The Importance of Government Effectiveness for Transitions toward Greater Electrification in Developing Countries

Abstract

Electricity is a vital factor underlying modern living standards, but there are many developing countries with low levels of electricity access and use. We seek to systematically identify the crucial elements underlying transitions toward greater electrification in developing countries. We use a cross-sectional regression approach with national-level data up to 2012 for 135 low-and middle-income countries. The paper finds that the effectiveness of governments is the most important governance attribute for encouraging the transition to increased electrification in developing countries, on average. The results add to the growing evidence on the importance of governance for development outcomes. Donors seeking to make more successful contributions to electrification may wish to target countries with more effective governments.

Brownfield, greenfield, and renewable energy consumption: Moderating role of effective governance

“…Especially in low-income and middle-income countries, investors are more interested in spending their funds on electrification and energy efficiency when there is the presence of government effectiveness. 72 Chang et al. 94 reveal that government effectiveness improves the overall energy efficiency in OECD countries.…”

“…Prior studies argue that effective governments are more likely to be effective in energy provisions. 72 Incompetent governments are generally associated with higher degree of corruption which decreases energy efficiency, restrict electricity provisions and may have an unfavorable influence on the energy sector. 73,74…”

Strengthening intergroup social cohesion in fragile situations

“…The need to engage with multiple parties (or not consider all relevant parties) can result in ineffective planning, implementation delays, and poor delivery. • Weak institutions and regulators: The effectiveness of governments and other related institutions has been shown to be a key factor in facilitating the expansion and maintenance of electricity infrastructure (Best 2017). Effective governments can support electricity access interventions through the creation and enforcement of consumer and supplier regulation and being responsive to challenges in terms of economic and political instability.…”

Energy and Population in Sub-Saharan Africa: Energy for Four Billion?

“…Throughout this study we have cited other work that finds energy consumption is strongly associated with both economic and social development. The transition to renewable energy has been shown to rely in part on the effectiveness of government [87]. It is critical that, as a unified region rather than as individual nations, policies are enacted and followed through that begin to plan now for avoiding catastrophic energy poverty in SSA beyond 2050.…”