Insights from an energy poor Rwandan village

Abstract

© 2016 International Energy Initiative. We used primary data collected from 163 households in an off-grid Rwandan village to provide insights into energy poverty at the household-level. Informed by the rural livelihoods literature, we constructed a novel asset- and income-based index to disaggregate our results by socio-economic status. We also employed microeconometric techniques to investigate the determinants of household willingness-to-pay for electricity. We found statistically significant differences between households of different socio-economic status for expenditure on lighting and other electricity services, willingness-to-pay for electricity, income-generating activities and food security. Overall, our findings suggest that initiatives aiming to end energy poverty and catalyze rural development should: (1) recognize the different potential impacts of policies on households of different socio-economic status; (2) be sensitive to energy stacking behavior; (3) take a holistic approach to rural development; (4) and ensure that households are able to access modern energy through flexible payment schemes and equitable and sustained improvements in income.