Energy use patterns and trends: the impact of energy policy in South African low-income households
- Israel-Akinbo, Sylvia Olawumi
- Authors: Israel-Akinbo, Sylvia Olawumi
- Date: 2018
- Subjects: Energy policy -- Social aspects -- South Africa , Energy security -- South Africa , Households -- Economic aspects -- South Africa , Poor -- Energy assistance -- South Africa , Poor -- South Africa , University of Cape Town. National Income Dynamics Study , Free Basic Electricity Policy (South Africa) , Income and Expenditure Survey (South Africa)
- Language: English
- Type: text , Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10962/62264 , vital:28148
- Description: Energy poverty is a growing concern especially amongst low-income populations in developing countries. The transition to modern energy carriers is associated with welfare improvement and it is considered as an important developmental goal to achieve, in order to eradicate energy poverty. As such, the South African government has made energy poverty an issue of policy focus. Literature abounds with different measures of energy poverty; energy programmes and policies are also aimed at improving the welfare of the low-income households in terms of basic services such as electricity. As a point of entry into this study, this thesis explored energy use patterns and trends in low-income South African households. The research objectives addressed in the study included investigating the extent of energy poverty through a multidimensional energy poverty index, examining the extent to which the 'energy ladder' and 'energy stacking' models explains energy transition patterns and to examining whether the Free Basic Electricity Policy has impacted on energy choices and energy poverty. In order to contribute to energy poverty and energy policy discussion in South Africa, this study has investigated the dimensions of energy poverty amongst low-income South African households from these three different perspectives (objectives). A positivist approach, by using a quantitative method was used to underpin the study. The study utilised secondary data, which were from the National Income Dynamics Survey and Income and Expenditure Survey. The former was used for the analysis of the multidimensional energy poverty index and energy transition patterns whilst the latter was used for the analysis of the impact of the Free Basic Electricity Policy. The four waves of the National Income Dynamics Survey, with 2008 as the base year and the 2010/2011 version of the Income and Expenditure Survey were used whilst the data were processed through the quantitative software package, STATA version 12. The data were then analysed using the multidimensional energy poverty framework by Nussbaumer et al. (2011) and econometric models, which best fit the objectives. The result of the panel analysis, which assesses the multidimensional energy poverty for low-income households in South Africa showed that low-income households in both urban and rural areas are in a moderate state of energy poverty but different levels. However, the cross-sectional analysis revealed that the percentage of low-income households that are energy poor is reducing for the rural households but increasing for their urban counterparts from 2008 to 2014. The panel and cross-sectional results of the contribution of the energy dimensions in multidimensional energy poverty shows that the low-income households are especially energy poor in terms of heating fuel. The findings from the econometric estimates partly confirmed an energy ladder behaviour for the energy choice for cooking. An energy stacking behaviour was confirmed for the low- income households for these energy services - heating and lighting. Moreover, it was found that with respect to cooking and heating, low-income households living in a modern dwelling, having a small household size and residing in an urban area are less likely to use transitional or traditional energy carriers but most likely to use modern energy carriers. In addition, low-income households are more likely to use modern energy carriers for their cooking and heating in 2010, 2012 and 2014 than in 2008. For lighting energy service, low- income households living in a modern dwelling in an urban settlement are most likely to use modern energy carriers for lighting and less likely to use transitional energy carriers or candles. Only in 2014 were low-income households more likely to use modern energy carriers for lighting than in 2008. The results further showed that modern energy carriers have the highest probability of being preferred for lighting followed by cooking and lastly heating. Also emerging from the findings are that more urban low-income households are receiving the Free Basic Electricity (FBE) grant than their counterparts in the rural areas. The probability of low-income households owning entertainment/education appliance and food preserving appliance is positively influenced by access to Free Basic Electricity. The low- income households living in an urban settlement and in a modern type of dwelling supported this result. However, household size does not seems to support this result should it grow larger.
