Abstract
This study tests the convergence in electricity consumption per capita among selected West African countries participating in the integration of their electricity market under the West African Power Pool (WAPP) initiative over the time period of 1971-2014. This study is significant as it helps clarify a concern within the area of energy economics; that is, whether cross-sectional differences in electricity-related measures across countries shrink over time. An answer to this would further help understand how electricity intensity tends to increase in countries that have relatively low electricity intensity for their low-income level. To this end, the study applies panel unit root tests. The results indicate that the per capita electricity consumption is not converging for the selected countries. The findings suggest that the goals of the WAPP initiative have not improved electrification access. Therefore, policymakers need to reassess the programme in order to ensure that its objectives are achieved.
Highlights
During the last decade there has been a surge in the energy literature focusing on understanding whether cross-sectional differences in energy-related measures shrink over time (Borozan, 2017; de Menezes & Houllier, 2016; D. Kim & Jeong, 2016; Le, Chang, & Park, 2017)
This study used the panel unit root testing to test for evidence of convergence
Evidence of convergence in electricity consumption per capita would be consistent with electricity market integration of the West African Power Pool (WAPP), promoting more efficient and more equitable access to electricity within the region
Summary
During the last decade there has been a surge in the energy literature focusing on understanding whether cross-sectional differences in energy-related measures shrink over time (Borozan, 2017; de Menezes & Houllier, 2016; D. Kim & Jeong, 2016; Le, Chang, & Park, 2017). Kim & Jeong, 2016; Le, Chang, & Park, 2017). During the last decade there has been a surge in the energy literature focusing on understanding whether cross-sectional differences in energy-related measures shrink over time For this purpose, the energy literature makes use of electricity consumption per capita as a key indicator, highlighting the differences in the level of electricity consumption across countries. At the same time electricity consumption per capita is as tractable as economic welfare or development, and it serves an important role in the development and evaluation of energy efficiency polices. It is important to improve the understanding of how electricity consumption per capita helps to elucidate the link between growth and electricity usage
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