IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v148y2025ics0140988325005341.html

Bridging the energy gap: Macro-drivers of access-based energy poverty in West Africa

Author

Listed:
  • Touray, Alfusainey
  • Hao, Yu

Abstract

In 2022, approximately 694 million people worldwide lacked access to electricity, with 29 % living in West Africa. This elevated level of access-based energy poverty (AB-EP) highlights the need to understand its driving factors in the region. While micro-level studies on AB-EP are abundant, macro-level assessments are limited, particularly for West Africa. Furthermore, existing studies often lack robust methods for constructing AB-EP indices and handling panel data. This study addresses these gaps by exploring the impact of macroeconomic factors on AB-EP in West Africa. We utilized a new AB-EP index containing clean energy and technology and a panel-corrected standard error estimator to address data issues. The findings demonstrate that domestic macroeconomic factors such as energy intensity, urbanization, and income are the primary causes of AB-EP in West Africa. In contrast, external macroeconomic factors (official development assistance, external debt, trade, remittances, and foreign direct investment) have a negligible influence. This result underscores the need for local solutions. Policymakers should focus on sustainable urban development, improving energy efficiency, and enhancing per capita income, as these factors contribute significantly to reducing AB-EP. Furthermore, trade and financial inflow policies should strategically be directed to enhance West Africa's energy access.

