Power to the People: Increasing Electricity Access, Connectivity, and Usage in Uganda

By Heidi Almås

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Grace Alinaitwe’s thesis is a collection of four empirical papers on energy-related issues in Uganda, called Power to the People: Increasing Electricity Access, Connectivity, and Usage in Uganda

The four empirical papers on energy-related issues in Uganda  

1. Electricity demand

The first paper examines household energy demand, using data from the 2013/2014 Uganda Living Standards Measurement Study (LSMS). The study finds that higher income, education, and urban living increase electricity use, while reducing firewood use. Despite this, reducing electricity prices alone may not suffice to increase usage significantly due to the prevalence of energy stacking practices. Targeted measures, including expanding the electricity grid, are necessary. 

2. Adoption of Solar Photovoltaic (PV) energy

The second paper analyzes factors influencing solar PV adoption using Probit models on 2018/2019 LSMS data. Key factors include savings, education, age, household size, and income. Urban households, those with grid access, and female-headed households are less likely to adopt solar PVs. Given that most households live below or around the poverty line, the study recommends government credit schemes to reduce upfront costs and promote solar energy awareness, especially in rural areas. 

3. Charcoal Prices and Diesel

The third paper investigates the impact of diesel prices on charcoal prices using an error correction model with data from July 2010 to January 2021. A long-term relationship is found between charcoal retail prices and the supply prices of charcoal and kerosene, but not firewood and diesel. The increasing demand and reduced supply due to deforestation drive charcoal prices up over time. 

4. Electricity Consuption and Economic Growth

The fourth paper reexamines the relationship between electricity consumption and economic growth using quarterly data from 2010Q3–2023Q3. No cointegration is found between GDP, capital stock, and electricity consumption, supporting the neutrality hypothesis. The study suggests future research should focus on potential structural breaks in this relationship and their implications for economic growth and policy. 

Grace Alinaitwe’s will defend her thesis "Environmental costs of energy production and policies to address these costs" on Friday the 13. December, Room T401, the Tower Building (4th floor), Handelshøyskolen NMBU,  
Christian Magnus Falsens vei 30, Ås. 
MazeMap: T401, Tårnbygningen, NMBU - MazeMap 

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