Electricity Affordability and Household Welfare in Nigeria
Keywords:
Affordability, Access, Electricity, Welfare, Household, NigeriaAbstract
This study examines the affordability of
electricity in terms of access to electricity
and the cost of electricity vis-Ã -vis the
welfare of households in Nigeria. The
study is motivated by the inability of the
National grid to provide adequate
electricity supply to every households in
the country and by the fact that majority of
the Nigerian population in both the rural
and urban areas depend solely on
generators to power their homes in a quest
to make up for the National energy
inadequacy. To this end, the study
enquires into the factors that can enhance
households’ potentials for generating
electricity from solar and inverters, instead
of generators, in order to reduce emissions
and increase their real incomes. Empirical
results confirm that households’ captive
power generation capacity revolves around
the usage of generators while they are less
informed about the use of solar panels and
inverters. Also, we confirm that households’ income earning potentials determine the choice they make between generator, solar and inverters. We hereby conclude that electricity affordability has a strong correlation with households’ welfare in Nigeria.
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