Abstract:
Global concerns about climate change and its effects and the quest for sustainable development have necessitated
policy actions, including energy interventions. Besides the intended goal of energy transition, these interventions
often have unintended impacts, which ought to be measured when assessing the overall effects of these energy
interventions. This study investigated the impact of a clean cooking fuel transition program in Ghana on financial
inclusion. It used a cross-sectional survey of over 900 households in two districts in Ghana where a clean energy
transition intervention had been implemented. The study employed linear probability and matching techniques
and found that clean energy interventions can promote financial inclusion among beneficiary households. The
probability of being significantly associated with financial inclusion is at least 6.6% higher for treated households
than it is for households that did not benefit from the program. The findings are robust across different outcome
variables and the potential transmission mechanisms are discussed. The study provides evidence for policy
makers to count the effect of financial inclusion in measuring the program’s overall impact. Furthermore, the
findings underscore the need for policies that provide the needed infrastructure and financial ‘ecosystem’ to
support financial inclusion, particularly in rural areas where the energy interventions are implemented.
