Affordability of electricity to rural consumers in Tanzania: An elephant in the room?
DOI:
https://doi.org/10.38140/ijrcs-2024.vol6.02Keywords:
Rural electricity, electricity connection, consumption affordability, appliances, TanzaniaAbstract
Affordability of electricity in rural areas has received negligible concern, yet with equivocal information. Thus, this paper extrapolates this disregarded aspect by raising empirical debates on the affordability of electricity connection and consumption while also predicting the factors of domestic electrical appliances among rural consumers. Affordability of electricity connection was measured by a catastrophic approach through the index of utility Price Income Ratio (PIR) at a threshold of 10%. Consumption affordability was estimated through PIR at a 5% share of household income, coupled with a monthly basic electricity consumption of 30 kWh per household. A multiple regression model was adopted to determine electrical appliance ownership in the household. The paper reveals that electricity connection was not affordable to consumers in the lowest income quintile (61.76%), who spent up to 33% of their income. On consumption, electricity was affordable as consumers spent no more than 5% of their household income. Moreover, the paper explains that electricity affordability and the desire for wellbeing motivate consumers to use domestic electrical appliances. Measuring the affordability of energy has a paucity in the energy literature. Thus, the paper provides insight into the present debate regarding affordability measures. Although the paper uniquely uncovers the affordability of electricity connection and consumption as prime factors for policy consideration, energy policy should also consider that affordability does not end at connection; rather, it extends to consumption. Energy policy must prioritise free technical services for rural power connection and subsidise consumption costs for the economically disadvantaged.
References
Abendroth, A. K. (2022). Transitions to parenthood, flexible working and time-based work-to-family conflicts: A gendered life course and organisational change perspective. Journal of Family Research, 34(4), 1033–1055. https://doi.org/10.20377/jfr-730
Adam, F. W., Brew-Hammond, A., & Essandoh, E. O. (2013). Relationships between energy use and income levels for households in Ghana. European Scientific Journal, 9(16), 1857-7881.
Avordeh, T. K., Gyamfi, S., & Opoku, A.A. (2022). The role of demand response in residential electricity load reduction using appliance shifting techniques. International Journal of Energy Sector Management, 16(4), 605-635. https://doi.org/10.1108/IJESM-05-2020-0014
Bajwa, M., & Cavicchi, J. (2017). Growing evidence of increased frequency of negative electricity prices in US wholesale electricity markets. IAEE Energy Forum.
Banday, U. J., & Aneja, R. (2019). Renewable and non-renewable energy consumption, economic growth, and carbon emission in BRICS: Evidence from bootstrap panel causality. International Journal of Energy Sector Management, 14(1), 248-260. https://doi.org/10.1108/IJESM-02-2019-0007
Bangladesh Bureau of Statistics. (2018). Disconnect for non-payment' policy for power. Planning division, Ministry of Planning. Dhaka. 16pp.
Batteiger, A., & Rotter, V. S. (2018). Material implications of rural electrification: A Methodological framework to assess in-use stocks of off-grid in rural household in off-grid solar products and EEE in rural households in Bangladesh. Recycling, 3(7), 1-22. https://doi.org/10.3390/recycling3010007
Best, R., & Burke, J. P. (2018). Electricity availability: A precondition for faster economic growth? Energy Economics, 74, 321-329. https://doi.org/10.1016/j.eneco.2018.06.018
Betraud, A. (2016). Affordability: Households' income, regulations, and land supply. Working paper, China. 21pp.
