A time series analysis of fossil fuel consumption in Sub-Saharan Africa: evidence from Ghana, Kenya and South Africa

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Paul Adjei Kwakwa
George Adu
Anthony Kofi Osei-Fosu

Abstract

This study investigated the determinants of the rising fossil fuel consumption for three Sub-Saharan African countries - Ghana, Kenya and South Africa - to help manage the rising consumption fossil fuel consumption. The study employed the Fully Modified Ordinary Least Square and Canonical co-integration regression techniques using data from 1975-2013. Among other results, the study revealed that income and urbanization increased fossil fuel consumption for all the countries. Also, while trade reduced fossil fuel consumption for Kenya and South Africa, the opposite was found for Ghana while the efficiency of the service sector reduced fossil fuel consumption for all the countries. The results of the study suggest efforts should be geared towards strengthening the energy efficiency system in each of these countries to help reduce fossil fuel consumption. Also, it is necessary that tariff and non-tariff barriers on products that do not promote energy efficiency is raised and vice versa, inter alia.

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