Munich Personal RePEc Archive

Effect of negative shocks to electricity consumption on negative shocks to economic growth in Benin

Dakpogan, Arnaud and Smit, Eon (2018): Effect of negative shocks to electricity consumption on negative shocks to economic growth in Benin.

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Abstract

The current study used an asymmetric approach to establish that negative shocks to electricity consumption have caused negative shocks to economic growth in Benin over the period 1971-2014. In so doing, it has ascertained the conclusion of the national policy framework for electricity which stipulated that shortages of electricity have impeded economic growth. Benin has encountered several electricity shortages in the 1980s, 1990s, and 2000s. Although the share of electricity consumption in total energy consumption is very low in the country, electricity consumption remains essential for of economic growth because shortages of electricity cause reduction in economic growth. This result has some important policy implications in terms of electricity security in Benin.

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