Do China-financed dams in Sub-Saharan Africa improve the region's social welfare? A case study of the impacts of Ghana's Bui Dam

Keyi Tang and Yingjiao Shen

Energy Policy, 2020, vol. 136, issue C

Abstract: China has become an increasingly important financier of energy infrastructure development in the Global South, especially hydropower projects. Despite an increase in investigations on Chinese models of infrastructure financing in these regions, there is a lack of empirical research on the impacts of the China-financed infrastructure. Using data from Johns Hopkins SAIS CARI China-Africa Loan Database and the Demographic and Health Survey (DHS) Program Database, we estimate the impacts of the China-financed Bui Dam in Ghana. We use two difference-in-differences models to identify change of the likelihood to have access to electricity, and to own several electric appliances among over 29,000 local households receiving electricity transmitted from Bui Dam. We found that after the Bui Dam's completion, the likelihood for households living in the treatment regions having access to electricity increased by about 4 percent. However, our models also show that urban households witness a much higher increase in their ownership of various electric appliances, suggesting that the Bui Dam's improvement of electrification may be predominant in the urban and rich households.

Keywords: Ghana; Bui dam; China; Access to electricity; Ownership of electric appliances; Difference in differences (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:136:y:2020:i:c:s0301421519306494

DOI: 10.1016/j.enpol.2019.111062

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