Ishmael Ackah

On the Relationship between Energy Consumption, Productivity and Economic Growth: Evidence from Algeria, Ghana, Nigeria and South Africa

It has been suggested that Africa’s growth is principally driven by natural resource rents. This is at variance with the growth in countries such as Korea and Taiwan where productivity has been identified as the main driver. In this study, the effect of energy consumption, investment, productivity on per capita growth in oil producing African countries is examined by employing a dynamic simultaneous panel data model. The simultaneous panel data model is able to examine the three-way causal relationship between energy consumption, productivity and economic growth. The results confirm the importance of income, productivity, price and investment influence the demand for renewable end non-renewable energy. The study recommends that there should be investment in productivity to enhance economic growth and minimize energy consumption.

Predictors of Energy Demand in Ghana

Whilst most countries have drafted energy policies, the desired goals of these policies are not met. One reason may be the failure to distinguish between renewable and non-energy. The purpose of this study is to estimate the impact of economic and non-economic factors on renewable and non-renewable energy demand. The Structural Time Series Model is applied to renewable studies for the first time. The findings indicate that productivity growth and income are the major drivers of renewable and non-renewable energy consumption in Ghana. It is recommended that there should be more investments in productivity to help control non-renewable energy demand.

Analysis of the drivers of Ghana's energy demand change using the Laspeyres index method of decomposition: Q-effect, I-effect and S-effect

Since independence, Ghana has experienced four major power crises as a result of the low water level in the hydro dams to generate the required amount of power for the country as well as limited and expensive supply of crude oil and gas. These energy supply constraints make it imperative for the country to rely on demand‐side management policies to address the energy crisis of the country. However, demand‐side management policies that are applied in generic terms without knowing the exact cause are likely to fail. This study therefore decomposes the factors that influence energy consumption into activity effect, intensity effect and structural effect, so that policymakers will know which factor(s) and also the sectors of the economy that are responsible for the large increases in energy consumption. This way, policymakers will apply the appropriate demand‐side management policy to a particular factor(s) and the sectors causing the increase to get the desired results. The study finds that activity effect is the main driver of energy consumption in Ghana.

Accounting for the effect of exogenous non-Economic variables on natural gas demand in oil producing African countries

With less than 50% of the population of Sub-Saharan Africa having access to modern forms of energy and the desire to minimize the impact of energy consumption on the environment, there is a need to invest in an energy source that is affordable, available and environmentally clean. Natural gas is therefore the preferred choice of energy since it has minimum impact on the environment among the fossil fuels and is relatively affordable. In this study, the generalized methods of moments (GMM), a dynamic panel two stage least squares and the general unrestricted model (GUM) through AutometricsTM are employed to estimate the demand for natural gas in oil producing African countries. The GUM suggests that oil producing African countries have been consuming excessive natural gas that seems to offset improved technical efficiency of appliances. The study finds that both economic and technical factors are important drivers of natural gas consumption. In particular, output exerts a positive and significant influence on natural gas demand, whereas energy price and energy resource depletion have a negative and significant effect. It is recommended that energy efficiency measures should be implemented in these countries.

Modelling Gasoline and Gasoil Consumption and Its Impact on the Environment in Ghana.

The study models the consumption of the two most consumed petroleum products in Ghana namely; gasoline and gasoil. Descriptive analyses and the Structural Time Series Model (STSM), is used as the main estimation method because of its ability to account for structural dynamics in the economy, technical efficiency and non-economic factors which may impact the consumption of gasoline and gasoil. The impact of some economic and non-economic factors on the consumption of these products are estimated coupled with the extent to which these factors impact the environment. A counter-intuitive gasoline income elasticity of -0.34 and -0.24 for both the short and long run are obtained due to consumer’s sensitivity to changes in gasoline prices especially, those in the lower income bracket, hence a shift to less expensive fuels. Also, a short and long run gasoil price elasticity of 0.22 and 0.27 respectively are obtained. Using the Structural Time Series Analyzer, (STAMP) carbon emissions, gasoline and gasoil consumption are forecasted for the next 10 years. The forecasts show an increase in carbon emissions, gasoline and gasoil consumption. Among the numerous recommendations include public efficiency education and a removal of gasoil subsidy in other to raise enough revenue to correct the social cost associated with its use and also to discourage its consumption.

Inflation Dynamics in Pre and Post Deregulation Era in Ghana: Do Petroleum Prices Have Any Influence?

