WHAT DRIVES HOUSEHOLD ELECTRICITY CHOICE? EVIDENCE FROM NORTHERN GHANA

Abstract

Plan, Sustainable Energy for All Action Plan, the Ghana Energy Development and Access Project and Energy Sector Strategy and Development Plan is the energy sector vision which advocates for accessible energy for all households in Ghana. This paper investigates the factors that influence households’ choice of modern electricity in the West Mampurisi District of Ghana using a household survey data. Multi-stage sampling procedure was used to obtain 295 households for the study. The underlying empirical model was estimated using the Probit model. Contrary to widely held beliefs, the results of the Probit model revealed that cattle ownership which is a proxy for wealth/income is not a key determinant of household energy connectivity. Significant and positive variables included tenancy type, radio, TV and fridge ownership, perception about electricity, duration and cost of use of electricity. Government can support the development of alternative energy sources such as renewable energy or promote the entry of multiple players into the generation market to reduce the cost of supplying utility power to the rural communities, thus enabling affordability by every household.