Department of Economics and Energy

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Economic Growth, Urbanization, Electricity Prices and Electricity Consumption in Uganda.
(2023) Mwesigwa, Noa
The Study examines the long-run relationship between economic growth, urbanization and electricity consumption in Uganda while controlling for electricity tariffs. The Study used quarterly time series data from the Electricity Regulatory Authority of Uganda and the World Bank. The Study tests for the unit root and cointegration using Augmented Dickey-Fuller and Johansen cointegration respectively. The existence of a long-run relationship allowed the Study to examine the existence of the series under investigation using vector error correction causality/block exogeneity Wald tests. The Study results show population, urbanization and economic growth have a positive and significant long-run effect on electricity consumption while electricity tariff has a negative and significant effect on electricity consumption. The Study, therefore, recommends that the government through Electricity Regulatory Authority should strive to make electricity affordable by lowing tariffs and allowing the provision for load shifting at peak to off-peak hours by domestic consumers, manufacturers and local small businesses. The Study further recommends that government should boost the purchasing power for both rural and urban people through creating self-help projects and cheap financial credits for capital development.