Unconditional cash transfers and energy poverty in South Africa

Josephine Ofori Adofo and Isaac Koomson

Energy Economics, 2025, vol. 149, issue C

Abstract: There has been a rise in state-sponsored cash transfer programs in Africa, yet we know little about their potential impact on energy poverty. In this study, we investigate whether unconditional cash transfers (UCTs) reduce energy poverty. Using data from a large-scale, government-led program in South Africa, we find a 7.5 percentage point reduction in energy poverty, which works through increases in asset accumulation. The effects are substantial for female-headed households, and the results are consistent across different measures of energy poverty. Overall, the findings reveal that unconditional cash transfers (UCTs) can be considered a viable policy tool to address energy poverty.

Keywords: Unconditional cash transfers; Energy poverty; Asset accumulation; South Africa (search for similar items in EconPapers)
JEL-codes: D12 I32 I38 O13 Q41 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:149:y:2025:i:c:s0140988325006097

DOI: 10.1016/j.eneco.2025.108782

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