- Full Text:
- Date Issued: 2018
- Authors: Israel-Akinbo, Sylvia Olawumi
- Date: 2018
- Subjects: Energy policy -- Social aspects -- South Africa , Energy security -- South Africa , Households -- Economic aspects -- South Africa , Poor -- Energy assistance -- South Africa , Poor -- South Africa , University of Cape Town. National Income Dynamics Study , Free Basic Electricity Policy (South Africa) , Income and Expenditure Survey (South Africa)
- Language: English
- Type: text , Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10962/62264 , vital:28148
- Description: Energy poverty is a growing concern especially amongst low-income populations in developing countries. The transition to modern energy carriers is associated with welfare improvement and it is considered as an important developmental goal to achieve, in order to eradicate energy poverty. As such, the South African government has made energy poverty an issue of policy focus. Literature abounds with different measures of energy poverty; energy programmes and policies are also aimed at improving the welfare of the low-income households in terms of basic services such as electricity. As a point of entry into this study, this thesis explored energy use patterns and trends in low-income South African households. The research objectives addressed in the study included investigating the extent of energy poverty through a multidimensional energy poverty index, examining the extent to which the 'energy ladder' and 'energy stacking' models explains energy transition patterns and to examining whether the Free Basic Electricity Policy has impacted on energy choices and energy poverty. In order to contribute to energy poverty and energy policy discussion in South Africa, this study has investigated the dimensions of energy poverty amongst low-income South African households from these three different perspectives (objectives). A positivist approach, by using a quantitative method was used to underpin the study. The study utilised secondary data, which were from the National Income Dynamics Survey and Income and Expenditure Survey. The former was used for the analysis of the multidimensional energy poverty index and energy transition patterns whilst the latter was used for the analysis of the impact of the Free Basic Electricity Policy. The four waves of the National Income Dynamics Survey, with 2008 as the base year and the 2010/2011 version of the Income and Expenditure Survey were used whilst the data were processed through the quantitative software package, STATA version 12. The data were then analysed using the multidimensional energy poverty framework by Nussbaumer et al. (2011) and econometric models, which best fit the objectives. The result of the panel analysis, which assesses the multidimensional energy poverty for low-income households in South Africa showed that low-income households in both urban and rural areas are in a moderate state of energy poverty but different levels. However, the cross-sectional analysis revealed that the percentage of low-income households that are energy poor is reducing for the rural households but increasing for their urban counterparts from 2008 to 2014. The panel and cross-sectional results of the contribution of the energy dimensions in multidimensional energy poverty shows that the low-income households are especially energy poor in terms of heating fuel. The findings from the econometric estimates partly confirmed an energy ladder behaviour for the energy choice for cooking. An energy stacking behaviour was confirmed for the low- income households for these energy services - heating and lighting. Moreover, it was found that with respect to cooking and heating, low-income households living in a modern dwelling, having a small household size and residing in an urban area are less likely to use transitional or traditional energy carriers but most likely to use modern energy carriers. In addition, low-income households are more likely to use modern energy carriers for their cooking and heating in 2010, 2012 and 2014 than in 2008. For lighting energy service, low- income households living in a modern dwelling in an urban settlement are most likely to use modern energy carriers for lighting and less likely to use transitional energy carriers or candles. Only in 2014 were low-income households more likely to use modern energy carriers for lighting than in 2008. The results further showed that modern energy carriers have the highest probability of being preferred for lighting followed by cooking and lastly heating. Also emerging from the findings are that more urban low-income households are receiving the Free Basic Electricity (FBE) grant than their counterparts in the rural areas. The probability of low-income households owning entertainment/education appliance and food preserving appliance is positively influenced by access to Free Basic Electricity. The low- income households living in an urban settlement and in a modern type of dwelling supported this result. However, household size does not seems to support this result should it grow larger.
- Full Text:
- Date Issued: 2018
Integration of small-scale mohair farmers into the commercial agricultural economy in Lesotho: a new institutional economics approach
- Authors: Rantlo, Montoeli Ashby
- Date: 2018
- Subjects: Farms, Small Lesotho , Mohair Lesotho , Institutional economics , Transaction costs , Informal sector (Economics)
- Language: English
- Type: text , Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10962/62275 , vital:28149
- Description: Agriculture continues to be a strategic sector in the development of most low-income countries like Lesotho where small-scale farming is the dominant livelihood activity that provides income and employment to the people. Smallholder farmers' integration into the commercial agricultural markets is a crucial element for economic development and has become a part of development strategies for developing countries and the objectives of international development institutions. The integration of the smallholders into these markets is dependent upon a number of factors including formal and informal institutions. Factors like population growth and demographic changes, technological change and introduction of new commodities, development of infrastructure and market institutions, development of the nonfarm sector and broader economy, rising labour opportunity costs, and macroeconomic, trade and sectoral policies affecting prices and other driving forces determine market participation. In addition, development of input and output markets, institutions like property rights and land tenure, market regulations, cultural and social factors affecting consumption preferences, production and market opportunities and constraints, agro-climatic conditions, and production and market related risks are other factors that affect the commercialisation process. On the other hand, factors like smallholder resource endowments including land and other natural capital, labour, physical capital, and human capital among others are household specific and considered internal determinants of market participation. Nevertheless, the decision to participate in agricultural markets lies with the individual farming household. Under the New Institutional Economics (NIE), this decision is influenced by institutional factors such as risk and preferences, factors which affect household production and the level of costs associated with market transactions. These market transactions are commonly referred to as transaction costs. The study focused on investigating the institutions that limit the integration of small-scale mohair farmers into the commercial agricultural economy in Lesotho. The documentation and evaluation of the institutional structure of the mohair industry is performed whereby the institutional factors influencing participation of small-scale mohair farmers in formal, informal and illegal markets in Lesotho and factors contributing to transaction costs associated with the integration of small-scale farmers into the commercial mohair sector are investigated. Therefore, the investigation will help to address the institutional problems hindering the development of an effective marketing structure for the commercialisation of small-scale mohair producers in Lesotho. The results of the study show that the small-scale mohair farmers that use the formal markets are integrated into the commercial agricultural economy and these farmers' integration into the mainstream economy is influenced by access to government support in the form of shearing sheds, transport subsidies and advisory services. They also have access to market information, marketing infrastructure, knowledge of grades and standards and secure property rights. Other factors that helped their integration into the commercial economy is their contractual agreements with mohair buyers, path dependent based decision making as well as the collective approach to mohair farming. The small-scale mohair farmers using the informal markets do not receive the advantages received by the famers in the formal markets. These small-scale mohair farmers are not integrated into the commercial markets and their only option is the informal markets and their participation in these markets is enhanced by their marketing arrangements with the informal traders, culture influenced decisions, social capital and prompt payments. Despite integration into the commercial agricultural economy, small-scale farmers that use formal markets face the challenges of power imbalances, mistrust and conflicts which may affect this integration into the commercial markets if left unchecked. The study concludes that in the face of institutional challenges, the small-scale mohair farmers using the formal markets are integrated into the commercial agricultural economy and there is potential for improvement of their integration as well as the integration of the small-scale mohair farmers that use the informal markets if institutional challenges are addressed.
