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Article
Publication date: 2 September 2020

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…

461

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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Article
Publication date: 3 December 2024

Admasu Asfaw Maruta

The purpose of this study is to analyze the impact of energy development on industrialization in African economies from 1990 to 2017. It aims to assess how access to electricity…

10

Abstract

Purpose

The purpose of this study is to analyze the impact of energy development on industrialization in African economies from 1990 to 2017. It aims to assess how access to electricity, energy use and overall energy development contribute to industrial growth. By using panel data analysis and advanced econometric techniques such as fixed effects, two-stage least squares (2SLS) and system-GMM estimation, this study seeks to provide empirical evidence and insights into the complex dynamics between energy policies and industrialization outcomes. The findings are intended to inform policymakers and stakeholders on effective strategies to promote sustainable industrial development in the region.

Design/methodology/approach

This study uses a quantitative approach using panel data analysis spanning 1990–2017 from various sources. It uses fixed effects, 2SLS and system-GMM estimation methods to investigate the nuanced relationship between energy development and industrialization in African economies. This comprehensive methodology facilitates a robust examination of how different dimensions of energy development influence industrialization outcomes, aiming to fill gaps in existing literature and provide insights for policy formulation and implementation.

Findings

The findings reveal that energy development significantly enhances industrialization in African economies. Access to electricity and energy use both positively impact industrial growth, with access to electricity showing a stronger influence. This study underscores the critical role of energy infrastructure in fostering industrial expansion and economic development. Moreover, robust econometric methods confirm these relationships across various specifications, highlighting the importance of tailored energy policies to sustain industrialization efforts in Africa. These findings contribute empirical insights to the literature and provide actionable recommendations for policymakers aiming to enhance energy access and promote sustainable industrial development in the region.

Originality/value

This study contributes to the literature by offering new insights into the relationship between energy development and industrialization in African economies. By using advanced econometric techniques and focusing on nuanced dimensions of energy access and use, it addresses gaps in previous research. The findings underscore the significance of energy infrastructure for industrial growth, highlighting policy implications for sustainable development in Africa. This research adds value by providing empirical evidence that informs strategies to enhance energy efficiency, expand access to electricity and promote industrialization, thus contributing to broader discussions on economic development and energy policy in the region.

Details

International Journal of Energy Sector Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1750-6220

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Article
Publication date: 31 May 2021

Ebenezer 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.

210

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.

Details

International Journal of Energy Sector Management, vol. 15 no. 5
Type: Research Article
ISSN: 1750-6220

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Article
Publication date: 9 July 2024

Malihe Ashena and Ghazal Shahpari

Energy poverty presents substantial challenges for both developed and developing nations, with the latter experiencing more pronounced adverse effects due to issues related to the…

91

Abstract

Purpose

Energy poverty presents substantial challenges for both developed and developing nations, with the latter experiencing more pronounced adverse effects due to issues related to the provision and equitable access of energy resources. This study aims to provide a deep understanding of how financial development, economic complexity and government expenditures can impact energy poverty.

Design/methodology/approach

This research employs generalized method of moments (GMM) estimation on panel data to investigate the economic determinants of energy poverty in 31 developing countries from 2000 to 2020. For a comprehensive analysis, the proxies for energy poverty include access to electricity, access to clean fuels and energy consumption.

Findings

The findings suggest that while financial development cannot facilitate access to clean fuels in developing countries, it contributes to an increase in energy access and consumption. Another finding is that energy poverty can be alleviated by enhancing economic complexity since economic complexity can result in increased access to electricity and increased use of clean energy sources. Furthermore, the results underscore the pivotal role of government expenditures, surpassing the influence of financial development. In other words, government expenditures have the potential to significantly improve energy poverty across all three indices.

Originality/value

This is a pioneering research that seeks to examine some economic dynamics including, financial development and economic complexity on energy poverty and provide valuable guidance for policymakers aiming to promote sustainable energy development with respect to economic dynamics.

Details

International Journal of Energy Sector Management, vol. 19 no. 1
Type: Research Article
ISSN: 1750-6220

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Article
Publication date: 15 January 2024

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…

213

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.

Details

Management of Environmental Quality: An International Journal, vol. 35 no. 4
Type: Research Article
ISSN: 1477-7835

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Article
Publication date: 1 April 2024

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…

165

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.

Details

International Journal of Energy Sector Management, vol. 18 no. 6
Type: Research Article
ISSN: 1750-6220

Keywords

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Book part
Publication date: 25 September 2017

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.

Details

Multinational Enterprises and Sustainable Development
Type: Book
ISBN: 978-1-78743-163-8

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Article
Publication date: 19 June 2024

Rajesh H. Acharya and Anver C. Sadath

This paper aims to assess the relationship between energy poverty and the well-being of people using Amartya Sen’s capability approach to development as theoretical underpinning.

108

Abstract

Purpose

This paper aims to assess the relationship between energy poverty and the well-being of people using Amartya Sen’s capability approach to development as theoretical underpinning.

Design/methodology/approach

The study uses household-level energy access data collected by the Harvard Dataverse in 2015 and 2018. The authors use multidimensional indices to measure energy poverty and well-being. Further, the authors apply quantile regression approach to measure the relationship between energy poverty and well-being.

Findings

The study’s findings reveal that energy poverty and well-being are negatively related. India has made progress in reducing energy poverty and improving well-being during the study period. However, progress in reducing energy poverty is largely due to improved access to electricity and improvement in well-being due to income and financial inclusion. Using modern cooking fuel has a greater negative impact on well-being compared to lighting using electricity. Further, households spending a greater proportion of their income on modern energy fuels leads to a lower quality of life as it precludes them from using it for other purposes. The study records wide variations in the observed relationship between energy poverty and well-being across various socioeconomic groups.

Practical implications

This calls for improvement in the production and distribution of modern energy resources, which have substantial welfare implications.

Originality/value

This is the first study to measure the relationship between energy poverty and quality of life using multidimensional indices. The findings of this paper have policy implications for the pricing of energy resources and energy access measures.

Details

International Journal of Energy Sector Management, vol. 18 no. 6
Type: Research Article
ISSN: 1750-6220

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Article
Publication date: 8 December 2022

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…

184

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.

Details

International Journal of Managerial Finance, vol. 21 no. 1
Type: Research Article
ISSN: 1743-9132

Keywords

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Case study
Publication date: 4 December 2023

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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