Suggested Citation

  • Touray, Alfusainey & Hao, Yu, 2025. "Bridging the energy gap: Macro-drivers of access-based energy poverty in West Africa," Energy Economics, Elsevier, vol. 148(C).
    • Handle: RePEc:eee:eneeco:v:148:y:2025:i:c:s0140988325005341
    DOI: 10.1016/j.eneco.2025.108707
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140988325005341
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eneco.2025.108707?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Baltagi, Badi H. & Feng, Qu & Kao, Chihwa, 2012. "A Lagrange Multiplier test for cross-sectional dependence in a fixed effects panel data model," Journal of Econometrics, Elsevier, vol. 170(1), pages 164-177.
    2. Wolde-Rufael, Yemane, 2006. "Electricity consumption and economic growth: a time series experience for 17 African countries," Energy Policy, Elsevier, vol. 34(10), pages 1106-1114, July.
    3. González-Eguino, Mikel, 2015. "Energy poverty: An overview," Renewable and Sustainable Energy Reviews, Elsevier, vol. 47(C), pages 377-385.
    4. Ozturk, Ilhan & Aslan, Alper & Kalyoncu, Huseyin, 2010. "Energy consumption and economic growth relationship: Evidence from panel data for low and middle income countries," Energy Policy, Elsevier, vol. 38(8), pages 4422-4428, August.
    5. Sen, Amartya, 2001. "Development as Freedom," OUP Catalogue, Oxford University Press, number 9780192893307.
    6. Jeremy Bulow & Kenneth Rogoff, 2005. "Grants versus Loans for Development Banks," American Economic Review, American Economic Association, vol. 95(2), pages 393-397, May.
    7. Adams, Richard Jr. & Page, John, 2005. "Do international migration and remittances reduce poverty in developing countries?," World Development, Elsevier, vol. 33(10), pages 1645-1669, October.
    8. Agradi, Mawunyo, 2023. "Does remittance inflow influence energy poverty?," Applied Energy, Elsevier, vol. 335(C).
    9. Okere, Kingsley Ikechukwu & Dimnwobi, Stephen Kelechi & Ekesiobi, Chukwunonso & Onuoha, Favour Chidinma, 2023. "Turning the tide on energy poverty in sub-Saharan Africa: Does public debt matter?," Energy, Elsevier, vol. 282(C).
    10. Hui Wang & Muhammad Wasif Zafar & Shujaat Abbas & Mehmet Akif Destek, 2023. "An assessment of energy poverty in sub-Saharan Africa: the role of financial inclusion and education," Economic Change and Restructuring, Springer, vol. 56(6), pages 4689-4711, December.
    11. Barkat, Karim & Alsamara, Mouyad & Mimouni, Karim, 2023. "Can remittances alleviate energy poverty in developing countries? New evidence from panel data," Energy Economics, Elsevier, vol. 119(C).
    12. Pesaran, M. Hashem & Smith, Ron, 1995. "Estimating long-run relationships from dynamic heterogeneous panels," Journal of Econometrics, Elsevier, vol. 68(1), pages 79-113, July.
    13. T. S. Breusch & A. R. Pagan, 1980. "The Lagrange Multiplier Test and its Applications to Model Specification in Econometrics," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(1), pages 239-253.
    14. Jerry Hausman, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    15. M. Hashem Pesaran, 2021. "General diagnostic tests for cross-sectional dependence in panels," Empirical Economics, Springer, vol. 60(1), pages 13-50, January.
    16. Abbott, Philip & Bentzen, Jeanet & Tarp, Finn, 2009. "Trade and Development: Lessons from Vietnam's Past Trade Agreements," World Development, Elsevier, vol. 37(2), pages 341-353, February.
    17. Joakim Westerlund, 2007. "Testing for Error Correction in Panel Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(6), pages 709-748, December.
    18. Beck, Nathaniel & Katz, Jonathan N., 1995. "What To Do (and Not to Do) with Time-Series Cross-Section Data," American Political Science Review, Cambridge University Press, vol. 89(3), pages 634-647, September.
    19. Kaja Primc & Renata Slabe‐Erker & Boris Majcen, 2019. "Energy poverty: A macrolevel perspective," Sustainable Development, John Wiley & Sons, Ltd., vol. 27(5), pages 982-989, September.
    20. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    21. Kanagawa, Makoto & Nakata, Toshihiko, 2008. "Assessment of access to electricity and the socio-economic impacts in rural areas of developing countries," Energy Policy, Elsevier, vol. 36(6), pages 2016-2029, June.
    22. Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July.
    23. Bernard Meka'a, Cosmas & Landry Djamen, Boris & Noufelie, Romus, 2024. "Foreign direct investment, Green Technological Innovation and Energy Poverty: Empirical evidences from Sub-Saharan African countries," Renewable Energy, Elsevier, vol. 231(C).
    24. Ravallion, Martin, 2016. "The Economics of Poverty: History, Measurement, and Policy," OUP Catalogue, Oxford University Press, number 9780190212773.
    25. Pachauri, Shonali & Spreng, Daniel, 2011. "Measuring and monitoring energy poverty," Energy Policy, Elsevier, vol. 39(12), pages 7497-7504.
    26. Kiviet, Jan F., 1995. "On bias, inconsistency, and efficiency of various estimators in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 68(1), pages 53-78, July.
    27. Eugène Dimaviya Compaore & Asmo Guira & Boukaré Maiga, 2024. "Mobile money and multidimensional energy poverty: a cross-national study of Burkina Faso and Togo," Cogent Economics & Finance, Taylor & Francis Journals, vol. 12(1), pages 2399758-239, December.
