Electricity Consumption Determinants and Investment Opportunity: A Prospective Analysis Based on the Context in Côte d’Ivoire — Oak Academic Publishing
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Electricity Consumption Determinants and Investment Opportunity: A Prospective Analysis Based on the Context in Côte d’Ivoire
Department of Economics, Felix Houphouët-Boigny University, Abidjan, Côte d’Ivoire
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Department of Economics, Felix Houphouët-Boigny University, Abidjan, Côte d’Ivoire
1 Department of Economics, Felix Houphouët-Boigny University, Abidjan, Côte d’Ivoire
2 Department of Economics, Felix Houphouët-Boigny University, Abidjan, Côte d’Ivoire
In many countries, governments anticipate energy consumption. In the electricity sector, heavy investments are required for improving and extending infrastructure quality in order to satisfy demand. Therefore, many governments, especially those of developing countries, are soliciting private investments in order to face contemporary challenges. This paper contributes to a scare literature about investment opportunity in the power sector but is relatively abundant about determinant of electricity demand. It aims to examine 1 ) The relationship between private investor and the government ; 2 ) Electricity consumption on the one side and population size and GDP on the other side in Côte d’Ivoire. The analysis commenced by showing how far the return on investment, so the price level, is a determinant factor for the investor’s decision to enter or reinvest in the electricity market. From an empirical point of view, the cointegration test confirmed the used of the Vector Error Correction Model (VECM). It shows a long-run relationship between, electricity consumption and the GDP and population. The Wald test indicates a causal relationship of electricity consumption on GDP. Moreover, an overview of demand forecast let s envisage business opportunities for investors through economic and regulatory perspective suggestions.
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