An econometric investigation of the effect of financial development on aggregate, and disaggregate energy consumption: time series assessment for Ghana

Yeboah Asuamah, Samuel (2015): An econometric investigation of the effect of financial development on aggregate, and disaggregate energy consumption: time series assessment for Ghana.

Abstract

The paper has examined both long run and short run link between financial development and energy consumption in Ghana for 1970-2011 period using Autoregressive Distributed Lad Model. The ARDL test results produced significant evidence of cointegration among the variables. There are statistical significant long run and short run effects of financial development on energy consumption. The results seem to suggest that financial development is a key explanatory variable in energy consumption and as such, financial development could be relied on as a policy tool to manage energy consumption. Future research should account for the effect of structural effect and the issues of causality.

• Item Type: MPRA Paper
• Language: English
• Keywords: Financial Development, Fossil fuel consumption, Electricity consumption, Aggregate energy consumption, long run.
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture ; Natural Resources ; Energy ; Environment ; Other Primary Products; P - Economic Systems > P2 - Socialist Systems and Transitional Economies > P28 - Natural Resources ; Energy ; Environment; P - Economic Systems > P4 - Other Economic Systems > P48 - Political Economy ; Legal Institutions ; Property Rights ; Natural Resources ; Energy ; Environment ; Regional Studies; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q40 - General

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