Governance, credit access and clean cooking technologies in Sub-Saharan Africa: Implications for energy transition

Abstract

There is a global effort toward reducing or eliminating dirty fuels and technologies for cooking due to their severe health, environmental and economic implications. Reducing dirty energy usage requires an effective transition toward clean fuels and technologies for cooking. Effective governance and financial systems are needed to hasten the transition toward clean fuels and technologies for cooking. However, not much is known empirically about the role of access to credit and governance in the transition towards clean cooking technologies, especially in sub-Saharan Africa (SSA). This study, therefore, utilizes the two-step-dynamic system generalized method of moment estimator to investigate the effect of access to credit and governance on the adoption of clean cooking technologies in SSA. The findings indicate that access to credit and governance variables do not facilitate clean cooking technologies usage. The conditional analysis also reveals that the governance variables moderate the effect of access to credit to impede the adoption of clean fuels and technologies for cooking. The findings indicate that economic growth, education, and rural population drive the adoption of clean cooking technologies. Sensitivity checks show that the effect of access to credit and governance on clean fuels and cooking technologies usage differs among income and regional groups within SSA. We, therefore, argue that better financial and governance systems are required to hasten the transition toward clean fuels and technologies for cooking in SSA.