IDEAS home Printed from https://ideas.repec.org/a/eee/juipol/v84y2023ics0957178723001510.html

Promoting energy inclusiveness: Is rural energy poverty a political failure?

Author

Listed:
  • Acheampong, Alex O.
  • Nghiem, Xuan-Hoa
  • Dzator, Janet
  • Rajaguru, Gulasekaran

Abstract

We examine the impact of democracy and governance on rural electrification and rural access to clean fuels and technologies for cooking using comprehensive panel data of 34 countries from Latin America and the Caribbean between 2000 and 2020. Evidence from heteroskedasticity-based instrumental variable regression revealed that governance improves rural electrification and rural access to clean cooking fuels and technologies, while democracy of different forms limits rural electrification and rural access to clean cooking fuels and technologies. We suggest that better governance ensures justice in providing and allocating essential public services such as electricity and clean cooking solutions, not democracy.

Suggested Citation

  • Acheampong, Alex O. & Nghiem, Xuan-Hoa & Dzator, Janet & Rajaguru, Gulasekaran, 2023. "Promoting energy inclusiveness: Is rural energy poverty a political failure?," Utilities Policy, Elsevier, vol. 84(C).
  • Handle: RePEc:eee:juipol:v:84:y:2023:i:c:s0957178723001510
    DOI: 10.1016/j.jup.2023.101639
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0957178723001510
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jup.2023.101639?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. Boräng, Frida & Jagers, Sverker C. & Povitkina, Marina, 2016. "Political determinants of electricity provision in small island developing states," Energy Policy, Elsevier, vol. 98(C), pages 725-734.
    2. repec:aen:journl:ej44-2-nepal is not listed on IDEAS
    3. Martin C. McGuire & Mancur Olson, 1998. "The Economics of Autocracy and Majority Rule: The Invisible Hand and the Use of Force," International Economic Association Series, in: Silvio Borner & Martin Paldam (ed.), The Political Dimension of Economic Growth, chapter 3, pages 38-73, Palgrave Macmillan.
    4. 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.
    5. Giacomo Falchetta & Simone Tagliapietra, 2022. "Economics of Access to Energy," Springer Books, in: Manfred Hafner & Giacomo Luciani (ed.), The Palgrave Handbook of International Energy Economics, chapter 0, pages 567-594, Springer.
    6. Oum, Sothea, 2019. "Energy poverty in the Lao PDR and its impacts on education and health," Energy Policy, Elsevier, vol. 132(C), pages 247-253.
    7. Giacomo Falchetta & Simone Tagliapietra, . "Economics of access to energy," Bruegel Book, Bruegel, number node_7813, May.
    8. Rodriguez-Alvarez, Ana & Llorca, Manuel & Jamasb, Tooraj, 2021. "Alleviating energy poverty in Europe: Front-runners and laggards," Energy Economics, Elsevier, vol. 103(C).
    9. Deacon, Robert, 2003. "Dictatorship, Democracy, and the Provision of Public Goods," University of California at Santa Barbara, Economics Working Paper Series qt9h54w76c, Department of Economics, UC Santa Barbara.
    10. Acheampong, Alex O., 2023. "Governance, credit access and clean cooking technologies in Sub-Saharan Africa: Implications for energy transition," Journal of Policy Modeling, Elsevier, vol. 45(2), pages 445-468.
    11. Ahlborg, Helene & Boräng, Frida & Jagers, Sverker C. & Söderholm, Patrik, 2015. "Provision of electricity to African households: The importance of democracy and institutional quality," Energy Policy, Elsevier, vol. 87(C), pages 125-135.
    12. Zhang, Xiaobo & Fan, Shenggen & Zhang, Linxiu & Huang, Jikun, 2004. "Local governance and public goods provision in rural China," Journal of Public Economics, Elsevier, vol. 88(12), pages 2857-2871, December.
