IDEAS home Printed from https://ideas.repec.org/p/rza/ersawp/163.html

Institutional Quality: A hurdle or a catalyst to eliminating energy poverty in sub-Saharan Africa?

Author

Listed:
  • Kritzinger W.

    (University of Pretoria)

  • Prof. Inglesi-Lotz R.

    (University of Pretoria)

  • Dr. Bohlmann J.

    (University of Pretoria)

  • Prof. Graham V.

    (University of Johannesburg)

  • Dr. Senyonga L.

    (Makerere University Business School)

  • Prof. Ramoelo A.

    (South African National Space Agency)

Abstract

Energy poverty is considered a significant challenge in sub-Saharan Africa (SSA), significantly impeding economic growth and social development. This study examines the role of institutional quality in addressing energy poverty across 45 SSA countries from 2002 to 2022, focusing on two critical indicators: access to clean cooking technologies and fuels and access to electricity. This study explores six institutional quality indicators—Control of Corruption, Regulatory Quality, Government Effectiveness, Rule of Law, Voice and Accountability, and Political Stability—and finds that corruption control is a key factor in reducing energy poverty across various income groups. Political stability is also linked to lower access to clean cooking, while the rule of law supports electricity access. Additionally, urbanisation is identified as a crucial factor for improving electricity access. This study underscores the central role of institutional quality in addressing energy poverty in SSA and calls for further research that includes infrastructure investment, affordability, and sustainability to better understand the complexities of energy access challenges in SSA.

Suggested Citation

  • Kritzinger W. & Prof. Inglesi-Lotz R. & Dr. Bohlmann J. & Prof. Graham V. & Dr. Senyonga L. & Prof. Ramoelo A., 2025. "Institutional Quality: A hurdle or a catalyst to eliminating energy poverty in sub-Saharan Africa?," ERSA Working Paper Series 163, Economic Research Southern Africa.
  • Handle: RePEc:rza:ersawp:163
    as

