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Investing in the cheapest form of energy: efficiency practices of SMEs in rural Ghana.

Ackah, Ishmael (2015): Investing in the cheapest form of energy: efficiency practices of SMEs in rural Ghana.

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Abstract

Efficiency has been identified as the cheapest and cleanest source of fuel. Whilst effort has been made in the advanced countries to promote technology and efficiency, little is known about efficiency in emerging economies in Africa. The purpose of this study is to identify the energy efficiency practices of SMEs in rural Ghana and also examine the barriers to energy efficiency practices. First, a descriptive analysis was used to examine the barriers and energy efficiency indicators. Finally, autometrics is used to examine the relationship between energy efficiency and productivity at the aggregate level. The study finds that lack of information on energy efficiency practices is the most important barrier to energy efficiency. On the practices, methods such as putting off electrical appliances when not in use or when closed, using new electrical appliances and using less appliances to achieve the same goal are some of the common ones adopted by SMEs in rural Ghana. The study recommends that the Ghana Energy Commission should intensify its energy efficiency education and extend this to rural areas.

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