The study looks at the impact of price of petroleum prices on inflation in the Ghanaian economy in the pre and post deregulation era and associated direction of causality as well as the extent of pass through of high international petroleum products price to the domestic retail market. An ARDL model was applied on time series monthly data of various petroleum fuel prices as well as exchange rate.A pass-through formula use by Baig et al, (2007) was also applied. The results reveal that changes in LPG, Kerosene and premium prices have marginal impact on inflation. The pass through analysis revealed Ghana has not pass through more than 50% of increase price of international or import petroleum product of gasoline, kerosene and LPG to the ordinary consumers in the period of the study and this was lower in the post deregulation than pre deregulation. The study therefore recommends full deregulation to continue since it favours lower pass through of fuel price increase in the world market to ordinary consumers whiles may consider gasoline and premium price increase at the expense of kerosene and liquefied petroleum gas price if inflation is to be shielded from fuel price increase.

Analysis OF Energy Efficiency Practices of SMEs in Ghana: An application of Product Generational Dematerialisation

Reducing the amount of energy used in producing a given output is a cost-effective way of tackling global warming. In addition, energy efficiency promotes energy security and saves cost. This study is structured in three parts. First, the energy efficiency practices of small and medium scale enterprises in rural Ghana are investigated. Second, the study applies the Product Generational Dematerialisation method to examine the energy efficiency consumption of electricity and fossil fuels in Ghana. Finally, the general unrestricted model (GUM) is applied to energy consumption in Ghana. The results reveal that reduction in energy consumption among SMEs can be attributed mostly to blackouts and not efficiency as indicated by 72% of the respondents. Further, all three models confirmed that the consumption of energy has not been efficient. Further, productivity was found to be a major driver of energy efficiency. The study recommends public education and the use of new appliances (‘not second hand’) to save energy.

To Toss a Coin or Shake a Hand: An Overview of Renewable Energy Interventions and Procurement in selected African Countries

Open and competitive bidding process (toss a coin) promotes transparency, efficiency and cost reduction as compared to direct negotiations (shake a hand). This paper provides an overview of renewable energy interventions in Angola, Algeria, Cote Dvoire, Ghana and Nigeria. Further, best practices in Germany and South Africa are discussed. It was discovered that, apart from South Africa, most countries in Sub-Saharan Africa uses direct negotiations and feed-in-tariff which has contributed to high cost of renewables. The study recommends that countries should build tendering capacity, put in place simple but robust tendering process and research to identify their renewable energy potential to procure new renewable energy capacity through open and competitive bidding process.

Policy Interventions in Renewable Energy for Sustainable Development: Is Ghana on the Right Path to Achieve SDG 7?

Goal 7 of the Sustainable Development Goals seeks to ensure universal access to affordable, reliable and modern energy services and increase substantially the share of renewable energy in the global energy mix by 2030. This target provides an opportunity as well as a challenge to African countries including Ghana. Indeed, the Ghana Energy Commission estimates that Ghana has about 34 potential hydro sites and enjoys about 330 days of sunshine annually. For instance, the three Northern regions, Volta and northern parts of Brong Ahafo have radiation levels with monthly average of between 4.0 and 6.5kWh/m2/day. These hydro and solar resources, coupled with abundant waste, wind potential of about 2000 MW and tidal potential can make Ghana a net exporter of power when the needed investment is provided. This paper examines the policy interventions in renewable energy in Ghana over the past 20 years. It also includes a review of the literature on the relationship between renewable energy investment and sustainable development and provides policy recommendations to fast-track renewable energy technology deployment in Ghana.

Will the Anchor Hold? An Overview of the Financial Performance of the Electricity Company of Ghana (ECG) from 2009 to 2012

Ghana has been plagued with Power Crisis for the past three years. In the mix of discussions on the energy challenges that Ghana has been confronted with over the years is the level of efficiency of its sole electricity distribution organisation; the Electricity Company of Ghana Limited (ECG). Whiles some experts have called for the contracting of the management of the ECG in order to make it much more efficient and profitable, others have advised that the company should be totally privatised. Proponents of the latter stance argue that this would enable the ECG run more efficiently and attract the necessary investments which would employ efficient technologies in the distribution of power for industry and households. This feat is necessary especially considering that Ghana has committed to universal access to electricity in year 2020. This paper focuses on analysing the financial performance of the Electricity Company of Ghana from 2009 to 2012 by the use of financial ratios. In nutshell, results from the ratios are used to advise on the best ways to make the ECG an efficient organisation in delivering on its core mandate to the citizenry of Ghana.