Essays on Intersection of Energy Poverty and Development Outcomes

  • Oladoke Oke

Student thesis: Doctoral Thesis

Abstract

The overarching objective of this thesis is to undertake a comprehensive exploration of the multifaceted challenges posed by energy poverty in Sub-Saharan Africa(SSA), elucidating its far-reaching implications for development – mainly productivity, health outcomes and gender equity across the continent. Firstly, we explore the impact of energy poverty on industrial productivity throughout Africa. The World Bank Enterprise Survey (WBES) provides a reliable regional dataset on energy conditions in Sub-Saharan Africa (SSA) that we leverage for this purpose. A key finding of our study is the consistently negative correlation observed between power outages and various indicators of productivity. This unequivocally underscores the profoundly detrimental effect of power outages on firm productivity within the context of SSA. We employ ordinary least squares (OLS) with robust standard errors for model estimation. Based on this, we strongly advocate for policymakers to prioritise addressing and enhancing electricity provision for manufacturing firms, particularly those situated within industrial estates. This is more crucial than the needs of service firms, as our analysis reveals they appear to be comparatively less adversely affected by power outages. While investigating generator ownership as a potential mitigating factor for power outages, our findings yield mixed results. Nevertheless, the available evidence indicates that firms reliant on backup generation systems do not necessarily enjoy superior productivity outcomes.

Leveraging the World Bank Development Indicators(WDI), we subsequently, we undertake a comprehensive examination to ascertain the role of renewable energy consumption in ameliorating human health conditions in Africa. Our principal discovery reveals a positive effect of renewable energy consumption on public health outcomes in the African context. We present evidence to assert that the utilisation of renewable energy sources engenders enhancements in public health by facilitating increased life expectancy and a reduction in mortality rates. While the existing body of literature acknowledges the substantial potential of renewable energy for human health and the environment, our study adopts an African perspective to unveil the nuanced magnitude of the impact of renewable energy consumption. This is accomplished through the incorporation of regional dummies and interaction effects to account for heterogeneity, thereby providing an in-depth understanding of the multifaceted nature of this relationship within distinct African regions. When we control for endogeneity using GMM and Gaussian Copulas, our results are largely consistent.

Finally, we delve into the intricate interplay between the utilisation of modern energy sources and the attainment of gender equity. The primary outcomes of the study suggest that the adoption of greener energy, particularly by females, improves female health, education and income thereby suggesting a mechanism of transmission to gender equity. Notably, our analysis reveals a positive correlation between greener energy utilisation and enhanced female school enrolment rates, signifying the beneficial influence of such practices on fostering educational opportunities for women. Furthermore, we undertake a comprehensive assessment of the impact of green energy adoption on female health outcomes. Our analysis presents a positive association between greener energy usage and improvements in female life expectancy, female survival rates, and a reduction in female mortality rates.

The implications of this research extend to key stakeholders involved in energy access, sustainable development, and gender equality initiatives in Africa. Institutions such as the African Development Bank (AfDB), the World Bank assisted Energy Sector Management Assistance Program (ESMAP) and the United Nations Entity for Gender Equality and the Empowerment of Women (UN Women) can leverage these findings to inform their strategies and interventions. ESMAP and AfDB can use insights from this study to guide investments and interventions aimed at improving energy infrastructure, promoting renewable energy projects, and integrating gender-responsive approaches into energy sector initiatives. Additionally, UN Women can glean useful data driven insights that this thesis provides to improve its advocacy for gender-responsive policies and programs within the energy sector to ensure equitable benefits for women and girls.
Furthermore, Policymakers can prioritise investments in grid stability and electricity infrastructure development, particularly for industrial zones. Businesses can make informed decisions regarding power security strategies based on the analysis of generator usage. International organisations are presented with evidence to support Africa's transition to clean energy sources, not only for environmental benefits but also for fostering a healthier and more productive population. The link between green energy and female empowerment highlights the potential for narrowing the gender gap, with improved health, education, and income for women.
Date of Award17 Jun 2024
Original languageEnglish
SupervisorAbhijit Sharma (Main Supervisor) & Gareth Downing (Co-Supervisor)

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