Residential energy expenditures and the relevance of financial inclusion across location, wealth quintiles and household structures
This paper examines the relative role of financial inclusion in enhancing households’ ability to spend on energy consumption across rural and urban locations. It uses comprehensive household data from Ghana and employs the ordinary least square (OLS) as well as an instrumental variable estimation te...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Elsevier
2024-03-01
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| Series: | Heliyon |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2405844024027415 |
| _version_ | 1827316531668713472 |
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| author | Martinson Ankrah Twumasi Frank Adusah-Poku Alex O. Acheampong Eric Evans Osei Opoku |
| author_facet | Martinson Ankrah Twumasi Frank Adusah-Poku Alex O. Acheampong Eric Evans Osei Opoku |
| author_sort | Martinson Ankrah Twumasi |
| collection | DOAJ |
| description | This paper examines the relative role of financial inclusion in enhancing households’ ability to spend on energy consumption across rural and urban locations. It uses comprehensive household data from Ghana and employs the ordinary least square (OLS) as well as an instrumental variable estimation technique. Endogeneity of financial inclusion is instrumented using distance to the nearest bank. Our findings suggest that a standard deviation increase in financial inclusion contributes to an improvement in residential energy expenditure by 1.2835 standard deviations. This finding is robust to different methods for resolving endogeneity and alternative weighting schemes in the financial inclusion construct. Among the different sources of energy for lighting and cooking, financial inclusion increases expenditure on LPG and electricity more than the others. Financial inclusion increases the ability to spend more on residential energy in urban, poorest, and female-headed dual-parent households. Household net income is a key pathway through which financial inclusion affects residential energy expenditure. |
| first_indexed | 2024-03-07T18:36:13Z |
| format | Article |
| id | doaj.art-6b0b35b465424393a5d6da3b1411a778 |
| institution | Directory Open Access Journal |
| issn | 2405-8440 |
| language | English |
| last_indexed | 2024-04-24T23:16:10Z |
| publishDate | 2024-03-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Heliyon |
| spelling | doaj.art-6b0b35b465424393a5d6da3b1411a7782024-03-17T07:56:03ZengElsevierHeliyon2405-84402024-03-01105e26710Residential energy expenditures and the relevance of financial inclusion across location, wealth quintiles and household structuresMartinson Ankrah Twumasi0Frank Adusah-Poku1Alex O. Acheampong2Eric Evans Osei Opoku3College of Economics, Sichuan Agricultural University, Chengdu, Wenjiang, ChinaDepartment of Economics, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana; Environment and Natural Resource Research Initiative (ENRRI-EfD Ghana), Accra, GhanaBond Business School, Bond University, Gold Coast, Australia; Centre for Data Analytics, Bond University, Gold Coast, Australia; Corresponding author.Nottingham University Business School China, University of Nottingham, Ningbo, ChinaThis paper examines the relative role of financial inclusion in enhancing households’ ability to spend on energy consumption across rural and urban locations. It uses comprehensive household data from Ghana and employs the ordinary least square (OLS) as well as an instrumental variable estimation technique. Endogeneity of financial inclusion is instrumented using distance to the nearest bank. Our findings suggest that a standard deviation increase in financial inclusion contributes to an improvement in residential energy expenditure by 1.2835 standard deviations. This finding is robust to different methods for resolving endogeneity and alternative weighting schemes in the financial inclusion construct. Among the different sources of energy for lighting and cooking, financial inclusion increases expenditure on LPG and electricity more than the others. Financial inclusion increases the ability to spend more on residential energy in urban, poorest, and female-headed dual-parent households. Household net income is a key pathway through which financial inclusion affects residential energy expenditure.http://www.sciencedirect.com/science/article/pii/S2405844024027415Energy expenditureFinancial inclusionRuralGhana |
| spellingShingle | Martinson Ankrah Twumasi Frank Adusah-Poku Alex O. Acheampong Eric Evans Osei Opoku Residential energy expenditures and the relevance of financial inclusion across location, wealth quintiles and household structures Heliyon Energy expenditure Financial inclusion Rural Ghana |
| title | Residential energy expenditures and the relevance of financial inclusion across location, wealth quintiles and household structures |
| title_full | Residential energy expenditures and the relevance of financial inclusion across location, wealth quintiles and household structures |
| title_fullStr | Residential energy expenditures and the relevance of financial inclusion across location, wealth quintiles and household structures |
| title_full_unstemmed | Residential energy expenditures and the relevance of financial inclusion across location, wealth quintiles and household structures |
| title_short | Residential energy expenditures and the relevance of financial inclusion across location, wealth quintiles and household structures |
| title_sort | residential energy expenditures and the relevance of financial inclusion across location wealth quintiles and household structures |
| topic | Energy expenditure Financial inclusion Rural Ghana |
| url | http://www.sciencedirect.com/science/article/pii/S2405844024027415 |
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