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Impact of official development assistance projects for renewable energy on electrification in sub-Saharan Africa

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  • Capucine Chapel

    (CESAER - Centre d'économie et de sociologie rurales appliquées à l'agriculture et aux espaces ruraux - UBFC - Université Bourgogne Franche-Comté [COMUE] - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Dijon - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement)

Abstract

While the African continent has one of the largest renewable energy potentials in the world, it remains the most deprived region for access to electricity. Official development agencies can provide the funds and experience necessary for the sustainable development of this sector to those countries that suffer from limited domestic resources. We estimate the impact of renewable energy aid projects implemented in 19 sub-Saharan African countries on access to electricity for communities in the region. By combining georeferenced data from aid projects in renewable energy from AidData and survey data from the Afrobarometer, we find, using different propensity score matching methods, a positive and significant impact of these projects on electrification of communities. A comparison with the same sample on non-renewable energy projects shows a better efficiency of eco-friendly projects. However, the effectiveness of these projects is heterogeneous and depends greatly on the type of donor, the location, and the initial level of development. Our results contribute to the scholarly debate on aid effectiveness and provide important political implications. Indeed, they suggest that international donors should favour sending funds for renewable energy projects in countries and regions lacking electrification as these funds contribute to better access to electricity while promoting environmentally friendly technologies.

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  • Capucine Chapel, 2022. "Impact of official development assistance projects for renewable energy on electrification in sub-Saharan Africa," Post-Print hal-04085797, HAL.
    • Handle: RePEc:hal:journl:hal-04085797
    DOI: 10.1016/j.worlddev.2021.105784
    Note: View the original document on HAL open archive server: https://hal.science/hal-04085797
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    References listed on IDEAS

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    1. Isaksson, Ann-Sofie & Kotsadam, Andreas, 2018. "Chinese aid and local corruption," Journal of Public Economics, Elsevier, vol. 159(C), pages 146-159.
    2. Denizer, Cevdet & Kaufmann, Daniel & Kraay, Aart, 2013. "Good countries or good projects? Macro and micro correlates of World Bank project performance," Journal of Development Economics, Elsevier, vol. 105(C), pages 288-302.
    3. Kanagawa, Makoto & Nakata, Toshihiko, 2008. "Assessment of access to electricity and the socio-economic impacts in rural areas of developing countries," Energy Policy, Elsevier, vol. 36(6), pages 2016-2029, June.
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    2. Lee, Heerae & Shon, Huijoo, 2024. "Spatial and temporal patterns of energy aid and poverty in four African countries: Focusing on distributive and recognition justice," Renewable and Sustainable Energy Reviews, Elsevier, vol. 192(C).
    3. Lisa Chauvet & Marin Ferry, 2023. "L’efficacité de l’aide : quelles évolutions de la littérature depuis deux décennies ? WP329," Working Papers hal-04141543, HAL.
    4. Coulibaly, Yacouba, 2024. "Resource-backed loans and ecological efficiency of human development: Evidence from African countries," Ecological Economics, Elsevier, vol. 224(C).
    5. Yacouba Coulibaly, 2023. "Can Resource-backed Loans Mitigate Climate Change ?," Working Papers hal-04072352, HAL.

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