    28. Ben Cheikh, Nidhaleddine & Ben Zaied, Younes & Nguyen, Duc Khuong, 2023. "Understanding energy poverty drivers in Europe," Energy Policy, Elsevier, vol. 183(C).
    29. Rafael E. De Hoyos & Vasilis Sarafidis, 2006. "Testing for cross-sectional dependence in panel-data models," Stata Journal, StataCorp LLC, vol. 6(4), pages 482-496, December.
    30. Zhou, Kui & Wang, Yinsu & Wang, Huan & Tan, Jing, 2024. "Does China's outward foreign direct investment alleviate energy poverty in host countries? Evidence from countries along the belt and road initiative," Renewable Energy, Elsevier, vol. 223(C).
    31. Elizabeth Asiedu, 2006. "Foreign Direct Investment in Africa: The Role of Natural Resources, Market Size, Government Policy, Institutions and Political Instability," The World Economy, Wiley Blackwell, vol. 29(1), pages 63-77, January.
    32. Pereira, Marcio Giannini & Freitas, Marcos Aurélio Vasconcelos & da Silva, Neilton Fidelis, 2010. "Rural electrification and energy poverty: Empirical evidences from Brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(4), pages 1229-1240, May.
    33. Gupta, Sanjeev & Pattillo, Catherine A. & Wagh, Smita, 2009. "Effect of Remittances on Poverty and Financial Development in Sub-Saharan Africa," World Development, Elsevier, vol. 37(1), pages 104-115, January.
    34. Zou, Ran & Yang, Jun & Feng, Chao, 2023. "Does informatization alleviate energy poverty? A global perspective," Energy Economics, Elsevier, vol. 126(C).
    35. Brew-Hammond, Abeeku, 2010. "Energy access in Africa: Challenges ahead," Energy Policy, Elsevier, vol. 38(5), pages 2291-2301, May.
    36. Molla Shahadat Hossain Lipu & Pujan Shrestha & Sivanappan Kumar, 2016. "Energy poverty and access to modern energy of urban poor: a case of Dhaka, Bangladesh," International Journal of Energy Technology and Policy, Inderscience Enterprises Ltd, vol. 12(3), pages 270-294.
    37. Banal-Estañol, Albert & Calzada, Joan & Jordana, Jacint, 2017. "How to achieve full electrification: Lessons from Latin America," Energy Policy, Elsevier, vol. 108(C), pages 55-69.
    38. Gafa, Dede W. & Egbendewe, Aklesso Y.G., 2021. "Energy poverty in rural West Africa and its determinants: Evidence from Senegal and Togo," Energy Policy, Elsevier, vol. 156(C).
    39. Li, Weiqing & Chien, Fengsheng & Hsu, Ching-Chi & Zhang, YunQian & Nawaz, Muhammad Atif & Iqbal, Sajid & Mohsin, Muhammad, 2021. "Nexus between energy poverty and energy efficiency: Estimating the long-run dynamics," Resources Policy, Elsevier, vol. 72(C).
    40. Husnain, Muhammad Iftikhar ul & Nasrullah, Nasrullah & Khan, Muhammad Aamir & Banerjee, Suvajit, 2021. "Scrutiny of income related drivers of energy poverty: A global perspective," Energy Policy, Elsevier, vol. 157(C).
    41. Bouzarovski, Stefan & Petrova, Saska & Sarlamanov, Robert, 2012. "Energy poverty policies in the EU: A critical perspective," Energy Policy, Elsevier, vol. 49(C), pages 76-82.
    42. Ouedraogo, Nadia S., 2013. "Energy consumption and human development: Evidence from a panel cointegration and error correction model," Energy, Elsevier, vol. 63(C), pages 28-41.
    43. Benes, Jaromir & Chauvet, Marcelle & Kamenik, Ondra & Kumhof, Michael & Laxton, Douglas & Mursula, Susanna & Selody, Jack, 2015. "The future of oil: Geology versus technology," International Journal of Forecasting, Elsevier, vol. 31(1), pages 207-221.
    44. Ming Qi & Jing Xu & Nnenna Bridget Amuji & Shumingrui Wang & Fengqian Xu & Huan Zhou, 2022. "The Nexus among Energy Consumption, Economic Growth and Trade Openness: Evidence from West Africa," Sustainability, MDPI, vol. 14(6), pages 1-22, March.
    45. Qiang Wang & Jiaqi Guo & Rongrong Li, 2024. "Can energy poverty be eradicated by project aid? Evidence from African countries," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(1), pages 542-554, February.
    46. Leach, Gerald, 1992. "The energy transition," Energy Policy, Elsevier, vol. 20(2), pages 116-123, February.
    47. Said, Rabie & Acheampong, Alex O., 2023. "Financial inclusion and energy poverty reduction in sub-Saharan Africa," Utilities Policy, Elsevier, vol. 82(C).
    48. Shan Lu & Zhenhua Zhang & Yuxi Pan, 2025. "Assessing the Causal Relationships of Energy Poverty, Foreign Direct Investment, and Public Health at the Global Level," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 61(11), pages 3359-3381, September.
    49. Thierry Mamadou Asngar, 2022. "Does financial development improve access to electricity in sub-Saharan Africa?," SN Business & Economics, Springer, vol. 2(9), pages 1-18, September.
    50. M. Hashem Pesaran, 2007. "A simple panel unit root test in the presence of cross-section dependence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 265-312.
    51. Hsiao,Cheng, 2022. "Analysis of Panel Data," Cambridge Books, Cambridge University Press, number 9781009060752, January.
    52. Munyanyi, Musharavati Ephraim & Awaworyi Churchill, Sefa, 2022. "Foreign aid and energy poverty: Sub-national evidence from Senegal," Energy Economics, Elsevier, vol. 108(C).
