Powering progress: Bridging energy inequality and energy poverty in Africa

Nguyet T.M. Tran and Trung Thanh Nguyen

Energy Economics, 2025, vol. 150, issue C

Abstract: Ensuring universal access to affordable, reliable, and modern energy services is the seventh United Nations Sustainable Development Goal. However, energy poverty and unequal access to energy remain significant challenges, hindering energy transition in several African countries. This study investigates the patterns of energy transition and factors associated with energy consumption, energy poverty, and the use of solar panels in four African countries, namely Ethiopia, Malawi, Nigeria, and Uganda. We utilize data from multiple survey waves (2010–2019) of the World Bank's Living Standards Measurement Study- Integrated Surveys on Agriculture (LSMS-ISA). Energy poverty is measured via multidimensional and low-income high-cost (LIHC) approaches, while energy inequality is measured via the Gini coefficient and Lorenz curve. Various econometric specifications are employed to identify factors associated with energy consumption, energy poverty and the use of solar panels. Our results indicate that (i) there are signs of an ongoing energy transition in these countries, demonstrated by the increasing use of electricity and expenditure on it, as well as the greater use of solar panels for cooking and lighting. However, the share of households relying on charcoal and firewood has grown, particularly in Malawi, Uganda, and Ethiopia. Spending on oil has declined in all countries; (ii) a decrease in energy poverty over time, though it remains high; (iii) energy inequality is on a downward trend, whereas rising oil consumption inequality; and (iv) education, literacy and off-farm self-employment engagement are negatively associated with energy poverty but positively associated with clean energy use, including electricity and solar panels. To facilitate the energy transition, promoting education and non-farm employment is recommended. Additionally, targeted support for poor and rural families is essential to further reduce energy poverty and energy inequality.

Keywords: Low-income high-cost (LIHC); Multidimensional poverty index (MEPI); Solar energy; Lorenz curve; Regression; Panel data (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:150:y:2025:i:c:s0140988325006632

DOI: 10.1016/j.eneco.2025.108836

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