Codebook: Assignment I

STEP 1: Dataset

After reviewing the various codebook furnished for this course, I settled on the GapMinder Codebook. A data sources started in 2005 holds content relating to economic, social and environmental development at local, national and global levels. Currently, it holds content for about 200 indicators including GDP, Rate of Employment and prevalence of HIV infection among others.

STEP 2:  Topic of Interest I

Economic and Social Development is of interest to me and I believe GapMinder (www.gapminder.org) can assist in my research.
My interest is to ascertain if domestic electricity consumption can be used as a proxy for economic development. Specifically, I will like to answer the question below.

STEP 3: Codebook I

What is the extent of the relation between household electricity consumption("relectricperson") and economic development as measured by GDP("incomeperperson") in Ghana?

My guess is, there is a relation between these two variables but the degree to which they are related is unknown. This "unknown" relationship and its effect will form the basis of my research.

Variable Name	Description of Indicator	Main Source
incomeperperson	2010 Gross Domestic Product per capita in constant 2000 US$. The inflation but not the differences in the cost of living between countries has been taken into account.	World Bank Work  Development Indicators
relectricperperson	2008 residential electricity consumption, per person (kWh) The amount of residential electricity consumption per person during the given year, counted in kilowatt-hours (kWh).	International Energy Agency

STEP 4: Topic of Interest II

The second question that I will like to research is:
To what extent is the availability or lack thereof electricity("relectricperperson") contributing to rural-urban("urbanrate") migration in Ghana?

STEP 5: Codebook II

Variable Name	Description of Indicator	Main Source
relectricperperson	2008 residential electricity consumption, per person (kWh) The amount of residential electricity consumption per person during the given year, counted in kilowatt-hours (kWh).	International Energy Agency
urbanrate	2008 urban population (% of total) Urban population refers to people living in urban areas as defined by national statistical offices (calculated using World Bank population estimates and urban ratios from the United Nations World Urbanization Prospects)	World Bank

STEP 6: Literature Review

Terms used in search at scholar.google.com: economic impact, availability of electricity, economic development
Review of the literature on this study revealed that demand for electricity is a derived one. That is, it is influenced by the following household properties:

• stock of electricity appliances
• size of residence
• intensity with which appliance and electric service are used

Also, in the short-term, changes in income and price does affect electricity consumption by changing the intensity of use of existing stocks of appliances. In the long run, households adjust to the appliance stock and size of residence, primarily in response to changes in income.Residential Demand for Electricity: A Consumer Panel Approach, An Econometric Analysis of Residential Electric Appliance Holdings and Counsuption

This other research delves int the impact of electricity availability or lack thereof on economic development in 17 African countries.  It postulated that availability of electricity is a necessary condition for economic and social development in Africa. This paper tests the long-run and causal relationship between electricity consumption per capita and real gross domestic product(GDP) per capita for 17 countries covering the period 1971 - 2001. Electricity consumption and economic growth: a time series experience for 17 African countries

STEP 7: Hypotheses

1: Economic development(incomeperperson) is positively correlated to electricity/energy(relecticperperson) consumption

2: The abundance of electricity(relecticperperson) in urban areas(urbanrate) is contributing to rural-urban migration.