Access to electricity improves gross income and welfare of households but has little effect on agricultural employment.
That’s the outcome of a study by the Economics Department of Kwame Nkrumah University of Science and Technology.
Researchers sought to find the effect of rural electrification on household incomes by comparing those which have electricity and those which have none.
"We examined the impact of electricity penetration into rural areas on income and welfare distribution by identifying the differential impact of electricity access across the ladder," said lead researcher, says Dr George Adu.
"Rural electrification can benefit the poor more if other complementary actions such subsidizing the costs of connections and appliances are implemented together with grid extension process since access is only a necessity but not sufficient condition for improvement of stakeholders' welfare and income, "he adds.
The researchers recommend enterprise development programmes be designed to encourage end users to utilize electricity.
The nationwide study was funded by International Growth Centre, Ghana.
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