IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v165y2022ics030142152200177x.html
   My bibliography  Save this article

Empirical analysis of crop diversification and energy poverty in Ghana

Author

Listed:
  • Martey, Edward

Abstract

Despite the importance of energy in countries' economies, the vast majority of people, especially in developing countries, live under the energy poverty line. To mitigate this trend, several policy options have been enacted to promote the use of clean and modern fuels given the targets set out in the Sustainable Development Goal Two (SDG2). However, there is a lack of systematic empirical evidence on how crop diversification can alleviate energy poverty in developing countries. This study used the seventh round of the Ghana Living Standard Survey (GLSS 7) to test the effect of crop diversification on the multidimensional energy poverty index (MEPI). I employ the instrumental variable (IV) and the Lewbel two stage least squares (2SLS) techniques and perform several robustness checks to address the potential endogeneity in crop choices. The estimates show that crop diversification is associated with a 0.829 standard deviation decreases in household energy poverty. The effect is prominent for urban and high-income earning households. Household income is identified as the main potential channel through which crop diversification influences energy poverty.

Suggested Citation

  • Martey, Edward, 2022. "Empirical analysis of crop diversification and energy poverty in Ghana," Energy Policy, Elsevier, vol. 165(C).
    • Handle: RePEc:eee:enepol:v:165:y:2022:i:c:s030142152200177x
    DOI: 10.1016/j.enpol.2022.112952
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S030142152200177X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2022.112952?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 search for a different version of it.