    13. Rehman, I.H. & Kar, Abhishek & Banerjee, Manjushree & Kumar, Preeth & Shardul, Martand & Mohanty, Jeevan & Hossain, Ijaz, 2012. "Understanding the political economy and key drivers of energy access in addressing national energy access priorities and policies," Energy Policy, Elsevier, vol. 47(S1), pages 27-37.
    14. Acheampong, Alex O. & Erdiaw-Kwasie, Michael Odei & Abunyewah, Matthew, 2021. "Does energy accessibility improve human development? Evidence from energy-poor regions," Energy Economics, Elsevier, vol. 96(C).
    15. Pan, Lei & Biru, Ashenafi & Lettu, Sandra, 2021. "Energy poverty and public health: Global evidence," Energy Economics, Elsevier, vol. 101(C).
    16. Verena Kroth & Valentino Larcinese & Joachim Wehner, 2016. "A Better Life for All? Democratization and Electrification in Post-Apartheid South Africa," STICERD - Economic Organisation and Public Policy Discussion Papers Series 60, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    17. Ahlborg, Helene & Hammar, Linus, 2014. "Drivers and barriers to rural electrification in Tanzania and Mozambique – Grid-extension, off-grid, and renewable energy technologies," Renewable Energy, Elsevier, vol. 61(C), pages 117-124.
    18. Acheampong, Alex O. & Shahbaz, Muhammad & Dzator, Janet & Jiao, Zhilun, 2022. "Effects of income inequality and governance on energy poverty alleviation: Implications for sustainable development policy," Utilities Policy, Elsevier, vol. 78(C).
    19. Olken, Benjamin A., 2010. "Direct Democracy and Local Public Goods: Evidence from a Field Experiment in Indonesia," American Political Science Review, Cambridge University Press, vol. 104(2), pages 243-267, May.
    20. Said, Rabie & Acheampong, Alex O., 2023. "Financial inclusion and energy poverty reduction in sub-Saharan Africa," Utilities Policy, Elsevier, vol. 82(C).
    21. Aklin, Michaël & Harish, S.P. & Urpelainen, Johannes, 2018. "A global analysis of progress in household electrification," Energy Policy, Elsevier, vol. 122(C), pages 421-428.
    22. Acheampong, Alex O. & Opoku, Eric Evans Osei & Dzator, Janet, 2022. "Does democracy really improve environmental quality? Empirical contribution to the environmental politics debate," Energy Economics, Elsevier, vol. 109(C).
    23. Acemoglu,Daron & Robinson,James A., 2009. "Economic Origins of Dictatorship and Democracy," Cambridge Books, Cambridge University Press, number 9780521671422, Enero-Abr.
    24. Daron Acemoglu & Simon Johnson, 2005. "Unbundling Institutions," Journal of Political Economy, University of Chicago Press, vol. 113(5), pages 949-995, October.
    25. Abbott, Malcolm, 2001. "Is the Security of Electricity Supply a Public Good?," The Electricity Journal, Elsevier, vol. 14(7), pages 31-33.
    26. Margrethe Winslow, 2005. "Is Democracy Good for the Environment?," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 48(5), pages 771-783.
    27. Obermaier, Martin & Szklo, Alexandre & La Rovere, Emilio Lèbre & Pinguelli Rosa, Luiz, 2012. "An assessment of electricity and income distributional trends following rural electrification in poor northeast Brazil," Energy Policy, Elsevier, vol. 49(C), pages 531-540.
    28. Douglass C. North, 2025. "Institutions and the Performance of Economies Over Time," Springer Books, in: Claude Ménard & Mary M. Shirley (ed.), Handbook of New Institutional Economics, edition 0, chapter 2, pages 25-35, Springer.
    29. Shi, Xunpeng & Liu, Xiying & Yao, Lixia, 2016. "Assessment of instruments in facilitating investment in off-grid renewable energy projects," Energy Policy, Elsevier, vol. 95(C), pages 437-446.
