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An econometric analysis of domestic fuel consumption in Ghana: Implications for poverty reduction
Authors: Alhassan Abdul-Wakeel Karakara, and Isaac Dasmani
Source: Cogent Social Sciences, 5(1); DOI: 10.1080/23311886.2019.1697499
Topic(s): Household solid fuel use
Country: Africa
Published: NOV 2019
Abstract: The study looks at the determinants of household energy consumption and how that relates to general poverty and energy poverty. It extends the Multidimensional Energy Poverty Index (MEPI) by estimating the rural-urban differentials in MEPI. The study employed multinomial logistic regression on household adoption of energy for cooking and lighting. The Ghana Demographic and Health Survey—GDHS 2014 data were used for the regression and three waves (2003, 2008 and 2014) of the data were used to estimate the MEPI as well as the rural-urban contributions to the MEPI over time. The paper provides empirical insights that household energy consumption is affected by socioeconomic variables and rural households are more deprived than urban households in terms of access to and use of modern energy. The most popular energy for cooking is wood and main electricity is the most popular energy for lighting. The wealth status of household, nature of residence (rural or urban) and the size of the household are key socioeconomic variables that affect energy consumption. An estimation of the MEPI showed that it has been declining from a severely deprived energy poverty rate in 2003 to a moderately deprived energy poverty rate in 2014. Also, rural homes (57%) are more energy poor than urban (43%) households. The study includes implications for the provision of clean and better energy sources for household consumption policies. This study fulfills an identified need to look at general poverty in relation to energy poverty and to look at the rural-urban differentials in energy consumption.