    References listed on IDEAS

    as
    1. Rhoda Mofya-Mukuka & Munguzwe Hichaambwa, 2018. "Livelihood effects of crop diversification: a panel data analysis of rural farm households in Zambia," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 10(6), pages 1449-1462, December.
    2. Alberto Alesina & Ekaterina Zhuravskaya, 2011. "Segregation and the Quality of Government in a Cross Section of Countries," American Economic Review, American Economic Association, vol. 101(5), pages 1872-1911, August.
    3. Martin L. Weitzman, 2000. "Economic Profitability Versus Ecological Entropy," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 115(1), pages 237-263.
    4. Kassie, Menale & Jaleta, Moti & Shiferaw, Bekele & Mmbando, Frank & Mekuria, Mulugetta, 2013. "Adoption of interrelated sustainable agricultural practices in smallholder systems: Evidence from rural Tanzania," Technological Forecasting and Social Change, Elsevier, vol. 80(3), pages 525-540.
    5. Julius Manda & Arega D. Alene & Cornelis Gardebroek & Menale Kassie & Gelson Tembo, 2016. "Adoption and Impacts of Sustainable Agricultural Practices on Maize Yields and Incomes: Evidence from Rural Zambia," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(1), pages 130-153, February.
    6. Rodriguez-Alvarez, Ana & Orea, Luis & Jamasb, Tooraj, 2019. "Fuel poverty and Well-Being:A consumer theory and stochastic frontier approach," Energy Policy, Elsevier, vol. 131(C), pages 22-32.
    7. Rahut, Dil Bahadur & Das, Sukanya & De Groote, Hugo & Behera, Bhagirath, 2014. "Determinants of household energy use in Bhutan," Energy, Elsevier, vol. 69(C), pages 661-672.
    8. Lovo, Stefania & Veronesi, Marcella, 2019. "Crop Diversification and Child Health: Empirical Evidence From Tanzania," Ecological Economics, Elsevier, vol. 158(C), pages 168-179.
    9. Adusah-Poku, Frank & Takeuchi, Kenji, 2019. "Energy poverty in Ghana: Any progress so far?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 112(C), pages 853-864.
    10. Martey, Edward, 2019. "Tenancy and energy choice for lighting and cooking: Evidence from Ghana," Energy Economics, Elsevier, vol. 80(C), pages 570-581.
    11. Birthal, Pratap S. & Roy, Devesh & Negi, Digvijay S., 2015. "Assessing the Impact of Crop Diversification on Farm Poverty in India," World Development, Elsevier, vol. 72(C), pages 70-92.
    12. Stefan Baumgärtner & Martin F. Quaas, 2010. "Managing increasing environmental risks through agrobiodiversity and agrienvironmental policies," Agricultural Economics, International Association of Agricultural Economists, vol. 41(5), pages 483-496, September.
    13. Rahut, Dil Bahadur & Behera, Bhagirath & Ali, Akhter, 2017. "Factors determining household use of clean and renewable energy sources for lighting in Sub-Saharan Africa," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 661-672.
    14. Martey, Edward & Kuwornu, John K.M. & Adjebeng-Danquah, Joseph, 2019. "Estimating the effect of mineral fertilizer use on Land productivity and income: Evidence from Ghana," Land Use Policy, Elsevier, vol. 85(C), pages 463-475.
    15. Arthur Lewbel, 2012. "Using Heteroscedasticity to Identify and Estimate Mismeasured and Endogenous Regressor Models," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 30(1), pages 67-80.
    16. Patrick Nussbaumer & Francesco Fuso Nerini & Ijeoma Onyeji & Mark Howells, 2013. "Global Insights Based on the Multidimensional Energy Poverty Index (MEPI)," Sustainability, MDPI, vol. 5(5), pages 1-17, May.
    17. James H. Stock & Motohiro Yogo, 2002. "Testing for Weak Instruments in Linear IV Regression," NBER Technical Working Papers 0284, National Bureau of Economic Research, Inc.
    18. Bellon, Mauricio R. & Kotu, Bekele Hundie & Azzarri, Carlo & Caracciolo, Francesco, 2020. "To diversify or not to diversify, that is the question. Pursuing agricultural development for smallholder farmers in marginal areas of Ghana," World Development, Elsevier, vol. 125(C).
    19. Salvatore Di Falco & Jean-Paul Chavas, 2008. "Rainfall Shocks, Resilience, and the Effects of Crop Biodiversity on Agroecosystem Productivity," Land Economics, University of Wisconsin Press, vol. 84(1), pages 83-96.
    20. Mulubrhan Amare & Bekele Shiferaw, 2017. "Nonfarm employment, agricultural intensification, and productivity change: empirical findings from Uganda," Agricultural Economics, International Association of Agricultural Economists, vol. 48(S1), pages 59-72, November.
    21. Ganesh Thapa & Anjani Kumar & Devesh Roy & P.K. Joshi, 2018. "Impact of Crop Diversification on Rural Poverty in Nepal," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 66(3), pages 379-413, September.
    22. David Roodman, 2011. "Fitting fully observed recursive mixed-process models with cmp," Stata Journal, StataCorp LP, vol. 11(2), pages 159-206, June.
    23. Koomson, Isaac & Danquah, Michael, 2021. "Financial inclusion and energy poverty: Empirical evidence from Ghana," Energy Economics, Elsevier, vol. 94(C).
    24. Ripon Kumar Mondal & Eliyathamby A Selvanathan & Saroja Selvanathan, 2021. "Nexus between rural nonfarm income and agricultural production in Bangladesh," Applied Economics, Taylor & Francis Journals, vol. 53(10), pages 1184-1199, February.
    25. Michler, Jeffrey D. & Josephson, Anna L., 2017. "To Specialize or Diversify: Agricultural Diversity and Poverty Dynamics in Ethiopia," World Development, Elsevier, vol. 89(C), pages 214-226.
    26. Smale, M. & Meng, E. & Brennan, J. P. & Hu, Ruifa, 2003. "Determinants of spatial diversity in modern wheat: examples from Australia and China," Agricultural Economics, Blackwell, vol. 28(1), pages 13-26, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Moteng, Ghislain & Raghutla, Chandrashekar & Njangang, Henri & Nembot, Luc Ndeffo, 2023. "International sanctions and energy poverty in target developing countries," Energy Policy, Elsevier, vol. 179(C).
    2. Terang, Bharat & Baruah, Debendra Chandra, 2023. "Techno-economic and environmental assessment of solar photovoltaic, diesel, and electric water pumps for irrigation in Assam, India," Energy Policy, Elsevier, vol. 183(C).
    3. Sedithippa J. Balaji & Munisamy Gopinath, 2023. "Spatial growth and convergence in Indian agriculture," Agricultural Economics, International Association of Agricultural Economists, vol. 54(6), pages 761-777, November.

