Are energy-poor households also poor? Evidence from Ghana

AbstractPoverty and energy poverty are parts of the Sustainable Development Goals (SDGs). The former has been extensively covered in the literature, whereas the latter has not been given the necessary attention until the last decade. In this paper, we use multidimensional measures of energy poverty and poverty to ascertain whether energy‐poor households are also poor, and vice versa. In addition, the study seeks to examine the factors responsible for poverty and energy poverty. This paper uses data sets constructed from the two most recent nationwide household surveys in Ghana (GLSS VI and GLSS VII samples). We find substantial differences in the incidence and index of multidimensional energy poverty and multidimensional poverty by subgroup demographic characteristics. Further, we find that households belong to different categories of poverty and energy poverty status. Our multinomial regression results reveal that household size, marital status, educational background, residential area, age, employment, and gender significantly predict the household's multidimensional poverty and energy poverty status. We recommend massive investment in renewable energy, to make cleaner energy readily available for Ghanaians. In addition, the Ghanaian government should pursue sustainable employment and job creation avenues, directed toward an improved standard of living for the population.