Determinants of Electricity Demand in Cote D’Ivoire, Ghana, Nigeria and Senegal

Abstract

It has been established that a consistent supply of electricity to sectors of an economy is vital for economic growth. Countries in West Africa have not realized their full economic potential due to limited access to electricity. The problem with limited energy consumption has been compounded by an unstable supply of power. In this regard, diverse studies have sought to ascertain the factors that influence the consumption of electricity. However, in West Africa, there are very limited empirical works carried out to establish the determinants of electricity consumption and this has necessitated this study. The pooled OLS method is used to examine the determinant consumption of electricity for the period 1980 to 2018. In addition, the study focuses on four countries in West Africa: Nigeria, Ghana, Cote d’Ivoire and Senegal. The results indicate that gross domestic product, foreign direct investment, trade openness, industry output and population growth show a positive and significant relationship with electricity consumption. However, consumer price index has a negative and significant influence on the quantum of electricity consumed. The study recommends that projects focused to increase electricity generation capacity in West Africa should be encouraged and energy from clean sources should be harnessed to provide electricity.