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Income and energy usage in developing economies: using the case of Ghana

In: Research Handbook on Poverty and Inequality

Author

Listed:
  • Kenneth Ofori-Boateng
  • Williams Ohemeng
  • Innocent Tetteh
  • Elvis Kwame Agyapong

Abstract

This chapter evaluates the effect of income differentials on energy usage across urban and rural areas in Ghana. Tobit regression is used sourcing data from the Ghana Living Standard Survey 7. Results indicate that income has a positive impact on fuel consumption for households in Ghana, with an inverted-U-shaped relationship between income and fuel consumption. Households from rural areas spend less on fuel as compared to those from urban areas, confirming that rural dwellers, who are generally poorer, have more limited access to fuel. The government can increase the accessibility of modern fuels such as electricity and gas especially for the rural poor via cash or in-kind transfers toward expenditure on sustainable modern fuels.

Suggested Citation

  • Kenneth Ofori-Boateng & Williams Ohemeng & Innocent Tetteh & Elvis Kwame Agyapong, 2023. "Income and energy usage in developing economies: using the case of Ghana," Chapters, in: Udaya R. Wagle (ed.), Research Handbook on Poverty and Inequality, chapter 24, pages 422-438, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:20521_24
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