An Econometric Investigation of the Determinants of Fossil Fuel Consumption: A Multivariate Approach for Ghana

Samuel Yeboah Asuamah

Business School, Accra Institute of Technology (AIT), Accra, Ghana

Joseph Ohene-Manu

Department of Economics, Kwame Nkrumah University of Science and Technology (KNUST), Kumasi, Ghana

Keywords: Fossil fuel, Consumption determinants, Long run and short run elasticities, Cointegration link, Income, Price, ARDL bound approach, Stability test, Non structural break.


The study examines the long run and short run determinants of fossil fuel consumption in Ghana for 1970-2011 period by using Autoregressive distributed lad model (ARDL). The bound test for cointegration produced no evidence of cointegration among the variables. There are no statistical significant long run and short run parameters for the fossil fuel consumption function for Ghana. The results suggest macro variables such as income, price, trade openness, investment, money supply, and government expenditure do not play observable role in fossil fuel consumption. As such, they could not be relied on as a policy tool to manage fossil fuel consumption. Future study should consider the issue of structural breaks and the direction of causality.


Download data is not yet available.