Electricity consumption in Egypt: a long‐run analysis of its determinants

Abstract

The study examined the determinants of electricity consumption for the Egyptian economy over the period of 1971–2012. An Engle‐Granger and the Phillips‐Ouliaris tests revealed that a long‐run relationship exists between electricity consumption, price, income, urbanisation, financial development, carbon emission, trade and education. Estimating the effects of these variables on the country's electricity consumption, the Phillips and Hansen (Review of Economic Studies, 57, 1990 and 99) Fully Modified OLS and Park's (Econometrica, 60, and 119) Canonical Cointegrating Regression models were employed. The estimated results showed that income, urbanisation, financial development, trade and education positively affect electricity consumption. While industrialisation had negative effect, price and carbon emissions were found not to have any significant effect on electricity consumption in Egypt. Policy implications based on the results are discussed.

Energy Consumption and Trade Openness Nexus in Egypt: Asymmetry Analysis

“…Ibrahiem [7] reports that FDI is causing to the income and bidirectional causality between renewable electricity consumption and income is also found. Kwakwa [8] articulates that financial development, trade, urbanization and income have positive effects on the electricity consumption. Sharaf [5] could not find the causality between aggregate energy consumption and economic growth.…”

“…Considering the theoretical relationship between energy consumption and trade, it seems important to inquire the effect of trade on the energy consumption of Egypt. Although, Egyptian literature has focused on the effect of economic growth on the total energy consumption [4,5], on the road energy consumption [6] and on the electricity consumption [7,8]. Moreover, some studies also analyze the effect of trade on the electricity consumption [8] and on the CO 2 emissions [9].…”

“…Although, Egyptian literature has focused on the effect of economic growth on the total energy consumption [4,5], on the road energy consumption [6] and on the electricity consumption [7,8]. Moreover, some studies also analyze the effect of trade on the electricity consumption [8] and on the CO 2 emissions [9]. In the present line of art, no single study has tried to investigate the effect of trade openness on the total energy consumption of Egypt and this present study is trying to fill this gap.…”

The Demand for Electricity Consumption in Turkey

“…On the other hand, industrialisation had negative effect on electricity consumption. No significant effect on electricity consumption in Egypt were found the variables price and carbon emissions (Kwakwa, 2017).…”

Analysis of the drivers of Ghana's energy demand change using the Laspeyres index method of decomposition: Q‐effect, I‐effect and S‐effect

“…Therefore, the absence of energy through supply constraint can stifle economic development. Energy is needed for both economic and non-economic activities such as the maintenance of law and order and ensuring stability (Ackah et al, 2016;Kolawole et al, 2017;Kwakwa, 2017). From a purely economic perspective, one can argue that reliable and sustainable supply of energy makes possible the production of all goods services as well as the development of economic infrastructure (GWPRA final report, 2010 andEshun andAmoako-Tuffour, 2016;Mensah et al, 2016;Ackah, 2015 andAckah andKizys, 2015).…”