Browsing: Renewable energy transition Africa

• Across Africa, a direct correlation exists between income levels and energy use.
• Poor households are often constrained to rely on environmentally detrimental fossil fuels like charcoal and firewood for energy.
• With better incomes, African households can transition to cleaner energy alternatives such as natural gas.

The pioneering work of Kraft and Kraft in the mid-20th century established a link between energy consumption and economic growth in the USA. Drawing on similar principles, recent research has highlighted a direct connection between income levels and energy consumption patterns in Africa.

This article delves into the intricate relationship between income and energy use in Africa and emphasizes the pivotal role of financial inclusion in addressing poverty and climate change.

The link between income and energy consumption

The fundamental theory of consumption posits that household income shapes consumption habits, encompassing not only food but also energy sources. Notably, a direct correlation exists between …