Determinants of electricity demand in Ghana: the role of power crises

The crucial role of electricity in prosecuting the development agenda of economies is widely known. Yet some key variables are lacking in the assessment of electricity demand determinants. One such variable is power crises. This study re-visits the discussion by investigating the role of power crises on electricity demand. We employ data from 1980 to 2018 to examine how power crises in general and in particular the 2012–2015 severe power crisis in Ghana impacts electricity consumption. Using various econometric techniques, we find that power crises have adverse effects on electricity demand in the long run. The 2012–2015 episode of power crisis in particular, has potentially led to consumers reconsidering their sources of energy by reducing electricity demand in the long term.