An economic assessment of energy consumption on household welfare in Ghana.
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Date
2019-06
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KNUST
Abstract
The study assesses the complexities that exist between energy consumption by households and their welfare levels using data from four waves of the Ghana living standard surveys – with datasets spanning over 35,000 households across rural and urban areas. Energy consumption was measured using the multi-tier matrix framework approach. Repeated cross-section techniques employing multiple regression models were used in assessing the impact of the different determinant factors on welfare. The study finds that fuel choice, income, poverty status are key drivers of improving a household’s welfare level.
Welfare was an increasing function of higher levels of access as well as income, poverty and other socio-economic determinants identified the study. Energy consumption rose with income, with changes in income exhibiting unitary elasticity on welfare levels. There is strong evidence that female-led households exhibit a significantly higher welfare than male-headed households. Also, the influence of location on energy use was also assessed with results showing that as households move away from the use of biomass, locational effects of energy on welfare becomes identical for both urban and rural localities.
The existing welfare gap between households using electricity and those using biomass has widened over time. This is as a result of the cumulative productivity effects of electrification to households over time. The general policy recommendation for the study aims at promoting a transitional shift from traditional energy forms to more efficient and modern energy forms.
Description
A Dissertation Submitted In Partial Fulfilment Of The Requirement For The Award Of A Master Of Science Degree In Economics.