    30. Rohan Best & Paul J. Burke, 2017. "The Importance of Government Effectiveness for Transitions toward Greater Electrification in Developing Countries," Energies, MDPI, vol. 10(9), pages 1-17, August.
    31. Zhang, Tong & Shi, Xunpeng & Zhang, Dayong & Xiao, Junji, 2019. "Socio-economic development and electricity access in developing economies: A long-run model averaging approach," Energy Policy, Elsevier, vol. 132(C), pages 223-231.
    32. Daron Acemoglu & Simon Johnson & James A. Robinson & Pierre Yared, 2008. "Income and Democracy," American Economic Review, American Economic Association, vol. 98(3), pages 808-842, June.
    33. Mishra, Vinod & Smyth, Russell, 2015. "Estimating returns to schooling in urban China using conventional and heteroskedasticity-based instruments," Economic Modelling, Elsevier, vol. 47(C), pages 166-173.
    34. Daron Acemoglu & Simon Johnson & James A. Robinson, 2002. "Reversal of Fortune: Geography and Institutions in the Making of the Modern World Income Distribution," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(4), pages 1231-1294.
    35. Acemoglu, Daron & Johnson, Simon & Robinson, James A., 2005. "Institutions as a Fundamental Cause of Long-Run Growth," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 6, pages 385-472, Elsevier.
    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. Opoku, Eric Evans Osei & Acheampong, Alex O. & Aluko, Olufemi Adewale, 2024. "Impact of rural-urban energy equality on environmental sustainability and the role of governance," Journal of Policy Modeling, Elsevier, vol. 46(2), pages 304-335.
    2. Yan, Aqian & Luo, Xiaofeng & Zhang, Junbiao & Tang, Lin, 2024. "Does internet use promote clean energy use for cooking by women-headed rural households in China?," Utilities Policy, Elsevier, vol. 86(C).
    3. Zhao, Lei & Zhang, Manchao & Yang, Hao & Zhang, Haixia, 2025. "Elderly care and clean cooking energy use in rural households: A financially supported perspective," Energy, Elsevier, vol. 322(C).
    4. Huang, Yongming & Abbas, Qaiser & Sharif, Muhammad, 2025. "Addressing agricultural energy poverty to enhance farmers' profitability and productivity: Policy interventions for global food security challenges," Energy Policy, Elsevier, vol. 206(C).
    5. Shittu, Ibrahim & Abdul Latiff, Abdul Rais Bin & Baharudin, Siti 'Aisyah, 2024. "Closing the clean cooking gap: Which policies and institutional qualities matter?," Energy Policy, Elsevier, vol. 185(C).
    6. Nuta, Alina Cristina & Abban, Olivier Joseph & Ayad, Hicham & Nuta, Florian Marcel, 2025. "Role of financial development and inclusivity in moderating the environmental effects of human development," Research in International Business and Finance, Elsevier, vol. 73(PA).
    7. Aleksy Kwilinski & Oleksii Lyulyov & Tetyana Pimonenko, 2024. "Energy Poverty and Democratic Values: A European Perspective," Energies, MDPI, vol. 17(12), pages 1-23, June.
    8. Dongli Chen & Qianxuan Huang, 2024. "The New Policy for Innovative Transformation in Regional Industrial Chains, the Conversion of New and Old Kinetic Energy, and Energy Poverty Alleviation," Energies, MDPI, vol. 17(11), pages 1-37, May.
    9. Rustagi, Niharika & Opoku, Eric Evans Osei & Acheampong, Alex O., 2024. "Does gender diversity in politics improve access to electricity and electrification inequality? A global analysis," Energy Economics, Elsevier, vol. 131(C).
    10. Messie Pondie, Thierry & Engwali, FON Dorothy & Ongo Nkoa, Bruno Emmanuel & Noubissi Domguia, Edmond, 2024. "Energy poverty and respiratory health in Sub-Saharan Africa: Effects and transmission channels," Energy, Elsevier, vol. 297(C).
    11. 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).

