Fuel or power Africa? The impact of Chinese foreign aid on energy poverty

We examine the impact of Chinese foreign aid on energy poverty in 11 sub-Saharan African countries by matching data on geo-referenced Chinese aid projects with household information from the Demographic and Health Surveys. We use access to clean cooking fuels and electricity to measure energy poverty, focusing on the accessibility dimension. Using difference-in-differences estimations and propensity score matching methods, we find that Chinese aid projects improve access to clean cooking fuels, but not to electricity, in recipient countries' treatment areas. The effect of Chinese aid on energy poverty is heterogeneous across rural and urban areas. Improvements in access to clean cooking fuels have been driven directly and indirectly by Chinese aid projects. Chinese aid can improve access to clean cooking fuels through employment and education.