Regional Sectoral Electricity Consumption Pattern In Northern Ghana: A Logarithmic Mean Divisia Index (LMDI) Approach Analysis
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Date
2021-10
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University Of Ghana
Abstract
Electricity consumption is an essential metric for tracking any country's economic development.
As a result, knowing the methods and factors that influence this consumption is critical for energy
planning and national policy development. This study, therefore, employed the LMDI method to
decompose the factors that influence energy consumption into activity effect, intensity effect, and structural effect considering Northern Ghana’s electricity consumption from 2016 to 2020. The results show that the activity effect strongly influences electricity consumption. Besides, the
consumption dynamics in the various sectors in the regions follow the same trend as the activity
effect is the major driving factor of consumption changes in the non-residential sector.
On the other hand, the intensity effect significantly drives consumption changes in the southern
part of Ghana. Furthermore, the number of subscribers influences the growing trend in electricity
consumption. Therefore, while the study informs policymakers on the factor(s) and the sectors
driving electricity consumption changes, it is recommended the creation and awareness of
electricity efficiency among households and businesses in Ghana should be heightened and
sustained.
Description
MPhil. Operations Management
Keywords
Logarithmic Mean Divisia Index (LMDI), Northern Ghana, Electricity