Renewable energy development in Ghana: Beyond potentials and commitment.

Considering the significance of renewable energy in the sustainable energy future discussion, it is important to understand its influencing factors in order to draw result implications for policy formulation. This study examines these influencing factors for Ghana in the context of an unimpressive renewable electricity scale-up amid the potentials and commitment. It proceeds to forecast the trend of renewable energy fifteen years after the sample period. The results, based on the application of the Vector Error Correction Model and Johansen cointegration technique, on a dataset covering 1980 to 2015, shows that Ghana's renewable electricity is mainly driven by foreign direct investment and trade openness, with real GDP per capita being inconsequential. What's more, both financial development and fossil fuel consumption undermine renewable energy development in Ghana. The dynamic forecast reveals an uninspiring future for renewable electricity, as generation will continue to plummet if conditions remain the same. In light of the findings, we recommend determinant-based policies anchored on the intentional handling of the appraised factors. One key contribution of this study is embodied in the fact that it makes the first empirical attempt in examining the determinants of renewable energy in Ghana. • The influencing factors of renewable energy is examined for Ghana. • Foreign direct investment and trade openness drive renewable energy. • Real GDP per capita plays an inconsequential role in renewable development. • A dynamic forecast reveals an uninspiring future of renewable energy. • Determinant-oriented policies are needed for Ghana's renewable energy development. [ABSTRACT FROM AUTHOR]