Bezerra, P. B., Callegari, C. L., Ribas, A., Lucena, A. F. P., Portugal-Perreira, J., Koberle, A., et al. (2017). The power of light: Socioeconomic and environmental implications of a rural electrification program in Brazil. Environmental Research Letters, 12(9), 095004. https://doi.org/10.1088/1748-9326/aa7bdd
Boemi, S. N., & Papadopoulos, A. M. (2019). Energy poverty and energy efficiency improvements: A longitudinal approach of the Hellenic households. Energy and Buildings, 197, 242-250. https://doi.org/10.1016/j.enbuild.2019.05.027
Bos, K., Chaplin, D., & Mamun, A. (2018). Benefits and challenges of expanding grid electricity in Africa: A review of rigorous evidence on household impacts in developing countries. Energy Sustainable Development, 44, 64–77. https://doi.org/10.1016/j.esd.2018.02.007
Broderick, A. (2018). Equality of What? The Capability Approach and the Right to Education for Persons with Disabilities. Social Inclusion, 6(1), 29–39. https://doi.org/10.17645/si.v6i1.1193
Capili, B. (2021). Overview: Cross-Sectional Studies. American Journal of Nursing, 121(10), 59-62. https://doi.org/10.1097/01.NAJ.0000794280.73744.fe
Cohen, S. A., Nash, C. C., & Byrne, E. N. (2023). Income and rural–urban status moderate the association between income inequality and life expectancy in US census tracts. Journal of Health, Population and Nutrition, 42, 1-8. https://doi.org/10.1186/s41043-023-00366-6
Curtis, M., Torriti, J., & Smith, S. T. (2018). Demand side flexibility and responsiveness: Moving demand in time through technology. In A. Hui, R. Day, & G. Walker (Eds.), Demanding Energy. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-61991-0_13
Creswell, J. W., & Creswell, J. D. (2017). Research design: Qualitative, quantitative, and mixed methods approaches. Sage Publications.
Day, R., Walker, G., & Simcock, N. (2016). Conceptualising energy use and energy poverty using capabilities. Energy Policy, 93, 255–264.
Debnatha, K. B., Moursheda, M., & Chewa, S. P. K. (2015). Modelling and forecasting energy demand in rural households of Bangladesh. Energy Procedia, 75, 2731-2737.
Deller, D. (2016). Energy affordability in the EU: The risks of metric-driven policies. Energy Policy, 119, 168–182.
Dey, K., Dubey, A. K., & Sharma, S. (2023). Can renewable energy drive industrial growth in developing economies? Evidence from India. International Journal of Energy Sector Management, 17(5), 950-971. https://doi.org/10.1108/IJESM-09-2021-0016
Djeunankan, R., Njangang, H., Tadadjeu, S., & Kamguia, B. (2023). Remittances and energy poverty: Fresh evidence from developing countries. Utilities Policy, 81, 101516. https://doi.org/10.1016/j.jup.2023.101516
Energy and Water Utilities Regulatory Authority. (2018). Regulatory performance report on electricity sub-sector for the year ended 30th June 2018. Dodoma: EWURA. 37pp.
Field, A. (2009). Discovering statistics using SPSS. SAGE Publications Inc.
World Bank. (2015). Beyond connections: Energy access redefined (ESMAP technical report 008/15). World Bank Group
Ganesan, K., & Vishnu, R. (2014). Energy access in India - today and tomorrow. Council on Energy, Environment and Water (CEEW).
Garba, I., & Bellingham, R. (2021). Energy poverty: Estimating the impact of solid cooking fuels on GDP per capita in developing countries - Case of sub-Saharan Africa. Energy, 221, 223–243. https://doi.org/10.1016/j.energy.2021.119770
Gerlinde, M. (2023). Paid Parental Leave in Correlation with Changing Gender Role Attitudes. Social Sciences, 12, 1–19. https://doi.org/10.1016/j.energy.2021.119770
Golumbeanu, R., & Barnes, D. F. (2013). Connection charges and electricity access in sub-Saharan Africa. World Bank Policy Research Working Paper, (6511). https://ssrn.com/abstract=2285977
Grimm, M., Munyehirwe, A., Peters, J., & Sievert, M. (2017). A first step up the energy ladder. Low-cost solar kits and household's welfare in rural Rwanda. World Bank Economic Review, 31, 631–649. https://doi.org/10.1093/wber/lhw052
Grimm, V., Martin, A., Weibelzahl, M., & Zöttl, G. (2016). On the long run effects of market splitting: why more price zones might decrease welfare. Energy Policy, 94, 453-467. https://doi.org/10.1016/j.enpol.2015.11.010
Groh, S., Pachauri, S., & Narasi, R. (2016). What are we measuring? An empirical analysis of household electricity access metrics in rural Bangladesh. Energy for Sustainable Development, 30, 21–31.
