Does energy poverty affect the well-being of people: Evidence from Ghana

Deemed as a multifaceted problem, energy poverty results in multiple forms of vulnerabilities. Using data on Ghana, we test the social vulnerability aspect of energy poverty by estimating its effect on subjective social status. Instrumenting energy poverty with energy prices, we observe a quadratic (Ushaped) relationship between multidimensional energy poverty and social status. This relationship is consistent across rural-urban and male-headed subgroups. Thus, further deprivation in modern energy services does not deteriorate one's social image but rather enhances it. Additionally, we find household income and education as essential channels through which energy poverty affects subjective social status. With existing global policies currently running to eradicate energy poverty, other approaches that aim to increase household income and education can reinforce each other to enhance the social image and increase household energy access. (C) 2021 Institution of Chemical Engineers. Published by Elsevier B.V. All rights reserved.