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The impact of microfinance on energy access: a case study from peripheral districts of Lomé, Togo

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  • Mohamed Amine Boutabba
  • Diadié Diaw
  • Amandine Laré
  • Albert Lessoua

Abstract

This study seeks to understand the impact of microfinance on energy access in the peripheral districts of Lomé in Togo. We use descriptive statistics, multiple regression, propensity score matching and treatment effect models, involving 639 microfinance client and non-client households for the analysis. Our results show that microfinance reduces energy vulnerability, with microfinance clients having higher energy poverty indices and energy expenditures than non-client households. Based on the impact of microfinance on energy poverty reduction, we argue that it is important for policymakers to implement strategies that promote and create greater access to microfinance, as this has the potential to alleviate energy poverty and improve access to good quality, modern energy services in Togo.

Suggested Citation

  • Mohamed Amine Boutabba & Diadié Diaw & Amandine Laré & Albert Lessoua, 2020. "The impact of microfinance on energy access: a case study from peripheral districts of Lomé, Togo," Applied Economics, Taylor & Francis Journals, vol. 52(45), pages 4927-4951, September.
    • Handle: RePEc:taf:applec:v:52:y:2020:i:45:p:4927-4951
    DOI: 10.1080/00036846.2020.1751800
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    Cited by:

    1. Simplice A. Asongu & Nicholas M. Odhiambo, 2023. "The role of financial inclusion in moderating the incidence of entrepreneurship on energy poverty in Ghana," Working Papers of the African Governance and Development Institute. 23/035, African Governance and Development Institute..
    2. Simplice A. Asongu & Amarachi O. Ogbonna & Mariette C. N. Mete, 2024. "Marriage as an argument for energy poverty reduction: the moderating role of financial inclusion," Working Papers of the African Governance and Development Institute. 24/031, African Governance and Development Institute..
    3. Wang, Xiong & Yang, Wanping & Ren, Xiaohang & Lu, Zudi, 2023. "Can financial inclusion affect energy poverty in China? Evidence from a spatial econometric analysis," International Review of Economics & Finance, Elsevier, vol. 85(C), pages 255-269.
    4. Dong, Kangyin & Taghizadeh-Hesary, Farhad & Zhao, Jun, 2022. "How inclusive financial development eradicates energy poverty in China? The role of technological innovation," Energy Economics, Elsevier, vol. 109(C).
    5. Asankha Pallegedara & Ajantha Sisira Kumara, 2022. "Impacts of firewood burning for cooking on respiratory health and healthcare utilisation: Empirical evidence from Sri Lankan micro‐data," International Journal of Health Planning and Management, Wiley Blackwell, vol. 37(1), pages 465-485, January.
    6. Koomson, Isaac & Danquah, Michael, 2021. "Financial inclusion and energy poverty: Empirical evidence from Ghana," Energy Economics, Elsevier, vol. 94(C).

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