Halbrügge, S., Heess, P., Schott, P., & Weibelzahl, M. (2023). Negative electricity prices as a signal for lacking flexibility? On the effects of demand flexibility on electricity prices. International Journal of Energy Sector Management, 17(5), 1-21. https://doi.org/10.1108/IJESM-12-2021-0005
Haurin, D. (2016). The Affordability of Owner-Occupied Housing in the United States: Economic Perspectives. Research Institute for Housing America, 38–51.
International Energy Agency. (2016). World energy outlook 2016 – methodology for energy access analysis. International Energy Agency.
International Energy Agency. (2019a). International Energy Agency, 2019 annual report. World Bank.
International Energy Agency. (2019b). Tracking SDG7. The energy progress report. International Energy Agency.
Jenkins, K., Sovacool, B. K., & McCauley, D. (2018). Humanising sociotechnical transitions through energy justice: an ethical framework for global transformative change. Energy Policy, 117, 66–74. https://doi.org/10.1016/j.enpol.2018.02.036
Jenkins, K. E., Sovacool, B. K., Mouter, N., Hacking, N., Burns, M. K., & McCauley, D. (2021). The methodologies, geographies, and technologies of energy justice: a systematic and comprehensive review. Environmental Research Letters, 16(4), https://doi.org/10.1088/1748-9326/abd78c
Johnson, R. L., Anderson, S. M., & Davis, L. K. (2018). Statistical Analysis: A Practical Approach. Springer.
Kojima, M., & Trimble, C. (2016). Making power affordable for Africa and viable for its utilities. World Bank Group.
Kojima, M., Zhou, X., Han, J. J., Wit, J., Bacon, R., & Trimble, C. (2016). Who uses electricity in Sub-Saharan Africa? Findings from household surveys. Policy research working paper 7889. World Bank. 71pp.
Kuhe, A., & Bisu, Y. D. (2020). Influence of situational factors on households' energy consumption behaviour: Towards an effective energy policy. International Journal of Energy Sector Management. 12, 389-407. https://doi.org/10.1108/IJESM-03-2019-0017
Kyritsis, E., Andersson, J., & Serletis, A. (2017). Electricity prices, large-scale renewable integration, and policy implications. Energy Policy, 101, 550-560.
Lee, K., Miguel, E., & Wolfram, C. (2016). Appliance ownership and aspirations among electric grid and home solar households in rural Kenya. American Economic Review, 106(5), 89-94.
Lusambo, L. P. (2016). Household energy consumption patterns in Tanzania. Journal of Ecosystem and Ecography, 5(2), 1-20. https://doi.org/10.4172/2157-7625.S5-007
Lusambo, L. P. (2009). Economics of household energy in Miombo woodlands of Eastern and Southern Tanzania [Doctoral dissertation, University of Wales]. University of Wales, Bangor.
Moors, A. (2015). Energy affordability indices: Overview. University of Michigan. Energy Institute. Michigan.
Moss, T. (2018). Measurements of Energy Access: A better way? Energy for Growth Hub. https://energyforgrowth.org/article/measurements-of-energy-access-a-better-way/
Mudi, B. I., Sakwa, M. M., & Mukulu, E. (2019). Use of skills and knowledge effect of rural electrification on the household wellbeing of proprietors of micro and small enterprises in Kenya. International Journal of Academic Research and Development, 4(2), 51-59.
Muhihi, B. G., & Lusambo, L. P. (2022a). PLS algorithm for estimating quality rural electricity on household income in Tanzania. Technological Sustainability, 1(2), 160-183. https://doi.org/10.1108/TECHS-01-2022-0004
Muhihi, B., & Lusambo, L. P. (2022b) Rural electricity system reliability: Do outages exacerbate spending on backup fuel in rural Tanzania? Energy Journal in Southern Africa, 33(2), 52–64. https://dx.doi.org/10.17159/2413-3051/2022/v33i2a13018
Muhihi, B. G., & Lusambo, L.P. (2021). Electricity for information and communication technology adoption in rural areas, Tanzania. Journal of Co-operative and Business Studies, 6(1), 2714-2043.
