Energy Poverty and mental distress in South Africa: Assessing linkages and potential pathways

Abstract

Despite the increasing attention on energy poverty due to its health implications, the South African story is yet to be told, while pathways of influence have received little empirical investigation in the extant literature. This study examines how energy poverty affects mental distress in post-apartheid South Africa and explores gender and locational heterogeneities in outcomes as well as potential pathways. We use five years of longitudinal data extracted from the National Income Dynamics Survey (NIDS). We employ the Lewbel instrumental variable method to resolve endogeneity and apply causal mediation analysis to identify potential channels of effect. The findings suggest that energy poverty is associated with an increase in mental distress. This outcome is consistent across different estimation methods and conceptualisations of energy poverty. The deteriorating effect of energy poverty on mental distress is more pronounced among females and rural residents. We further establish that experiences of persistent cough and chest pains/tightness serve as potential pathways in the link between energy poverty and mental distress. We encourage the South African government to increase budgetary allocations to the free basic electricity policy and provide connection subsidies to poor households, which have the potential to alleviate energy poverty and reduce mental distress as a result.