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

Yeboah Asuamah, Samuel (2017): A Bivariate Modelling of the Electricity Consumption-Financial Development Nexus for Ghana.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: Electricity consumption, financial development; cointegration; long run
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture ; Natural Resources ; Energy ; Environment ; Other Primary Products; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance; P - Economic Systems > P2 - Socialist Systems and Transitional Economies > P28 - Natural Resources ; Energy ; Environment; P - Economic Systems > P3 - Socialist Institutions and Their Transitions > P34 - Financial Economics; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q42 - Alternative Energy Sources; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q43 - Energy and the Macroeconomy

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Yeboah, A. S. (2017). An econometric modelling of financial development-aggregate energy consumption nexus for Ghana. MPRA Paper No. 76199. Online at https://mpra.ub.uni-muenchen.de/76199/. Retrieved on 23/1/2017.