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Unconditional cash transfers and energy poverty in South Africa

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  • Adofo, Josephine Ofori
  • Koomson, Isaac

Abstract

There has been a rise in state-sponsored cash transfer programs in Africa, yet we know little about their potential impact on energy poverty. In this study, we investigate whether unconditional cash transfers (UCTs) reduce energy poverty. Using data from a large-scale, government-led program in South Africa, we find a 7.5 percentage point reduction in energy poverty, which works through increases in asset accumulation. The effects are substantial for female-headed households, and the results are consistent across different measures of energy poverty. Overall, the findings reveal that unconditional cash transfers (UCTs) can be considered a viable policy tool to address energy poverty.

Suggested Citation

  • Adofo, Josephine Ofori & Koomson, Isaac, 2025. "Unconditional cash transfers and energy poverty in South Africa," Energy Economics, Elsevier, vol. 149(C).
    • Handle: RePEc:eee:eneeco:v:149:y:2025:i:c:s0140988325006097
    DOI: 10.1016/j.eneco.2025.108782
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    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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