Electricity consumption and economic growth in Ghana: how significant are electricity transmission losses?
International Journal of Energy Sector Management
ISSN: 1750-6220
Article publication date: 14 December 2023
Issue publication date: 18 November 2024
Abstract
Purpose
The purpose of this study is to analyze the nonlinear relationship between electricity consumption (EC) and electricity transmission losses (ETL) in Ghana. Also, we examined how ETL moderate the effect of EC on economic growth in Ghana from 1980 to 2021.
Design/methodology/approach
We used timeseries data from 1980 to 2021 within an autoregressive distributed lag framework to analyze the links among ETL, EC and economic growth in Ghana.
Findings
Findings show the existence of an asymmetric long-run relationship between EC and ETL. Also, the negative effects of ETL on EC are bigger in the long run. In addition, ETL and EC combine to reduce economic growth, in the long run, providing evidence for the energy-led growth theory in Ghana. Population and inflation were also found to have a significant effect on economic growth in Ghana.
Originality/value
We examined the nonlinear nexus of EC and ETL, which extant studies have ignored in discussing the link between EC and economic growth. Again, we showed that ETL reduces EC causing a reduction in economic growth.
Keywords
Citation
Osei-Gyebi, S. and Dramani, J.B. (2024), "Electricity consumption and economic growth in Ghana: how significant are electricity transmission losses?", International Journal of Energy Sector Management, Vol. 18 No. 6, pp. 1201-1220. https://doi.org/10.1108/IJESM-05-2023-0008
Publisher
:Emerald Publishing Limited
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