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1 – 10 of over 62000Ebenezer Bugri Anarfo, Abel Mawuko Agoba, Yakubu Awudu Sare and Daniel Komla Gameti
This study aims to investigate the impact of energy access on foreign direct investment (FDI) in an emerging market.
Abstract
Purpose
This study aims to investigate the impact of energy access on foreign direct investment (FDI) in an emerging market.
Design/methodology/approach
The study uses the two-stage least square instrumental variables estimation approach to compute the parameters of the model to account for any potential endogeneity and time persistence in energy access.
Findings
The results show that energy access significantly influences FDI inflows in Ghana. The results of the study also revealed that natural resources and macroeconomic variables such as real interest rate, gross domestic product growth rate are significant determinants of FDI inflows in Ghana.
Practical implications
The practical implication of this study is that there is a need for energy sector policy reforms in Ghana that would guarantee a secured and continued supply of energy to enhance energy access to boost FDI. Ghana should aim for a cost-effective, stable and environmentally friendly source of energy as an alternative to hydro energy as the main source of its power generation to promote FDI. Also, Ghana should initiate and implement policies aimed at creating an enabling and stable macroeconomic environment, as macroeconomic factors in this study are found to be drivers of FDI.
Originality/value
This study provides firsthand information on energy access and FDI from the Ghanaian perspective.
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Dramani Bukari, Francis Xavier Dery Tuokuu, Shafic Suleman, Ishmael Ackah and Godwin Apenu
The purpose of this paper is to present a comprehensive review of the programmes being implemented with a view to ascertaining if they adequately address the energy needs of the…
Abstract
Purpose
The purpose of this paper is to present a comprehensive review of the programmes being implemented with a view to ascertaining if they adequately address the energy needs of the poor more holistically and sustainably.
Design/methodology/approach
The content of this desktop review is based on information collected through a review of available energy policy documents from the Ghana Government and related governmental agencies, such as the Energy Commission and Ghana Statistical Services, international energy-related agencies, such as the International Energy Agency (World Vision, 2013), as well as other related web searches. Additionally, global and Sub-Saharan African energy access documents were reviewed by analysing secondary data from the World Bank and UN policy reports, statistical data, strategies, regulations, protocols and other related documents (World Vision, 2013). Furthermore, some policy documents on energy access and usage were explored mainly from Senegal and Ghana to ascertain governments’ policies, regulations and strategies in the implementation of energy access policies.
Findings
The paper offers all the various strategies being implemented in an attempt to establish a foothold on the problem of affording the poor with clean and affordable energies. The paper also presents the rich experiences of Senegal in its bid to see expanded access in liquefied petroleum gas usage by residential consumers.
Originality/value
The paper provides some policy and theoretical implications for improving Ghana’s energy access.
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James Temitope Dada, Folorunsho M. Ajide and Mamdouh Abdulaziz Saleh Al-Faryan
Driven by the Sustainable Development Goals (goals 7, 8, 12 and 13), this study investigates the moderating role of financial development in the link between energy poverty and a…
Abstract
Purpose
Driven by the Sustainable Development Goals (goals 7, 8, 12 and 13), this study investigates the moderating role of financial development in the link between energy poverty and a sustainable environment in African nations.
Design/methodology/approach
Panel cointegration analysis, fully modified least squares, Driscoll and Kraay least squares and method of moments quantile regression were used as estimation techniques to examine the link between financial development, energy poverty and sustainable environment for 28 African nations. Energy poverty is measured using two proxies-access to clean energy and access to electricity, while the environment is gauged using ecological footprint.
Findings
The regression outcomes show that access to clean energy and electricity negatively impacts the ecological footprint across all the quantiles; hence, energy poverty increases environmental degradation. Financial development positively influences environmental degradation in the region at the upper quantiles. Similarly, the interactive term of energy poverty and financial development has a significant positive impact on ecological footprint; thus, the financial sector adds to energy poverty and environmental degradation. The results of other variables hint that per capita income and institutions worsen environmental quality while urbanisation strengthens the environment.
Originality/value
This study offers fresh insights into the moderating effect of financial development in the link between energy poverty and sustainable environment in African countries.
