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The effects of solar home system on welfare in off-grid areas: Evidence from Côte d’Ivoire

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  • Diallo, Arouna
  • Moussa, Richard K.

Abstract

In Côte d’Ivoire, the electricity grid covers only 54% of the localities in 2017 while the country has a high solar potential due to a regular solar radiation. This paper analyses the welfare benefits of using solar home system as a source of electricity in remote areas in Côte d’Ivoire. We use household-level data gleaned from 2015 Living Standards Measurement Surveys (LSMS). The household welfare is measured using three indicators that are income, education and health. To account for the endogeneity bias due to this simultaneity between welfare and energy use, we use a regression model with an endogenous treatment. The results confirm the positive effects of SHS use on welfare outcomes. Specifically, we find that the use of solar home system increases the household consumption per capita and the household average years of schooling by 41.96% and 1.79 years respectively and reduces the number of household members that report an illness by 2.35. The highly significant magnitude of SHS impact on the welfare in remote areas makes a powerful argument for implementing a policy for spreading its use.

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  • Diallo, Arouna & Moussa, Richard K., 2020. "The effects of solar home system on welfare in off-grid areas: Evidence from Côte d’Ivoire," Energy, Elsevier, vol. 194(C).
    • Handle: RePEc:eee:energy:v:194:y:2020:i:c:s0360544219325307
    DOI: 10.1016/j.energy.2019.116835
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    1. Nathanael Ojong, 2022. "Fostering Human Wellbeing in Africa through Solar Home Systems: A Systematic and a Critical Review," Sustainability, MDPI, vol. 14(14), pages 1-15, July.
    2. Richard S. J. Tol, 2023. "Navigating the energy trilemma during geopolitical and environmental crises," Papers 2301.07671, arXiv.org.
    3. Vivien Kizilcec & Priti Parikh & Iwona Bisaga, 2021. "Examining the Journey of a Pay-as-You-Go Solar Home System Customer: A Case Study of Rwanda," Energies, MDPI, vol. 14(2), pages 1-26, January.
    4. Mukisa, Nicholas & Manitisa, Mele Sikimeti & Nduhuura, Paul & Tugume, Erick & Chalwe, Chanda Karen, 2022. "Solar home systems adoption in Sub-Saharan African countries: Household economic and environmental benefits assessment," Renewable Energy, Elsevier, vol. 189(C), pages 836-852.
    5. Assoumou, Edi & McIsaac, Florent, 2022. "Côte d'Ivoire's electricity challenge in 2050: Reconciling economic development and climate commitments," Energy Policy, Elsevier, vol. 160(C).
    6. Susana Silva & Erika Laranjeira & Isabel Soares, 2021. "Health Benefits from Renewable Electricity Sources: A Review," Energies, MDPI, vol. 14(20), pages 1-17, October.
    7. Olumide Hassan & Stephen Morse & Matthew Leach, 2020. "The Energy Lock-In Effect of Solar Home Systems: A Case Study in Rural Nigeria," Energies, MDPI, vol. 13(24), pages 1-24, December.
    8. Thomas, P.J.M. & Sandwell, P. & Williamson, S.J. & Harper, P.W., 2021. "A PESTLE analysis of solar home systems in refugee camps in Rwanda," Renewable and Sustainable Energy Reviews, Elsevier, vol. 143(C).

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    More about this item

    Keywords

    Solar energy; Solar home system; Poverty; Education; Health; Off-grid rural areas;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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