Energy access and the ultra-poor: Do unconditional social cash transfers close the energy access gap in Malawi?

Abstract

Despite global progress towards improving energy access, major challenges remain for closing the energy access gap between ultra-poor and better off households, and for reaching ultra-poor and last mile populations. Using data from Malawi, we explore the energy access gap between ultra-poor (N = 900) and better-off households (N = 2666) from the same communities. Compared to better-off households, ultra-poor households had significantly increased odds of having no lighting (OR = 1.58), and significantly reduced odds of having improved lighting (OR = 0.89), owning an improved firewood cookstove (OR = 0.90), and owning a charcoal stove (OR = 0.86). A sub-set of ultra-poor households in our sample received unconditional social cash transfer program (SCTP) payments from the Government of Malawi. Recipients of SCTP payments had significantly reduced odds of having no source of lighting in the household (OR = 0.21) and were more than three times more likely to own an improved cookstove (OR = 3.64) compared to ultra-poor households that have not received payments. The absolute value of per capita expenditures on energy related goods and services is statistically significantly higher for ultra-poor households that receive social cash transfers. We conclude that ultra-poor households experience greater depth of energy poverty compared to better-off households in the same communities. We also find that unconditional social cash transfer payments contribute to improved energy access for the ultra-poor, suggesting that they are a potentially important strategy for catalyzing energy transitions among the ultra-poor.