Bridging the energy gap: Macro-drivers of access-based energy poverty in West Africa

Abstract

In 2022, approximately 694 million people worldwide lacked access to electricity, with 29 % living in West Africa. This elevated level of access-based energy poverty (AB-EP) highlights the need to understand its driving factors in the region. While micro-level studies on AB-EP are abundant, macro-level assessments are limited, particularly for West Africa. Furthermore, existing studies often lack robust methods for constructing AB-EP indices and handling panel data. This study addresses these gaps by exploring the impact of macroeconomic factors on AB-EP in West Africa. We utilized a new AB-EP index containing clean energy and technology and a panel-corrected standard error estimator to address data issues. The findings demonstrate that domestic macroeconomic factors such as energy intensity, urbanization, and income are the primary causes of AB-EP in West Africa. In contrast, external macroeconomic factors (official development assistance, external debt, trade, remittances, and foreign direct investment) have a negligible influence. This result underscores the need for local solutions. Policymakers should focus on sustainable urban development, improving energy efficiency, and enhancing per capita income, as these factors contribute significantly to reducing AB-EP. Furthermore, trade and financial inflow policies should strategically be directed to enhance West Africa's energy access.