PLS algorithm for estimating quality rural electricity on household income in Tanzania

Abstract

PurposeThis paper aims at discussing the impact of quality electricity on household income (HI) in rural areas with complementarities and intermediary resources context.Design/methodology/approachPartial least square-structural equation modelling (PLS-SEM) was used to estimate complex variables of quality electricity (QEC), development assets (DEA) and individual motivation (IMO) on rural HI. Age, education and gender were treated as moderators of antecedents for HI whilst household strength (HS) was treated as a mediator.FindingsThe findings show that QEC is an important predictor for HI in rural areas. In similar vein, land, social network, financial and physical resources cannot be undermined in bringing HI on stage. Moreover, IMO is a best complementary for electricity to bear impact on income. In fact, income cannot be equated with one factor; hence, moderating roles of education and gender should be considered.Research limitations/implicationsThe results are limited to QEC, IMO and DEA as key resources which are associated with HI.Practical implicationsThe findings should be twinned with rural development policy. There must be a multi-dimensional approach in diversifying development resources to the rural people for aggregated benefits.Social implicationsThe rural communities remain in dire need of electricity which is a precious resource for income generation. Electricity works better with other resources.Originality/valuePrevious scholars have inferred HI in relation to electricity. Income is a function of many resources. This study inculcated complementaries and intermediaries along QEC. Unique PLS-SEM was used in rethinking some of the rethinking of QEC–income relationships.

Affordability of electricity to rural consumers in Tanzania: An elephant in the room?

“…However, it is important to note that affordability does not simply mean low-cost or cheap; rather, it refers to the ability to pay for the necessary level of consumption or connection within normal spending patterns (Trotter, 2019;Bos et al, 2018). The demand for electricity is increasing at the household level due to its importance in providing lighting, powering small businesses, facilitating study time for school children, and operating entertainment appliances (Grimm et al, 2017;Muhihi & Lusambo, 2022a). However, information regarding electricity affordability, especially for rural consumers, is limited.…”

Rural electricity system reliability: Do outages exacerbate spending on backup fuel in rural Tanzania?

“…Access to reliable electricity is significant in a rural economy (Muhihi & Lusambo, 2022). Tanzania, due to unreliable electricity lost about 10% of GDP in 2010, with 7 341 people losing jobs in six regions (Confederation of Tanzania Industries, 2011).…”