Estimating the spill-over impacts of a clean cooking fuel program: Evidence from Ghana

Abstract

• We investigate the spill-over impacts of Ghana's Rural LPG Promotion Program (RLPGPP) • No significant increase in LPG use nor reduction in dirty fuel use is observed among beneficiary districts • After matching beneficiary and non-beneficiary districts, significant reduction in poverty is observed. • The increase in refill station construction and operation during the period of the RLPGPP implementation might play a role in reducing poverty in beneficiary districts. Transition to cleaner cooking fuels is a key challenge for sustainable development. This study evaluates the spill-over impact of a program that distributes liquefied petroleum gas (LPG) cylinders and accessories for free on cooking fuel choice and poverty alleviation in Ghana. We construct a district-level dataset based on the Ghana Living Standards Surveys 6 and 7, collected before and after the program implementation, respectively. Using difference-in-differences combined with matching techniques, we find that the program had no significant spill-over impacts on primary household cooking fuel; LPG use did not increase and firewood use did not decrease among rural households in treated districts. However, there is a possible association between the program and poverty reduction in treated districts, and the likely channel is investments in refill stations. The results suggest that the program should refine its implementation strategy to yield substantial effects on cooking fuel choice. In addition, implementing the program with the right infrastructure in place could increase the benefits associated with it.