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Shaheen Akter, Xiaolan Fu, Leonardo Bremermann, Mauro Rosa, Valerie Nattrodt, Juha Väätänen, Roman Teplov and Iulduz Khairullina
Access to affordable and sustainable energy is crucial for the improvement of the well-being of modern societies. Most energy technologies require comparatively high up-front…
Abstract
Access to affordable and sustainable energy is crucial for the improvement of the well-being of modern societies. Most energy technologies require comparatively high up-front investment, which adds to the challenge of electrification, despite the recognized multiple benefits. Partnership with multinational enterprises (MNEs) can provide necessary investment in infrastructure, finance, and technology for renewable energy and contribute to improving development indicators. However, remote areas with poor infrastructure do not have access to MNEs that are profit seekers. The Brazil experience with MNEs and “Light for All” (LfA) program shows that people gaining access to electricity invest more in businesses, education, health, and women reduce their drudgery at household chores. However, areas having a poor infrastructure in the north remain out of electricity, and attempts to create universal access were failed until a regulatory incentive framework and particular attention from the government was established. This is a great learning for the developing countries aiming to achieve sustainable development goals. A host country can gain development cooperation from MNEs with rightly formulated and implemented policies and regulatory conditions.
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Munmun Samantarai and Sanjib Dutta
This case study was developed using data from secondary sources. The data was collected from the organization’s website, annual reports, press releases, published reports and…
Abstract
Research methodology
This case study was developed using data from secondary sources. The data was collected from the organization’s website, annual reports, press releases, published reports and documents available on the internet.
Case overview/synopsis
According to the International Energy Agency’s (IEA) World Energy Outlook (WEO), 775 million people worldwide would not have access to electricity even by 2022, with the majority of them living in sub-Saharan Africa (SSA) (Cozzi et al., 2022). In SSA, energy poverty had been a serious issue over the years. According to the IEA, 600 million people lacked access to electricity in 2019, while 900 million people cooked with traditional fuels (Cozzi et al., 2022). A World Bank report from 2018 said many SSA countries had energy access levels of less than 25% (Cozzi et al., 2022). Energy poverty in SSA hampered sustainable development and economic growth.
Despite significant efforts to address this poverty, Africa remained the continent with the lowest energy density in the world. Although solar and other energy-saving products were appealing, their adoption rates were modest, and their distribution strategies were not particularly effective. The lack of electricity exacerbated a number of socioeconomic problems, as it increased the demand for and use of wood fuel, which caused serious health problems and environmental harm.
While working in Uganda, Katherine Lucey (Lucey) saw that having no electricity had negatively affected women’s health in particular because it was women who were responsible for taking care of the home. These effects were both direct and indirect. The women’s reliance on potentially harmful fuels for cooking, such as firewood and charcoal, resulted in their suffering from respiratory and eye problems, in addition to other health issues. Furthermore, the distribution of energy-saving and renewable energy items was seen as the domain of men, and there was an inherent gender bias in energy decisions. Women were not encouraged to participate in energy decisions, despite the fact that they were the ones managing the home and would gain from doing so. In addition, because there was no light after dusk, people worked less efficiently. Lucey saw the economic and social difficulties that electricity poverty caused for women in rural Africa. She also witnessed how the lives of a few families and organizations changed after they started using solar products. This motivated her to start Solar Sister with the mission of achieving a sustainable, scalable impact model for expanding access to clean energy and creating economic opportunities for women.
Solar Sister collaborated with local women and women-centric organizations to leverage the existing network. Women were trained, provided all the necessary support and encouraged to become Solar Sister Entrepreneurs and sell solar products in their communities and earn a commission on each sale. To provide clean energy at their customers’ doorstep, the Solar Sister Entrepreneurs received a “business in a bag” – a start-up kit containing inventory, training and marketing assistance.
Solar Sister’s business model empowered the women in SSA by providing them with an entrepreneurship opportunity and financial independence. Also, the use of solar products helped them shift from using hazardous conventional cooking fuels and lead a healthy life. The children in their households were able to study after sunset, and people in the community became more productive with access to clean energy.
