An economic assessment of adopting alternative sources of energy by small firms in Kumasi, Ghana
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Date
May, 2016
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Abstract
Access to electricity has been identified as a key ingredient towards the development of every sector of the economy. However, in Ghana due to intermittent supply of electricity many firms do not get the required supply. With demand for electricity expected to be on the ascendency, there is the need to utilize alternative sources of energy in the country in order to ensure regular supply of power to businesses. This study examines the willingness to adopt these alternative sources of energy by small firms using market survey procedure. The hypotheses tests revealed that small firms were willing to adopt alternative electricity sources for their businesses. From the study, it was revealed that profit, and amount paid for electricity consumption significantly influenced willingness to adopt while the number of years firms have been in business did not influence firms’ willingness to adopt. It was also revealed that the average cost that small firms were willing to bear was GH¢ 92 per month for the supply of these electricity sources. It was recommended that the government through the Ghana Energy Commission should provide subsidies or give free installation to firms which are willing to adopt alternative source of electricity as the initial cost of these sources are very expensive.
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A thesis submitted to The Department of Economics, Faculty of Social Sciences in partial fulfillment of the requirement for the award of a Master of Arts Degree in Economics,