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Disbursing emergency relief through utilities: Evidence from Ghana

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  • Berkouwer, Susanna B.
  • Biscaye, Pierre E.
  • Puller, Steven
  • Wolfram, Catherine D.

Abstract

We provide descriptive evidence on the challenges in efficiently, effectively, and fairly distributing in-kind electricity transfers to households. We collect panel data from 1200 households eligible for Ghana’s COVID-19 electricity relief program. Distributing relief through electricity transfers enabled an immediate response to the crisis. Theoretical efficiency concerns are mitigated because transfers were inframarginal and storable for most households. Transfer receipt may have increased support for the governing party, possibly due to obfuscation of the program’s financial burden. However, the program was regressive in design, and implementation challenges – delays, technological hurdles, information constraints, and the targeting of meters rather than households – add to inefficiency and regressivity. Households receiving the least average relief are those who use less electricity, pay a landlord or other intermediary for electricity, or share an electricity meter—characteristics of low-income households. Program implementation challenges were just as important as design features in determining program costs and benefits.

Suggested Citation

  • Berkouwer, Susanna B. & Biscaye, Pierre E. & Puller, Steven & Wolfram, Catherine D., 2022. "Disbursing emergency relief through utilities: Evidence from Ghana," Journal of Development Economics, Elsevier, vol. 156(C).
    • Handle: RePEc:eee:deveco:v:156:y:2022:i:c:s0304387822000086
    DOI: 10.1016/j.jdeveco.2022.102826
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    Cited by:

    1. Marx, Paul & Eichhorst, Werner & Rinne, Ulf & Brunner, Johannes, 2022. "Income Support for Non-covered Workers during COVID-19: A Review of Policy Responses," IZA Policy Papers 189, Institute of Labor Economics (IZA).
    2. Jack, B. Kelsey & McDermott, Kathryn & Sautmann, Anja, 2022. "Multiple price lists for willingness to pay elicitation," Journal of Development Economics, Elsevier, vol. 159(C).
    3. Abay,Kibrom A. & Yonzan,Nishant & Kurdi,Sikandra Smith & Hirfrfot,Kibrom Tafere, 2022. "Revisiting Poverty Trends and the Role of Social Protection Systems in Africa during theCOVID-19 Pandemic," Policy Research Working Paper Series 10172, The World Bank.
    4. Berkouwer, Susanna & Biscaye, Pierre & Hsu, Eric & Kim, Oliver & Lee, Kenneth & Miguel, Edward & Wolfram, Catherine, 2023. "Money or Power? Choosing Covid-19 aid in Kenya," Energy Economics, Elsevier, vol. 127(PB).
    5. Kibrom A Abay & Nishant Yonzan & Sikandra Kurdi & Kibrom Tafere, 2023. "Revisiting Poverty Trends and the Role of Social Protection Systems in Africa during the COVID-19 Pandemic," Journal of African Economies, Centre for the Study of African Economies, vol. 32(Supplemen), pages 44-68.

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    More about this item

    Keywords

    Development policy implementation; Energy economics; Evaluation of government policy; Energy subsidies; Ghana; Covid-19 relief programs;
    All these keywords.

    JEL classification:

    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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