    53. Pachauri, S. & Mueller, A. & Kemmler, A. & Spreng, D., 2004. "On Measuring Energy Poverty in Indian Households," World Development, Elsevier, vol. 32(12), pages 2083-2104, December.
    54. Hsiao,Cheng, 2022. "Analysis of Panel Data," Cambridge Books, Cambridge University Press, number 9781316512104, January.
    55. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    56. Borensztein, E. & De Gregorio, J. & Lee, J-W., 1998. "How does foreign direct investment affect economic growth?1," Journal of International Economics, Elsevier, vol. 45(1), pages 115-135, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zahonogo, Windbeneti Arnaud, 2025. "Do tariff reductions alleviate energy poverty? Evidence for Sub-Saharan African countries," Energy Policy, Elsevier, vol. 197(C).
    2. Anil Shrestha & Makoto Kakinaka, 2022. "Remittance Inflows and Energy Transition of the Residential Sector in Developing Countries," Sustainability, MDPI, vol. 14(17), pages 1-19, August.
    3. Muhammad Azam & Zia Ur Rehman & Yusnidah Ibrahim, 2022. "Causal nexus in industrialization, urbanization, trade openness, and carbon emissions: empirical evidence from OPEC economies," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(12), pages 13990-14010, December.
    4. Djeunankan, Ronald & Njangang, Henri & Tadadjeu, Sosson & Kamguia, Brice, 2023. "Remittances and energy poverty: Fresh evidence from developing countries," Utilities Policy, Elsevier, vol. 81(C).
    5. Eshagh Mansourkiaee, 2023. "Estimating energy demand elasticities for gas exporting countries: a dynamic panel data approach," SN Business & Economics, Springer, vol. 3(1), pages 1-28, January.
    6. Tiwari, Sunil & Si Mohammed, Kamel & Guesmi, Khaled, 2023. "A way forward to end energy poverty in China: Role of carbon-cutting targets and net-zero commitments," Energy Policy, Elsevier, vol. 180(C).
    7. Aladejare, Samson Adeniyi, 2022. "Natural resource rents, globalisation and environmental degradation: New insight from 5 richest African economies," Resources Policy, Elsevier, vol. 78(C).
    8. Usman, Muhammad & Makhdum, Muhammad Sohail Amjad, 2021. "What abates ecological footprint in BRICS-T region? Exploring the influence of renewable energy, non-renewable energy, agriculture, forest area and financial development," Renewable Energy, Elsevier, vol. 179(C), pages 12-28.
    9. Predrag Petrović, 2023. "Economic sustainability of energy conservation policy: improved panel data evidence," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(2), pages 1473-1491, February.
    10. Damette, Olivier & Seghir, Majda, 2013. "Energy as a driver of growth in oil exporting countries?," Energy Economics, Elsevier, vol. 37(C), pages 193-199.
    11. Saboori, Behnaz & Gholipour, Hassan F. & Rasoulinezhad, Ehsan & Ranjbar, Omid, 2022. "Renewable energy sources and unemployment rate: Evidence from the US states," Energy Policy, Elsevier, vol. 168(C).
    12. Shrestha, Anil & Mustafa, Andy Ali & Htike, Myo Myo & You, Vithyea & Kakinaka, Makoto, 2022. "Evolution of energy mix in emerging countries: Modern renewable energy, traditional renewable energy, and non-renewable energy," Renewable Energy, Elsevier, vol. 199(C), pages 419-432.
    13. Huaping Sun & Love Enna & Augustine Monney & Dang Khoa Tran & Ehsan Rasoulinezhad & Farhad Taghizadeh-Hesary, 2020. "The Long-Run Effects of Trade Openness on Carbon Emissions in Sub-Saharan African Countries," Energies, MDPI, vol. 13(20), pages 1-18, October.
    14. Khalid, Usman & Shafiullah, Muhammad, 2021. "Financial development and governance: A panel data analysis incorporating cross-sectional dependence," Economic Systems, Elsevier, vol. 45(2).
    15. Osman, Mohamed & Gachino, Geoffrey & Hoque, Ariful, 2016. "Electricity consumption and economic growth in the GCC countries: Panel data analysis," Energy Policy, Elsevier, vol. 98(C), pages 318-327.
    16. Abdilahi Ali & Baris Alpaslan, 2017. "Is There an Investment Motive Behind Remittances? Evidence From Panel Cointegration," Journal of Developing Areas, Tennessee State University, College of Business, vol. 51(1), pages 63-82, January-M.
    17. Uzar, Umut, 2020. "Political economy of renewable energy: Does institutional quality make a difference in renewable energy consumption?," Renewable Energy, Elsevier, vol. 155(C), pages 591-603.
    18. Khan, Irfan & Hou, Fujun & Le, Hoang Phong & Ali, Syed Ahtsham, 2021. "Do natural resources, urbanization, and value-adding manufacturing affect environmental quality? Evidence from the top ten manufacturing countries," Resources Policy, Elsevier, vol. 72(C).
    19. Purcel, Alexandra-Anca & Dragos, Cristian Mihai & Mare, Codruța & Dragos, Simona Laura, 2023. "Voluntary health insurance and out-of-pocket payments in European OECD countries," Economic Modelling, Elsevier, vol. 120(C).
    20. Bakry, Walid & Nghiem, Xuan-Hoa & Farouk, Sherine & Vo, Xuan Vinh, 2023. "Does it hurt or help? Revisiting the effects of ICT on economic growth and energy consumption: A nonlinear panel ARDL approach," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 597-617.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:148:y:2025:i:c:s0140988325005341. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eneco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.