- Full Text:
- Date Issued: 2018
- Authors: Rantlo, Montoeli Ashby
- Date: 2018
- Subjects: Farms, Small Lesotho , Mohair Lesotho , Institutional economics , Transaction costs , Informal sector (Economics)
- Language: English
- Type: text , Thesis , Doctoral , PhD
- Identifier: http://hdl.handle.net/10962/62275 , vital:28149
- Description: Agriculture continues to be a strategic sector in the development of most low-income countries like Lesotho where small-scale farming is the dominant livelihood activity that provides income and employment to the people. Smallholder farmers' integration into the commercial agricultural markets is a crucial element for economic development and has become a part of development strategies for developing countries and the objectives of international development institutions. The integration of the smallholders into these markets is dependent upon a number of factors including formal and informal institutions. Factors like population growth and demographic changes, technological change and introduction of new commodities, development of infrastructure and market institutions, development of the nonfarm sector and broader economy, rising labour opportunity costs, and macroeconomic, trade and sectoral policies affecting prices and other driving forces determine market participation. In addition, development of input and output markets, institutions like property rights and land tenure, market regulations, cultural and social factors affecting consumption preferences, production and market opportunities and constraints, agro-climatic conditions, and production and market related risks are other factors that affect the commercialisation process. On the other hand, factors like smallholder resource endowments including land and other natural capital, labour, physical capital, and human capital among others are household specific and considered internal determinants of market participation. Nevertheless, the decision to participate in agricultural markets lies with the individual farming household. Under the New Institutional Economics (NIE), this decision is influenced by institutional factors such as risk and preferences, factors which affect household production and the level of costs associated with market transactions. These market transactions are commonly referred to as transaction costs. The study focused on investigating the institutions that limit the integration of small-scale mohair farmers into the commercial agricultural economy in Lesotho. The documentation and evaluation of the institutional structure of the mohair industry is performed whereby the institutional factors influencing participation of small-scale mohair farmers in formal, informal and illegal markets in Lesotho and factors contributing to transaction costs associated with the integration of small-scale farmers into the commercial mohair sector are investigated. Therefore, the investigation will help to address the institutional problems hindering the development of an effective marketing structure for the commercialisation of small-scale mohair producers in Lesotho. The results of the study show that the small-scale mohair farmers that use the formal markets are integrated into the commercial agricultural economy and these farmers' integration into the mainstream economy is influenced by access to government support in the form of shearing sheds, transport subsidies and advisory services. They also have access to market information, marketing infrastructure, knowledge of grades and standards and secure property rights. Other factors that helped their integration into the commercial economy is their contractual agreements with mohair buyers, path dependent based decision making as well as the collective approach to mohair farming. The small-scale mohair farmers using the informal markets do not receive the advantages received by the famers in the formal markets. These small-scale mohair farmers are not integrated into the commercial markets and their only option is the informal markets and their participation in these markets is enhanced by their marketing arrangements with the informal traders, culture influenced decisions, social capital and prompt payments. Despite integration into the commercial agricultural economy, small-scale farmers that use formal markets face the challenges of power imbalances, mistrust and conflicts which may affect this integration into the commercial markets if left unchecked. The study concludes that in the face of institutional challenges, the small-scale mohair farmers using the formal markets are integrated into the commercial agricultural economy and there is potential for improvement of their integration as well as the integration of the small-scale mohair farmers that use the informal markets if institutional challenges are addressed.
- Full Text:
- Date Issued: 2018
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