Muhihi, B. G. (2024). Rethinking Access to Clean Energy for Climate Change Mitigation in Tanzania. Journal of Energy Research and Reviews, 16(1), 1-11. https://doi.org/10.9734/jenrr/2024/v16i1326
Munyanyi, M. E., & Churchill, S. A. (2022). Foreign aid and energy poverty: Sub-national evidence from Senegal. Energy Economics, 108, 1–18. https://doi.org/10.1016/j.eneco.2022.105899
Narasimha, D., & Pachauri, S. (2017). Energy access and living standards: Some observations on recent trends. Energy Policy, 12, 1-10. https://doi.org/10.1088/1748-9326/aa5b0d
Naumzik, C., & Feuerriegel, S. (2020). Forecasting electricity prices with machine learning: predictor sensitivity. International Journal of Energy Sector Management, 15(1), 157-172.
Niëns, L., & Brouwer, W. (2013). Measuring the affordability of medicines: Importance and challenges. Health Policy, 112, 45-52. https://doi.org/10.1016/j.healthpol.2013.05.018
Nohr, E.A., & Liew, Z. (2018). How to investigate and adjust for selection bias in cohort studies. Acta Obstetricia et Gynecologica Scandinavica, 97(4), 407-416. https://doi.org/10.1111/aogs.13319
Nyumba, O.T., Wilson, K., Derrick, C.J., & Mukherjee, N. (2018). The use of focus group discussion methodology: Insights from two decades of application in conservation. British Ecological Society, 20–32. https://doi.org/10.1111/2041-210X.12860
Odarno, L., Sawe, E., Swai, M., & Maneno, J. (2017). Accelerating mini-grid deployment in Sub-Saharan Africa, lessons from Tanzania. TaTEDO and World Resource Institute. https://www.wri.org/research/accelerating-mini-grid-deployment-sub-saharan-africa-lessons-tanzania
Okere, K. I., Dimnwobi, K. S., Ekesiobi, C., & Onuoha, F. C. (2023). Turning the tide on energy poverty in sub-Saharan Africa: Does public debt matter? Energy, 282(1), 135-149. https://doi.org/10.1016/j.energy.2023.128365.
Oum, S. (2019). Energy poverty in the Lao PDR and its impacts on education and health. Energy Policy, 132, 247–253. https://doi.org/10.1016/j.enpol.2019.05.030 on 17.08.2023
Pallant, J. (2007). SPSS survival manual: A Step-by-Step to data analysis using SPSS (3rd Ed.). Berkshire.
Petts, R. (2022). Father involvement and gender equality in the United States: Contemporary norms and barriers. Routledge.
Petts, R. J., Trenton, D. M., & Gayle, K. (2022). Organisational policies, workplace culture, and perceived job commitment of mothers and fathers who take parental leave. Social Science Research, 103, 102651. https://doi.org/10.1016/j.ssresearch.2021.102651
Qian, Y., Xu, Z., Gou, X., & Škare, M. (2023). A survey on energy justice: a critical review of the literature. Economic Research-Ekonomska Istraživanja, 36(3), 1-30. https://doi.org/10.1080/1331677X.2022.2155860
Rademaekers, K., Yearwood, J., Ferreir, A., Pye, S., Hamilton, I., Agnolucci, P., & Anisimova, N. (2016). Selecting indicators to measure energy poverty framework: European Commission, Prinomics.
