Macro, meso, and micro decomposition of energy consumption in Ghana: Role of shocks (local and global) and energy policy interventions

Abstract

This study conducted a macro, meso, and micro index decomposition analysis of energy consumption in Ghana from 2013 to 2020, highlighting the roles of local (e.g., power crisis) and global (e.g., COVID-19) shocks, as well as energy policy initiatives on technical efficiency improvement. We found that technical efficiency improvements varied at different times of the implementation period of energy policy initiatives and across various macro, meso, and micro-sectors of the economy. Technical efficiency improvement varied significantly across these sectors but worsened much more in service sector during periods of local and global shocks. Additionally, the importance of activity, structural, and intensity effects differed over time and across the macro, meso, and micro-sectors of the economy. We discuss the policy implications of these findings.