Energy demand during a pandemic: Evidence from Ghana and Rwanda

The COVID-19 pandemic caused significant disruptions to economies around the world. In response to this, some developing countries offered reliefs such as electricity subsidies while others did not. The main goal of this study is to identify the effects of the COVID pandemic on electricity consumption patterns among households and firms in Sub-Saharan Africa using unique administrative data on billing records from Ghana and Rwanda. Interestingly, the two countries offered differing policy responses to the pandemic. Based on Difference in Difference approach, the paper indicates that the pandemic led to higher consumption of electricity in both countries, albeit with variations across countries and sectors. While residential consumption soared, consumption of non-residential customers such as hotels and industries declined during the period. Specifically, electricity subsidies in Ghana explain the sharp increase in residential consumption during the pandemic. These findings highlight the potential effects of pandemic relief measures on household welfare.