Sectorial estimation of the impact of electricity consumption of real output in Ghana

Abstract

The main aims of this study were to determine the conditions that influence electric power consumption in Ghana and also estimate the extent to which electric power consumption impact on the various sectors of the Ghanaian economy. The ordinary least squares method of data estimation technique was used. The models specified were indentified to be good models. This revealed that the major factors that influence electricity consumption in Ghana are population, the size of the Ghanaian economy, foreign inflows, the general price level, and trade. The study also revealed that electric power consumption affected agricultural production in Ghana negatively and the margin of the decrease was 0.0284186. More so, the study identified that electricity consumption had a positive effect on manufacturing sector of the Ghanaian economy though its value was statistically insignificant. The degree of the elasticity was 0.072129. Finally, the study showed that electric power consumption affected the services output negatively. The degree of the effect was 0.0245882. This study strongly concludes that more electric power supply should be allocated to the manufacturing sector of Ghana to promote sustainable economic growth and development.