The COVID-19 pandemic outbreak, however, had a serious impact on Solar Sister. It found it challenging to mentor and encourage new business owners due to restrictions on travel and on group gatherings. The Solar Sisters were unable to do business outside the house either. Their source of income, which they relied on to support their families, was therefore impacted. The COVID-19 outbreak also slowed down the progress achieved by the community over the years and made household energy purchasing power worse. Furthermore, the organization was also grappling with other issues like limited access to capital, lack of awareness and infrastructural challenges. Another challenge lay in monitoring and evaluating the organization’s impact on the last mile.
In the absence of standardized measurement tools and issues in determining the social impact of Solar Sister, it would be interesting to see what approach Lucey will take to measure the impact of Solar Sister on the society. What measurement tool/s will Lucey implement to gauge the social impact of Solar Sister?
Complexity academic level
This case is intended for use in PG/Executive-level programs as part of a course on Social Entrepreneurship and Sustainability.
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Alhassan A. Karakara, Evans S. Osabuohien and Simplice Asongu
This paper aims to analyse the extent to which households are deprived (or otherwise) of clean energy sources in Ghana.
Abstract
Purpose
This paper aims to analyse the extent to which households are deprived (or otherwise) of clean energy sources in Ghana.
Design/methodology/approach
It engages the Ghana Demographic and Health Survey data. Three different energy deprivation indicators were estimated: cooking fuel deprivation, lighting deprivation and indoor air pollution. The empirical evidence is based on logit regressions that explain whether households are deprived or not.
Findings
The results show that energy deprivation or access is contingent on the area of residence. Energy access and deprivation in Ghana show some regional disparities, even though across every region, the majority of households use three fuel types: liquefied petroleum gas, charcoal and wood cut. Increases in wealth and education lead to reduction in the likelihood of being energy deprived. Thus, efforts should be geared towards policies that will ensure households having access to clean fuels to reduce the attendant deprivations and corresponding effects of using dangerous or dirty fuels.
Originality/value
This study complements the extant literature by analysing the extent to which households are deprived (or otherwise) of clean energy sources in Ghana.
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Folorunsho M. Ajide and James Temitope Dada
Energy poverty is a global phenomenon, but its prevalence is enormous in most African countries, with a potential impact on quality of life. This study aims to investigate the…
Abstract
Purpose
Energy poverty is a global phenomenon, but its prevalence is enormous in most African countries, with a potential impact on quality of life. This study aims to investigate the impact of energy poverty on the shadow economy.
Design/methodology/approach
The study uses panel data from 45 countries in Africa over a period of 1996–2018. Using panel cointegrating regression and panel vector auto-regression model in the generalized method of moments technique.
Findings
This study provides that energy poverty deepens the size of the shadow economy in Africa. It also documents that there is a bidirectional causality between shadow economy and energy poverty. Therefore, the two variables can predict each other.
Practical implications
The study suggests that lack of access to clean and modern energy services contributes to the depth of the shadow economy in Africa. African authorities are advised to strengthen rural and urban electrification initiatives by providing adequate energy infrastructure so as to reduce the level of energy poverty in the region. To ensure energy sustainability delivery, the study proposes that the creation of national and local capacities would be the most effective manner to guarantee energy accessibility and affordability. Also, priorities should be given to the local capital mobilization and energy subsidies for the energy poor. Energy literacy may also contribute to the sustainability and the usage of modern energy sources in Africa.
Originality/value
Previous studies reveal that income inequality contributes to the large size of shadow economy in developing economies. However, none of these studies analyzed the role of energy poverty and its implications for underground economic operations. Inadequate access to modern energy sources is likely to deepen the prevalence of informality in developing nations. Based on this, this study provides fresh evidence on the implications of energy deprivation on the shadow economy in Africa using a heterogeneous panel econometric framework. The study contributes to the literature by advocating that the provision of affordable modern energy sources for rural and urban settlements, and the creation of good energy infrastructure for the firms in the formal economy would not only improve the quality of life but also important to discourage underground economic operations in developing economies.
