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Financial inclusion and energy poverty reduction in sub-Saharan Africa

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  • Said, Rabie
  • Acheampong, Alex O.

Abstract

This study examines the relationship between financial inclusion and energy poverty reduction, proxied with access to electricity and clean cooking technologies and fuels, using data from 23 Sub-Saharan African (SSA) countries from 2004 to 2019. Evidence from dynamic ordinary least squares, fully modified ordinary least squares, and canonical correlation regression techniques showed that financial inclusion significantly reduces energy poverty in SSA. However, financial inclusion's impact on energy poverty reduction differs significantly among individual SSA countries. We recommend that policies promoting financial inclusion would reduce energy poverty.

Suggested Citation

  • Said, Rabie & Acheampong, Alex O., 2023. "Financial inclusion and energy poverty reduction in sub-Saharan Africa," Utilities Policy, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:juipol:v:82:y:2023:i:c:s0957178723000796
    DOI: 10.1016/j.jup.2023.101567
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    Cited by:

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    3. Xie, Xin & Barut, Abdulkadir & Mohammed, Kamel Si & Torusdağ, Mustafa, 2024. "Empowering energy access: Exploring financial inclusion's impact on energy poverty in the fragile five economies," Energy, Elsevier, vol. 309(C).
    4. Acheampong, Alex O. & Said, Rabie, 2024. "Financial inclusion and the global net-zero emissions agenda: Does governance quality matter?," Energy Economics, Elsevier, vol. 137(C).
    5. Acheampong, Alex O. & Nghiem, Xuan-Hoa & Dzator, Janet & Rajaguru, Gulasekaran, 2023. "Promoting energy inclusiveness: Is rural energy poverty a political failure?," Utilities Policy, Elsevier, vol. 84(C).
    6. Tao, Miaomiao & Lin, Boqiang & Poletti, Stephen & Pan, Addison, 2024. "Can financial literacy Ease energy poverty? Some Lessons at the household level in China," Utilities Policy, Elsevier, vol. 91(C).
    7. Maket, Isaiah, 2024. "Rethinking energy poverty alleviation through financial inclusion: Do institutional quality and climate change risk matter?," Utilities Policy, Elsevier, vol. 91(C).
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    9. Zahonogo, Windbeneti Arnaud, 2025. "Do tariff reductions alleviate energy poverty? Evidence for Sub-Saharan African countries," Energy Policy, Elsevier, vol. 197(C).

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    More about this item

    Keywords

    Financial inclusion; Energy poverty; Sub-saharan africa; Panel data;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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