Modelling electricity consumption in Ghana: the role of financial development indicators
Access to electricity is touted as one of the ways of reducing poverty and improving the livelihoods of people. However, an increased consumption may also contribute to higher carbon dioxide emissions. While many studies have therefore assessed the determinants of electricity consumption for develop...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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AIMS Press
2022-01-01
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| Series: | Green Finance |
| Subjects: | |
| Online Access: | https://www.aimspress.com/article/doi/10.3934/GF.2022003?viewType=HTML |
| _version_ | 1828346008620236800 |
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| author | Peter Ansu-Mensah Paul Adjei Kwakwa |
| author_facet | Peter Ansu-Mensah Paul Adjei Kwakwa |
| author_sort | Peter Ansu-Mensah |
| collection | DOAJ |
| description | Access to electricity is touted as one of the ways of reducing poverty and improving the livelihoods of people. However, an increased consumption may also contribute to higher carbon dioxide emissions. While many studies have therefore assessed the determinants of electricity consumption for developing countries that have a lower electricity consumption and inadequate supply to meet demand, the effect of financial development on electricity consumption has been mixed. Consequently, this study models electricity consumption in Ghana with special attention on the effect of financial development. The results show that price reduces electricity consumption while income and population density increase consumption of electricity. When financial development is represented by domestic credit to private sector, domestic credit to private sector by banks and broad money supply, the effect is negative on electricity consumption. However, the effect is positive when financial development is represented by foreign direct investment. A financial index constructed from the four indicators shows financial development reduces electricity consumption in Ghana. Among other things the policy implication includes the need to formulate appropriate policy based on a specific indicator for financial development. |
| first_indexed | 2024-04-14T00:19:55Z |
| format | Article |
| id | doaj.art-4a7933dbb93e40e19514debde7148b01 |
| institution | Directory Open Access Journal |
| issn | 2643-1092 |
| language | English |
| last_indexed | 2024-04-14T00:19:55Z |
| publishDate | 2022-01-01 |
| publisher | AIMS Press |
| record_format | Article |
| series | Green Finance |
| spelling | doaj.art-4a7933dbb93e40e19514debde7148b012022-12-22T02:22:59ZengAIMS PressGreen Finance2643-10922022-01-0141547010.3934/GF.2022003Modelling electricity consumption in Ghana: the role of financial development indicatorsPeter Ansu-Mensah0Paul Adjei Kwakwa 11. Faculty of Business and Management Studies, Sunyani Technical University, Sunyani, Ghana2. School of Management Sciences and Law, University of Energy and Natural Resources, Sunyani, GhanaAccess to electricity is touted as one of the ways of reducing poverty and improving the livelihoods of people. However, an increased consumption may also contribute to higher carbon dioxide emissions. While many studies have therefore assessed the determinants of electricity consumption for developing countries that have a lower electricity consumption and inadequate supply to meet demand, the effect of financial development on electricity consumption has been mixed. Consequently, this study models electricity consumption in Ghana with special attention on the effect of financial development. The results show that price reduces electricity consumption while income and population density increase consumption of electricity. When financial development is represented by domestic credit to private sector, domestic credit to private sector by banks and broad money supply, the effect is negative on electricity consumption. However, the effect is positive when financial development is represented by foreign direct investment. A financial index constructed from the four indicators shows financial development reduces electricity consumption in Ghana. Among other things the policy implication includes the need to formulate appropriate policy based on a specific indicator for financial development.https://www.aimspress.com/article/doi/10.3934/GF.2022003?viewType=HTMLelectricity consumptionfinancial developmentincomepricepopulationghana |
| spellingShingle | Peter Ansu-Mensah Paul Adjei Kwakwa Modelling electricity consumption in Ghana: the role of financial development indicators Green Finance electricity consumption financial development income price population ghana |
| title | Modelling electricity consumption in Ghana: the role of financial development indicators |
| title_full | Modelling electricity consumption in Ghana: the role of financial development indicators |
| title_fullStr | Modelling electricity consumption in Ghana: the role of financial development indicators |
| title_full_unstemmed | Modelling electricity consumption in Ghana: the role of financial development indicators |
| title_short | Modelling electricity consumption in Ghana: the role of financial development indicators |
| title_sort | modelling electricity consumption in ghana the role of financial development indicators |
| topic | electricity consumption financial development income price population ghana |
| url | https://www.aimspress.com/article/doi/10.3934/GF.2022003?viewType=HTML |
| work_keys_str_mv | AT peteransumensah modellingelectricityconsumptioninghanatheroleoffinancialdevelopmentindicators AT pauladjeikwakwa modellingelectricityconsumptioninghanatheroleoffinancialdevelopmentindicators |