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Godwell Nhamo, Charles Nhemachena, Senia Nhamo, Vuyo Mjimba and Ivana Savić
Geeta Rani Duppati, Stifanos Hailemariam, Roselyn Murray and Jana Kivell
This study aims to provide empirical evidence on two research questions: firstly, whether green finance is positively related to electricity access, and, secondly, if the domestic…
Abstract
Purpose
This study aims to provide empirical evidence on two research questions: firstly, whether green finance is positively related to electricity access, and, secondly, if the domestic economic environment moderates the relationship between green finance and electricity access? This paper pays particular attention to the regional disparities in Africa.
Design/methodology/approach
While pursuing the study objectives, the authors apply a variety of statistical approaches and tools to assess the robustness of the findings. The authors use panel dataset for analysing data. In order to empirically examine the relationship between green finance and electricity access in the African region, the paper employs static and dynamic panel estimation methods, Poisson method and adopts two-step system generalized method of moments (GMM) approach for dealing with issues relating to endogeneity. The authors also use alternate proxy for the electricity access, which is drawn from the regulatory indicators for sustainable energy (RISE) scores.
Findings
The authors find that despite the fact that green funding appears to support job creation, household incomes aren't high enough to drive rising demand for electricity. The study underscores the role and responsibilities of external funding agencies to ensure that funds at the receiving end are effectively routed to encourage access to clean and sustainable energy, which is good to the economic and domestic environment. Further, due to the relatively modest size of some funds, the cost to administer those funds is larger than the funds themselves. This causes inefficiencies, which may temporarily provide jobs but not lasting growth. This means there is no regular need for energy, therefore larger investors have no reason to enter the market. This discourages investors from public-private partnerships or private investments and prevents future investment.
Research limitations/implications
The provide insights into the private-public partnerships and whether the challenges to electricity access are being turned into investment opportunities. The effects of the power Africa project initiatives are revealing, with, sanitation being an impediment to the development of electricity infrastructure, specifically in low-income group countries.
Practical implications
The study confirms the view that trivial amounts of green financing (US-Aid or grants) impose a burden on the absorptive capacity of the recipient government and increases the transaction costs and is likely to be an impediment (Kimura et al., 2012) to initiating projects that enhance electricity access.
Social implications
The results indicate that although green financing seems to be supporting employment opportunities, income levels are insufficient to create demand for electricity usage. It, therefore, becomes imperative that sanitation (SDG 6) is fully addressed in order to ensure that SDG 7 is attained.
Originality/value
The authors provide insights around the private public partnerships and whether the challenges to electricity access are being turned into investment opportunities. The effects of the power Africa project initiatives are revealing, with, sanitation being an impediment to the development of electricity infrastructure, specifically in low-income group countries.
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Minh Ha-Duong and Hoai-Son Nguyen
The authors estimate the reduction of electricity poverty in Vietnam. The essential argument is that human development is about subjective feeling as much as technology and income.
Abstract
Purpose
The authors estimate the reduction of electricity poverty in Vietnam. The essential argument is that human development is about subjective feeling as much as technology and income.
Design/methodology/approach
The authors use a self-reported satisfaction indicator as complementary to objective indicators based on national household surveys from 2008 to 2018.
Findings
In 2010, the fraction of households with access to electricity was over 96%. However, over 24% declared their electricity use did not meet their needs. Since 2014, the satisfaction rate is around 97%, even if 25% of the households used less than 50 kWh/month. Today there is electricity for all in Vietnam, but electricity bills weigh more and more in the budget of households.
Practical implications
The subjective energy poverty measure allows better international statistics: unlike poverty or needs-based criteria, self-assessed satisfaction of needs compares across income levels and climates.
Social implications
Inequalities in electricity use among Vietnamese households decreased during the 2008–2018 period, but are not greater than inequalities in income, contrary to the findings of Son and Yoon (2020).
Originality/value
Engineering and econometric objectivist approaches dominate the literature on sustainability monitoring. Out of 232 sustainable development goal (SDG) indicators, only two are subjective. Yet the findings show that subjective indicators tell a different part of the story. Access is not grid building, but the meaningful provision of electricity to satisfy the needs.
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