Rahman, M. M., & Velayutham, E. (2020). Renewable and non-renewable energy consumption-economic growth nexus: New evidence from South Asia. Renewable Energy, 147, 399-408. https://doi.org/10.1016/j.renene.2019.09.007
Raudeli?nien?, J., Stadnik, B., & Kindaryt?, R. (2016). Knowledge appliance process: theoretical and practical evaluation aspects. Entrepreneurship and Sustainability, 3(4), 368-379. http://dx.doi.org/10.9770/jesi.2016.3.4(5)
Reboredo, J. C., & Ugolini, A. (2018). The impact of energy prices on clean energy stock prices. A multivariate quantile dependence approach. Energy Economics, 76, 136-152. https://doi.org/10.1016/j.eneco.2018.10.012
Renne, J., Tolford, T., Hamidi, S., & Ewing, R. (2016). The cost and affordability paradox of transit-oriented development: A comparison of housing and transportation costs across transit-oriented development, hybrid and transit-adjacent development station typologies. Housing Policy, 26(4-5), 819-834. https://doi.org/10.1080/10511482.2016.1193038
Richmond, J., & Urpelainen, J. (2019). Electrification and appliance ownership over time: Evidence from rural India. Energy Policy, 133, 1-54. https://doi.org/10.1016/j.enpol.2019.06.070
Sankhyayan, P., & Dasgupta, S. (2019). Availability' and/or 'Affordability': What matters in household energy access in India? Energy Policy, 131, 131-143. https://doi.org/10.1016/j.enpol.2019.04.019
Sari, R., Voyvoda, E., Lacey-Barnacle, M., Karababa, E., Topal, C., & Islambay, D. (2017). Energy justice - a social sciences and humanities cross-cutting theme report. Shape energy. https://hdl.handle.net/11511/75461
Sievert, M., & Steinbuks, J. (2020). Willingness to pay for electricity access in extreme poverty: Evidence from sub-Saharan Africa. World Development, 128, 104859. https://doi.org/10.1016/j.worlddev.2019.104859
Smith, J. A. (2020). Cross-sectional studies: An overview of design and applications. Journal of Research Methods, 15(3), 123–145.
Taneja, J. (2018). If you build it, will they consume? Key challenges for universal, reliable, and low-cost electricity delivery in Kenya (Working Paper 491). Center for Global Development. Washington, 26pp.
Trotter, J. (2019). Energy affordability report, second edition; American Legislative Exchange Council. https://alec.org/wp-content/uploads/2022/09/Energy-Affordability-Report-2.pdf.
United Nations. (2016). Sustainable development goal report. United Nations. https://www.un.org/en/desa/sustainable-development-goals-report-2016
URT. (2017). Tanzania human development report 2017: Social policy in the context of economic transformation. United Republic of Tanzania. https://hdr.undp.org/system/files/documents/thdr2017launchpdf.pdf
URT. (2022). 2022 Population and housing census. United Republic of Tanzania
van de Walle, D., Ravallion, M., Mendiratta, V., & Koolwal, G. (2017). Long-term gains from electrification in rural India. World Bank Economic Review, 31(2), 385-411. https://doi.org/10.1093/wber/lhv057
Wang, X., & Cheng, Z. (2020). Cross-Sectional Studies: Strengths, Weaknesses, and Recommendations. Chest, 158(1), 65–71. https://doi.org/10.1016/j.chest.2020.03.012
Westskog, H., & Winther, T. (2014). Electricity consumption: Should there be a limit? Implications of people's attitudes for the forming of sustainable energy policies. Journal of Sustainable Development, 11(1), 97-114. https://www.jstor.org/stable/26188731
Winkler, H., Simões, A., Alam, M., Rahman, A., & Mwakasonda, S. (2011). Access and affordability of electricity in developing countries. World Development, 39(6), 1037–1050. https://doi.org/10.1016/j.worlddev.2010.02.021
Winther, T. (2012). Electricity's effect on gender equality in rural Zanzibar, Tanzania: case study for Gender and Energy World Development Report Background Paper. https://research.utwente.nl/en/publications/electricitys-effect-on-gender-equality-in-rural-zanzibar-tanzania
World Bank. (2017). State of Electricity Report 2017. World Bank.
World Bank. (2021). Access to electricity, rural % of the rural population. https://data.worldbank.org/indicator/EG.ELC.ACCS.RU.ZS?locations=BI
World Bank. (2013). Ethiopia electricity access rural expansion project output verification report-draft report. World Bank.
World Bank. (2016). Beyond connections: Energy access redefined. World Bank.
Yevdokimov, Y., Getalo, V., Shukla, D., & Sahin, T. (2019). Measuring willingness to pay for electricity: The case of New Brunswick in Atlantic Canada. Energy & Environment, 30(2), 292–303. https://doi.org/10.1177/0958305X18790954
Young, G., Wilcox, S., Leishman, C., & McCloy, S. (2017). A Review of the Affordability of Social Rents in Northern Ireland. https://niopa.qub.ac.uk/bitstream/NIOPA/6817/1/ni_affordability_report_2017.pdf
Published
How to Cite
Issue
Section
Copyright (c) 2024 Bikolimana Giliadi Muhihi
This work is licensed under a Creative Commons Attribution 4.0 International License.
