The effect of mini‐grid rural electrification on urbanization: Evidence from the pilot mini‐grid systems in Ghana

Justice Gyimah, Yang Liu, George Nyantakyi and Xilong Yao

Review of Development Economics, 2024, vol. 28, issue 3, 1108-1130

Abstract: Mini‐grid electrification constitutes an increasingly important solution to universal access to energy, notably in off‐grid rural Africa. Rural electrification has important implications for mitigating the immigration trends of the rural population toward urban regions. In this study, we adopted a mediation model to investigate the direct and indirect effects of mini‐grid electrification on the urbanization process, and multivariate regression is employed as a robustness check. More specifically, with the support of a mini‐grid project in Ghana, we conducted a survey to assess the perception of the local population about the impact of rural electrification on healthcare, education, employment, and security and further examined the impact of these development outcomes on their willingness to immigrate to cities. The study's findings suggested that the development of rural electrification helped improve education, healthcare, security, and employment, significantly affecting urbanization. Our study concluded that increased electricity access through mini‐grids tends to reduce the urbanization trends in rural Ghana.

Date: 2024
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