Disbursing emergency relief through utilities: Evidence from Ghana

Susanna Berkouwer, Pierre E. Biscaye, Steven Puller () and Catherine D. Wolfram

Journal of Development Economics, 2022, vol. 156, issue C

Abstract: We provide descriptive evidence on the challenges in efficiently, effectively, and fairly distributing in-kind electricity transfers to households. We collect panel data from 1200 households eligible for Ghana’s COVID-19 electricity relief program. Distributing relief through electricity transfers enabled an immediate response to the crisis. Theoretical efficiency concerns are mitigated because transfers were inframarginal and storable for most households. Transfer receipt may have increased support for the governing party, possibly due to obfuscation of the program’s financial burden. However, the program was regressive in design, and implementation challenges – delays, technological hurdles, information constraints, and the targeting of meters rather than households – add to inefficiency and regressivity. Households receiving the least average relief are those who use less electricity, pay a landlord or other intermediary for electricity, or share an electricity meter—characteristics of low-income households. Program implementation challenges were just as important as design features in determining program costs and benefits.

Keywords: Development policy implementation; Energy economics; Evaluation of government policy; Energy subsidies; Ghana; Covid-19 relief programs (search for similar items in EconPapers)
JEL-codes: D04 H23 L94 O12 O13 Q48 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:deveco:v:156:y:2022:i:c:s0304387822000086

DOI: 10.1016/j.jdeveco.2022.102826

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