Causality between residential electricity consumption and explanatory factors

Abstract

This research adds to the assessment of the causal relationships between residential electricity consumption and its explanatory factors. Johansen cointegration, autoregressive distributed lag model, the vector error correction model, and Wald causality tests are used. In both the short and long run, a unidirectional causality towards electricity consumption is identified. The sustainable development of the electricity sector in Cameroon, as defined by the national development strategy for 2030 and the long-term electricity sector development plan for 2030, requires an increase in GDP per capita, the adoption of a compact less energy-intensive urban model, the strengthening of control over the evolution of the number of subscribers on the distribution networks, and the reduction of CO2 emissions from thermal electricity generation.