    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. Koomson, Isaac & Awaworyi Churchill, Sefa, 2022. "Employment precarity and energy poverty in post-apartheid South Africa: Exploring the racial and ethnic dimensions," Energy Economics, Elsevier, vol. 110(C).
    2. Koomson, Isaac & Danquah, Michael, 2021. "Financial inclusion and energy poverty: Empirical evidence from Ghana," Energy Economics, Elsevier, vol. 94(C).
    3. Lin, Boqiang & Okyere, Michael Adu, 2022. "Are people energy poor because of their prosocial behavior? Evidence from Ghana," Energy, Elsevier, vol. 239(PE).
    4. Tesfaye, Wondimagegn & Tirivayi, Nyasha, 2020. "Crop diversity, household welfare and consumption smoothing under risk: Evidence from rural Uganda," World Development, Elsevier, vol. 125(C).
    5. Kofinti, Raymond Elikplim & Koomson, Isaac & Paintsil, Jones Arkoh & Ameyaw, Edward Kwabena, 2022. "Reducing children's malnutrition by increasing mothers' health insurance coverage: A focus on stunting and underweight across 32 sub-Saharan African countries," Economic Modelling, Elsevier, vol. 117(C).
    6. Koomson, Isaac & Afoakwah, Clifford & Ampofo, Akwasi, 2022. "How does ethnic diversity affect energy poverty? Insights from South Africa," Energy Economics, Elsevier, vol. 111(C).
    7. Asfaw, Solomon & Lipper, Leslie, 2015. "Adaptation to Climate Change and its Impacts on Food Security: Evidence from Niger," 2015 Conference, August 9-14, 2015, Milan, Italy 225667, International Association of Agricultural Economists.
    8. Isaac Koomson & Simplice A. Asongu & Alex O. Acheampong, 2023. "Financial inclusion and food insecurity: Examining linkages and potential pathways," Journal of Consumer Affairs, Wiley Blackwell, vol. 57(1), pages 418-444, January.
    9. Ampofo, Akwasi & Mabefam, Matthew Gmalifo, 2021. "Religiosity and Energy Poverty: Empirical evidence across countries," Energy Economics, Elsevier, vol. 102(C).
    10. Awan, Ashar & Bilgili, Faik & Rahut, Dil Bahadur, 2022. "Energy poverty trends and determinants in Pakistan: Empirical evidence from eight waves of HIES 1998–2019," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
    11. Frempong, Raymond Boadi & Orkoh, Emmanuel & Kofinti, Raymond Elikplim, 2021. "Household's use of cooking gas and Children's learning outcomes in rural Ghana," Energy Economics, Elsevier, vol. 103(C).
    12. Jun Zhang & Yuang He & Jing Zhang, 2022. "Energy Poverty and Depression in Rural China: Evidence from the Quantile Regression Approach," IJERPH, MDPI, vol. 19(2), pages 1-21, January.
    13. Elisa Gatto & Alba Marino & Guido Signorino, 2013. "Biodiversity and risk management in agriculture: what do we learn from CAP reforms? A farm-level analysis," ERSA conference papers ersa13p805, European Regional Science Association.
    14. Muhammad Shafiullah & Zhilun Jiao & Muhammad Shahbaz & Kangyin Dong, 2023. "Examining energy poverty in Chinese households: An Engel curve approach," Australian Economic Papers, Wiley Blackwell, vol. 62(1), pages 149-184, March.
    15. Lovo, Stefania & Veronesi, Marcella, 2019. "Crop Diversification and Child Health: Empirical Evidence From Tanzania," Ecological Economics, Elsevier, vol. 158(C), pages 168-179.
    16. Di Falco, Salvatore & Bezabih, Mintewab & Yesuf, Mahmud, 2010. "Seeds for livelihood: Crop biodiversity and food production in Ethiopia," Ecological Economics, Elsevier, vol. 69(8), pages 1695-1702, June.
    17. Zdeňka Žáková Kroupová & Lukáš Čechura & Matěj Opatrný & Zuzana Hloušková & Iveta Mlezivová, 2023. "Assessment of the impact of agricultural support on crop diversity," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 69(3), pages 89-100.
    18. Martey, Edward & Etwire, Prince M. & Atinga, David & Yevu, Mawuli, 2021. "Household energy choice for cooking among the time and consumption poor in Ghana," Energy, Elsevier, vol. 226(C).
    19. Ali M. Oumer & Michael Burton & Atakelty Hailu & Amin Mugera, 2020. "Sustainable agricultural intensification practices and cost efficiency in smallholder maize farms: Evidence from Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 51(6), pages 841-856, November.
    20. Paudel, Jayash, 2021. "Why Are People Energy Poor? Evidence From Ethnic Fractionalization," Energy Economics, Elsevier, vol. 102(C).

    More about this item

    Keywords

    Energy poverty; Crop diversification; Household income; Lewbel 2SLS; Ghana;
    All these keywords.

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

    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:enepol:v:165:y:2022:i:c:s030142152200177x. 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/enpol .

    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.