Assessment of the Driving Factors Affecting Electricity Consumption in Africa Using Index Decomposition Analysis and Satellite Derived Data

Abstract

Inadequate electricity access limits human development and affects quality of life in Africa. Hence, the improvement of electricity access has become a cornerstone of the African energy policy. This study proposes the use of satellite derived data of nighttime lighting, population count and Index Decomposition Analysis (IDA) to identify the driving factors for changing in electricity consumption in Africa between 2000 and 2013. The results of decomposition analysis indicated that population growth throughout the continent resulted in increased electricity consumption, while other factors had different effects. The results of this study could contribute to the design of better energy policy to achieve sustainable development of the continent.

LMDI decomposition and macroeconomic drivers of electricity intensity in Madagascar

“…The study conducted by Akhmetov and Vundo (2018) used the Index Decomposition Analysis (IDA) and satellite-derived data to identify the driving factors for changes in electricity consumption in Africa between 2000 and 2013. The IDA approach decomposes the changes in total electricity consumption into the effects of population growth, electricity intensity of GDP, and economic activity.…”

“…Specifically, there is a paucity of studies exploring the underlying drivers and trends shaping electricity-, or more generally energy-related metrics in the country. Notable exceptions include studies specific to the case of Madagascar by Praene et al (2017Praene et al ( , 2019Praene et al ( , 2021, as well as panel-based studies by Aboagye and Alagidede (2016), Akhmetov and Vundo (2018), Nkalu et al (2020), and Dokas et al (2022). To address this knowledge gap, this study employs a two-stage approach to investigate the determinants of electricity intensity in Madagascar.…”