February.
    8. Yeboah Asuamah, Samuel, 2017. "An econometric modelling of financial development-aggregate energy consumption nexus for Ghana," MPRA Paper 76199, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Electricity consumption; financial development; cointegration; long run;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • P34 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Finance
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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