    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. Acheampong, Alex O. & Shahbaz, Muhammad & Dzator, Janet & Jiao, Zhilun, 2022. "Effects of income inequality and governance on energy poverty alleviation: Implications for sustainable development policy," Utilities Policy, Elsevier, vol. 78(C).
    2. Braunfels, Elias, 2016. "Further Unbundling Institutions," Discussion Paper Series in Economics 13/2016, Norwegian School of Economics, Department of Economics.
    3. Domguia, Edmond Noubissi & Ngounou, Borice Augustin & Pondie, Thierry Messie & Bitoto, Fabrice Ewolo, 2024. "Environmental tax and energy poverty: An economic approach for an environmental and social solution," Energy, Elsevier, vol. 308(C).
    4. Boräng, Frida & Jagers, Sverker C. & Povitkina, Marina, 2016. "Political determinants of electricity provision in small island developing states," Energy Policy, Elsevier, vol. 98(C), pages 725-734.
    5. Ahlborg, Helene & Boräng, Frida & Jagers, Sverker C. & Söderholm, Patrik, 2015. "Provision of electricity to African households: The importance of democracy and institutional quality," Energy Policy, Elsevier, vol. 87(C), pages 125-135.
    6. Acheampong, Alex O. & Dzator, Janet & Shahbaz, Muhammad, 2021. "Empowering the powerless: Does access to energy improve income inequality?," Energy Economics, Elsevier, vol. 99(C).
    7. Acheampong, Alex O. & Opoku, Eric Evans Osei & Dzator, Janet, 2022. "Does democracy really improve environmental quality? Empirical contribution to the environmental politics debate," Energy Economics, Elsevier, vol. 109(C).
    8. Rohan Best & Paul J. Burke, 2017. "The Importance of Government Effectiveness for Transitions toward Greater Electrification in Developing Countries," Energies, MDPI, vol. 10(9), pages 1-17, August.
    9. Onatunji, Olufemi Gbenga, 2024. "Towards achieving inclusive energy in SSA: The role of financial inclusion and governance quality," Energy, Elsevier, vol. 311(C).
    10. 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).
    11. Ben Cheikh, Nidhaleddine & Ben Zaied, Younes & Nguyen, Duc Khuong, 2023. "Understanding energy poverty drivers in Europe," Energy Policy, Elsevier, vol. 183(C).
    12. Zahonogo, Windbeneti Arnaud, 2025. "Do tariff reductions alleviate energy poverty? Evidence for Sub-Saharan African countries," Energy Policy, Elsevier, vol. 197(C).
    13. Ngounou, Borice Augustin & Wang, Mingsen & Zhu, Delong, 2025. "Does energy poverty undermine health spending in Africa? A comparative analysis of public and private healthcare spending," Renewable Energy, Elsevier, vol. 239(C).
    14. ROUGIER Eric, 2015. ""The parts and the whole”: Unbundling and re-bundling institutional systems and their effect on economic development," Cahiers du GREThA (2007-2019) 2015-12, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    15. Nobuhiro Mizuno & Katsuyuki Naito & Ryosuke Okazawa, 2017. "Inequality, extractive institutions, and growth in nondemocratic regimes," Public Choice, Springer, vol. 170(1), pages 115-142, January.
    16. Banerjee, Rajabrata & Mishra, Vinod & Maruta, Admasu Asfaw, 2021. "Energy poverty, health and education outcomes: Evidence from the developing world," Energy Economics, Elsevier, vol. 101(C).
    17. Zhao, Congyu & Dong, Kangyin & Nepal, Rabindra, 2026. "Can climate finance effectively address the welfare losses arising from energy poverty?," Energy Policy, Elsevier, vol. 208(C).
    18. Li-Chen Chou & Wan-Hao Zhang & Meng-Ying Wang & Fu-Ming Yang, 2020. "The influence of democracy on emissions and energy efficiency in America: New evidence from quantile regression analysis," Energy & Environment, , vol. 31(8), pages 1318-1334, December.
    19. Aguirre, Alvaro, 2016. "The risk of civil conflicts as a determinant of political institutions," European Journal of Political Economy, Elsevier, vol. 42(C), pages 36-59.
    20. Wafa Ghardallou & Dorsaf Sridi, 2020. "Democracy and Economic Growth: a Literature Review," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(3), pages 982-1002, September.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

    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:juipol:v:84:y:2023:i:c:s0957178723001510. 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: https://www.sciencedirect.com/journal/utilities-policy .

    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.