Drivers of Aggregate Electricity Consumption in Uganda
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Date
2022-08-26
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Makerere University Business School
Abstract
The study examined the drivers of aggregate electricity consumption in Uganda particularly foreign direct investment, real domestic product, population growth rate and price of electricity. The objective was to examine their effect on aggregate electricity consumption and determine which of the drivers of FDI, Population growth rate, GDP, and electricity tariffs/ prices influences aggregate electricity consumption more. The study employed the Autoregressive distributed lag (ARDL) model with structural break in time series data using the Gregory Hansen cointegration test, data used run from the first quarter of 2008 to the fourth quarter of 2019.Findings indicated that there was a structural break in 2016:Q3, further findings reveal that Foreign Direct Investment and Population growth rate have a negative effect on aggregate electricity consumption in Uganda in the long run whereas Gross domestic product and Price of electricity have a positive effect on aggregate electricity consumption in the long run. Findings also reveal real Gross domestic product as the most influential driver of aggregate electricity consumption in Uganda and price of electricity as the least influential driver of aggregate electricity consumption. The study results will guide policy makers and researchers to draw their attention to Gross domestic product, develop or suggest policies aimed at increasing productivity and people’s standards of living as a way of increasing aggregate electricity consumption. The study results will also prompt policy makers and researchers to dig deeper into understanding the drivers of aggregate electricity consumption in Uganda.
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This is a master's thesis.
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Citation
Mukundane, P. (2022) Drivers of Aggregate Electricity Consumption in Uganda. (Unpublished master's dissertation). Makerere University Business School, Kampala, Uganda.