Energy poverty in Ghana: Any progress so far?

Abstract

This paper investigates the dynamics of energy poverty in Ghana using two nationwide cross-sectional datasets (Ghana Living Standards Surveys Round 5 and Round 6). Employing the Multidimensional Energy Poverty Index (MEPI) as a measure of energy poverty, this paper estimates that the share of energy poor people decreased from 88.4% in 2005/2006 to 82.5% in 2012/2013. The results indicate that although there has been a significant decline in the overall energy poverty in Ghana during the study periods, the incidence of energy poverty remains high. Moreover, the study findings show a large gap between urban and rural energy poverty over the two periods; rural people are almost twice as energy poor as urban people. These findings suggest the need for the incorporation of energy poverty reduction strategies into income poverty reduction strategies to help improve not only access to modern energy but also in terms of affordability.