%0 Journal Article
%T Modeling Electricity Demand in the Ecowas Region: New Insights Using Fixed Effect with Driscoll and Kraay Standard Errors
%A Morlai Bangura
%A Olufemi Saibu
%J Modern Economy
%P 67-85
%@ 2152-7261
%D 2024
%I Scientific Research Publishing
%R 10.4236/me.2024.151004
%X Despite the implementation of
various initiatives and reforms aimed at enhancing electricity generation in
the West African sub-region, the provision of reliable and consistent
electricity supply remains a challenge. Consequently, the objective of this
study is to examine the factors that influence the demand for electricity
within the Economic Community of West African S</span><span style=\"font-family:&quot;\">tates (ECOWAS). To achieve this
objective, this study utilised a</span><span style=\"font-family:&quot;\"> balanced panel dataset comprising eleven (11) countries spanning the
period fro</span><span style=\"font-family:&quot;\">m 1980 to 2019. Specifically, three commonly employed static mod</span><span style=\"font-family:&quot;\">els we</span><span style=\"font-family:&quot;\">re utilised, namely pooled
ordinary least squares, fixed effect, a</span><span style=\"font-family:&quot;\">nd random e</span><span style=\"font-family:&quot;\">ffect models. The model
selection criteria confirmed the sup</span><span style=\"font-family:&quot;\">eriority of the fixed effect model. There were
signs of serial correlation, heteroscedasticity, and cross-sectional dependency
in the fixed effect model when it was carefully tested for its robustness. To
address these concerns, the fixed effect regression with Driscoll and Kraay
standard errors technique was utilised. The findings from the study suggest
that economic growth, foreign direct investment, and industrial expansion exert
a significant and positive influence on the demand for electricity in the
ECOWAS region. The study further revealed that there is no statistically
significant impact of population growth a</span><span style=\"font-family:&quot;\">nd trade openness on electricity demand.
Therefore, it i</span><span style=\"font-family:&quot;\">s recommended that the governments within the ECOWAS region intensify
their efforts </span><span style=\"font-family:&quot;\">in implementing reforms aimed at enhancing the capacity an</span><span style=\"font-family:&quot;\">d efficacy of el</span><span style=\"font-family:&quot;\">ectricity generation. Such
endeavours will contribute to t</span><span style=\"font-family:&quot;\">he region¡¯s capacity for long-term economic growth. Furthermore, it is
imperative to im</span><span style=\"font-family:&quot;\">plement policies that are specifically designed to establish </span><span style=\"font-family:&quot;\">a favourable environment for
attracting foreign direct investment and promoting industrialization.
%K Energy
%K Electricity Demand
%K Panel Data
%K Ecowas
%U http://www.scirp.org/journal/PaperInformation.aspx?PaperID=130778