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Procyclicality has been discovered in crude oil price shocks on aggregate demand. Most studies have used linear estimation techniques, resulting in the loss of asymmetric correlations. We disaggregate the impact of changes in oil prices into positive and negative shocks on aggregate demand and its components from 1970 to 2015 using the nonlinear ARDL framework. The results show that oil price shocks in Ghana have a long-term beneficial asymmetric impact on aggregate demand and its components. Specifically, a positive change in oil price (0.230) has a greater positive effect on the aggregate demand than a negative effect (-0.009) emanating from a negative change in the oil price shock. Further, the same result was obtained for the components of the aggregate demand with the impact on investment expenditures (0.662) being the greatest. Policymakers should diversify energy demand according to our recommendations. Instead of exporting crude oil, officials should encourage its refinement and consumption. Lastly, we suggest that policymakers hedge and use price-smoothing strategies to reduce oil price volatility. [ABSTRACT FROM AUTHOR]

Highlights • This study examines the factors affecting household energy expenditures in Ghana. • We employ the double-hurdle model to investigate fuel choice and expenditures. • Results show that the factors influencing above two differ. • Households using LPG or charcoal are indifferent to prices of other fuels. • Results suggest a difference in policy response between rural and urban households. Abstract This study examines the factors affecting household energy expenditures in Ghana. We employ the double-hurdle model to investigate whether the factors affecting fuel choice differ from those affecting fuel expenditures. The following results are obtained using a nationwide representative household dataset. First, we show that the factors influencing the household's decision to participate in either the LPG or charcoal market differ from those influencing how much is spent. Second, households that already use and, therefore spend money to acquire LPG or charcoal are indifferent to prices of other fuels. At the same time, households using and spending positive amounts on multiple cooking fuels (charcoal and LPG) are insensitive to the prices of other fuels. Third, although income plays a role in rural and urban residents' expenditures on LPG, it is insignificant in terms of urban residents' spending on charcoal. These findings suggest that different programs and policies may be necessary for (1) households that already use modern cooking fuels and those that do not and (2) households in urban and rural areas. [ABSTRACT FROM AUTHOR]

Ghana's energy intensity trends point to a high energy use necessary to generate a unit of output. The country has also witnessed massive investment in energy infrastructure geared towards meeting its lower middle-income status and achieving universal access to energy. The logical question is: what is the contribution of the current economic and technical infrastructure level to the country's energy intensity? The current study addresses this question by employing the Logarithmic Mean Divisia Index I (LMDI) to decompose energy intensity in Ghana from 2000 to 2020 to examine its trends and sources. The impact of economic-technical factors on aggregate energy intensity in Ghana is then investigated with the aid of the ARDL estimation technique to unearth potential asymmetric and symmetric effects. The decomposition analysis indicates an oscillating pattern in energy intensity in Ghana promoted by structural effect and labour productivity respectively. The results suggest that renewable energy, rural electrification, and digitisation have a direct and secondary long-run asymmetric effect on aggregate energy intensity with labour productivity and household consumption working as the transmission channels. The study recommends the need for government to pursue clean and eco-friendly practices in its economic development agenda for a meaningful reduction in energy intensity. • We examined Ghana's energy intensity trends and decomposed the energy intensity sources using the LMDI 1 method. • We further examined the contribution of economic and technical factors to energy intensity using the linear and nonlinear ARDL. • Energy intensity in Ghana is promoted by the energy cost accrued in value-added production relative to structural and intensity effects. • Renewable energy, rural electrification, and digitisation have a direct and secondary long run asymmetric effect on aggregate energy intensity with labour productivity and household consumption working as the transmission channels. [ABSTRACT FROM AUTHOR]