    Download full text from publisher

    File URL: https://ersawps.org/index.php/working-paper-series/article/view/163/172
    File Function: First version, 2025
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    2. 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.
    3. Nguyen, Canh Phuc & Su, Thanh Dinh, 2022. "The influences of government spending on energy poverty: Evidence from developing countries," Energy, Elsevier, vol. 238(PA).
    4. Garrone, Paola & Piscitello, Lucia & D'Amelio, Matilde, 2019. "Multinational Enterprises and the Provision of Collective Goods in Developing Countries under Formal and Informal Institutional Voids. The Case of Electricity in Sub-Saharan Africa," Journal of International Management, Elsevier, vol. 25(2), pages 1-1.
    5. Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2007. "Enhanced routines for instrumental variables/generalized method of moments estimation and testing," Stata Journal, StataCorp LLC, vol. 7(4), pages 465-506, December.
    6. Stritzke, Susann & Trotter, Philipp A. & Twesigye, Peter, 2021. "Towards responsive energy governance: Lessons from a holistic analysis of energy access in Uganda and Zambia," Energy Policy, Elsevier, vol. 148(PA).
    7. 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).
    8. 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.
    9. María Gabriela González Bautista & Eduardo Germán Zurita Moreano & Juan Pablo Vallejo Mata & Magda Francisca Cejas Martinez, 2024. "How Do Remittances Influence the Mitigation of Energy Poverty in Latin America? An Empirical Analysis Using a Panel Data Approach," Economies, MDPI, vol. 12(2), pages 1-26, February.
    10. Hashem Pesaran, M. & Yamagata, Takashi, 2008. "Testing slope homogeneity in large panels," Journal of Econometrics, Elsevier, vol. 142(1), pages 50-93, January.
    11. Manoel Bittencourt, 2012. "Democracy, populism and hyperinflation: some evidence from Latin America," Economics of Governance, Springer, vol. 13(4), pages 311-332, December.
    12. 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.
    13. Siddiqui, Danish Ahmed & Ahmed, Qazi Masood, 2013. "The effect of institutions on economic growth: A global analysis based on GMM dynamic panel estimation," Structural Change and Economic Dynamics, Elsevier, vol. 24(C), pages 18-33.
    14. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    15. Adom, Philip Kofi & Amuakwa-Mensah, Franklin & Agradi, Mawunyo Prosper & Nsabimana, Aimable, 2021. "Energy poverty, development outcomes, and transition to green energy," Renewable Energy, Elsevier, vol. 178(C), pages 1337-1352.
    16. Aluko, Olufemi Adewale & Opoku, Eric Evans Osei & Ibrahim, Muazu & Kufuor, Nana Kwabena, 2023. "Put on the light! Foreign direct investment, governance and access to electricity," Energy Economics, Elsevier, vol. 119(C).
    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. repec:rza:ersawp:v::y:2025:i::id:163 is not listed on IDEAS
    2. Viglioni, Marco Túlio Dinali & Calegario, Cristina Lelis Leal & Ferreira, Manuel Portugal, 2025. "Exploring the link between renewable energy policy and foreign direct investment in promoting renewable energy in Belt and Road Initiative countries," Renewable Energy, Elsevier, vol. 246(C).
    3. Opoku, Eric Evans Osei & Kufuor, Nana Kwabena & Manu, Sylvester Adasi, 2021. "Gender, electricity access, renewable energy consumption and energy efficiency," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    4. Hassan, Sonia & Haris, Muhammad, 2026. "Energy poverty and wealth under economic and energy policy uncertainty," Energy Policy, Elsevier, vol. 216(C).
    5. Avom, Désire & Bangaké, Chrysost & Kamguia, Brice, 2024. "Does capital flight set Africa as the seat of darkness? Linking capital flight and energy poverty," Energy, Elsevier, vol. 308(C).
    6. 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).
    7. Ajanaku, B.A. & Collins, A.R., 2021. "Economic growth and deforestation in African countries: Is the environmental Kuznets curve hypothesis applicable?," Forest Policy and Economics, Elsevier, vol. 129(C).
    8. MaleK Abaab & Mohamed Drira & Kamel Helali, 2026. "Artificial intelligence and economic growth in G20 economies: investigating nonlinear effects through a GMM method," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 13(1), pages 1-23, December.
    9. Shreya Pal, 2024. "The International Capital Flows and Domestic Savings–domestic Investment Nexus: A Comparative Evidence Between Heterogeneous Developing Regions," South Asian Journal of Macroeconomics and Public Finance, , vol. 13(2), pages 169-212, December.
    10. Chung, Changwoo & Kim, Jinsoo, 2024. "Greenflation, a myth or fact? Empirical evidence from 26 OECD countries," Energy Economics, Elsevier, vol. 139(C).
    11. Mamkhezri, Jamal, 2025. "Assessing price elasticity in US residential electricity consumption: A comparison of monthly and annual data with recession implications," Energy Policy, Elsevier, vol. 200(C).
    12. Huri Gül Aybudak & Waqar Khalid, 2026. "Testing the pollution paradise hypothesis and the pollution halo hypothesis in the top-10 CO2-emitting Asia-Pacific economies: evidence from the MMQR and system GMM methods," SN Business & Economics, Springer, vol. 6(5), pages 1-31, May.
    13. Abaab, Malek & Drira, Mohamed & Helali, Kamel, 2025. "Regime-switching model estimates the impact of bank liquidity on bank performance across G20 countries: a moderate role for solvency, total loans, and total debt," The Journal of Economic Asymmetries, Elsevier, vol. 32(C).
    14. Brice Kamguia & Ronald Djeunankan & Sosson Tadadjeu & Henri Njangang, 2024. "Does macroeconomic instability hamper access to electricity? Evidence from developing countries," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 32(2), pages 387-414, April.
    15. Delwar Hossain, 2014. "Differential Impacts of Foreign Capital and Remittance Inflows on Domestic Savings in the Developing Countries: A Dynamic Heterogeneous Panel Analysis," Departmental Working Papers 2014-07, The Australian National University, Arndt-Corden Department of Economics.
    16. Ibrahim Mohamed Ali Ali & Sherine Boshra Ghaly, 2026. "Structural changes and environmental degradation: new insights from a nonparametric approach," Economic Change and Restructuring, Springer, vol. 59(2), pages 1-38, April.
    17. Waqas & Dilawar Khan & Róbert Magda, 2022. "The Impact of Forest Wood Product Exports on Environmental Performance in Asia," Sustainability, MDPI, vol. 14(20), pages 1-14, October.
    18. Olfa Zarrad & Hamdi Becha & Maha Kalai & Kamel Helali, 2026. "Geopolitical risk and financial development: nonlinear effects on renewable energy in emerging economies," Quality & Quantity: International Journal of Methodology, Springer, vol. 60(2), pages 6973-7025, April.
    19. Ryan H. Murphy & Colin O’Reilly, 2019. "Applying panel vector autoregression to institutions, human capital, and output," Empirical Economics, Springer, vol. 57(5), pages 1633-1652, November.
    20. Hossain, Mohammad Razib & Rao, Amar & Sharma, Gagan Deep & Dev, Dhairya & Kharbanda, Aeshna, 2024. "Empowering energy transition: Green innovation, digital finance, and the path to sustainable prosperity through green finance initiatives," Energy Economics, Elsevier, vol. 136(C).
    21. Mendiratta, Anita & Singh, Shveta & Yadav, Surendra S. & Mahajan, Arvind, 2026. "Relationship between firm value, environment, social, and governance – Strengths and controversies," Global Finance Journal, Elsevier, vol. 69(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government

    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:rza:ersawp:163. 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: Maggi Sigg (email available below). General contact details of provider: https://ersawps.org/index.php/working-paper-series/ .

    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.