TY - JOUR
T1 - Energy demand in Ghana: A disaggregated analysis
AU - Mensah, Justice Tei
AU - Marbuah, George
AU - Amoah, Anthony
PY - 2016/1
Y1 - 2016/1
N2 - This paper presents a comprehensive analysis of energy demand in Ghana by estimating demand functions for key disaggregated energy components including gasoline, diesel, liquefied petroleum gas (LPG), kerosene, biomass, residual fuel oil (RFO) and electricity. Our results show that energy prices, income, urbanization and economic structure are significant demand drivers of the different energy types in Ghana with varying estimated elasticities. Further, there is evidence of high degree of inter-fuel substitution in energy demand in Ghana, particularly from gasoline, diesel and kerosene towards LPG consumption. We recommend, among different policy options, a customization of energy price subsidization policies, especially on LPG, to reduce the unintended beneficiary dilemma or spillover effect of current government policy. Other policies such as intensification of energy conservation programs and market entry of independent power trading companies to enhance energy service delivery through competition are also discussed.
AB - This paper presents a comprehensive analysis of energy demand in Ghana by estimating demand functions for key disaggregated energy components including gasoline, diesel, liquefied petroleum gas (LPG), kerosene, biomass, residual fuel oil (RFO) and electricity. Our results show that energy prices, income, urbanization and economic structure are significant demand drivers of the different energy types in Ghana with varying estimated elasticities. Further, there is evidence of high degree of inter-fuel substitution in energy demand in Ghana, particularly from gasoline, diesel and kerosene towards LPG consumption. We recommend, among different policy options, a customization of energy price subsidization policies, especially on LPG, to reduce the unintended beneficiary dilemma or spillover effect of current government policy. Other policies such as intensification of energy conservation programs and market entry of independent power trading companies to enhance energy service delivery through competition are also discussed.
KW - Energy
KW - Ghana
KW - Disaggregated
KW - Elasticities
U2 - 10.1016/j.rser.2015.09.035
DO - 10.1016/j.rser.2015.09.035
M3 - Article
SN - 1364-0321
VL - 53
SP - 924
EP - 935
JO - Renewable & Sustainable Energy Reviews
JF - Renewable & Sustainable Energy Reviews
ER -