cqvip:The paper is a two-step analysis;it seeks to look at the possible correlation between geothermal generation and the economy,whether there is a bi-directional causality between economic growth and electricity costs.Emphasis is being placed on specific source of energy to show that it being renewable energy and a comparative least cost source of energy,it will have a significant impact on electricity tariff reduction.By use of Vector Error Correction Model and Granger Causality Test on data—for the period ranging from 2007 to 2016,assessment is done to ascertain correlation between electricity tariff,electricity consumption/electricity generation and the various GDP contributory sectors.Results show that reduced electricity tariffs positively impact on economic growth in the manufacturing and construction sectors specifically and geothermal being the comparative least cost energy source that plays a significant role in increasing electricity consumption resulting from reduced costs and consequently economic growth through increase in manufacturing,construction and wholesale and retail industry.Noting the findings,the government should undertake expansion focusing on least cost energy sources—geothermal and other similarly related source of energy,consider price discrimination for the industries in order to boost industrialization and increase electricity access.
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