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Electricity Consumption and Standard of Living: Evidence from Selected African Countries

Chioma Ogazile Woke, Victor Akidi, Chukwuemeka Sydney Reginald Ozuzu,

Abstract

This study investigated how electricity consumption indicators over the sampled period of 1995 to 2025 influenced standard of living in selected African countries by measuring electricity consumption using electricity consumption per capita, total electricity net consumption, energy intensity and access to electricity on per capita income as the indicator for standard of living. Geographically, the study concentrated on six selected African economies which are; Nigeria, Ghana, Angola, Egypt, Algeria and Libya. Secondary data for the countries were sourced from the World Development Indicators of the World Bank, Africa Energy Portal , and International Energy Agency , and were analyzed by applying the Panel Least Square regression technique following confirmation of stationarity through the Im, Pesaran and Shin, and Levin, Lin and Chu panel unit root tests, and selection of the Random Effects estimator on the strength of the Hausman specification analysis. The estimates established that electricity consumption per capita, its total net consumption, energy intensity and electricity access exerted positive and statistically significant effects on standard of living in the African countries. It is therefore highlighted that, improved electricity consumption and reliable access are critical for spurring per capita income and by extension, living standards in Africa. Thus, it is among others, emphasized that governments in African countries should prioritize investment in aging and new electricity infrastructure to enhance generation, transmission and reliable distribution capacities, which will in turn support industrial activities, stimulate business growth, creating employment opportunities, enhance household incomes and ultimately improving African’s standard of living.

Keywords

Electricity consumptionstandard of livingper capita incomeaccess to electricityenergy intensitypanel dataAfrica JEL Classification: Q43I31

References

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