Efficacies of technological progress and renewable energy transition in amplifying national electrification rates: contextual evidence from developing countries

Since electricity is a basic human need, improving its accessibility is of global relevance. Hence, this study considers data from 74 developing countries for understanding the macroeconomic factors influencing their national electrification rates. Although the income-group-specific findings exhibit heterogeneity, the overall results endorse the electrification rate-boosting impacts of technological progress, renewable energy transition, economic growth, and institutional quality improvement. Besides, the joint electrification rate-boosting effect of technological progress and renewable energy transition is affirmed, while higher income inequality and prices of crude oil are found to inhibit improvement in electrification rates in the developing countries of concern. Accordingly, several electrification rate-boosting policies are suggested.

Automated summary

This study examines the macroeconomic factors influencing national electrification rates in 74 developing countries. The results show that technological progress, renewable energy transition, economic growth, and institutional quality improvement can boost electrification rates. However, higher income inequality and crude oil prices inhibit improvement in electrification rates. Therefore, policy recommendations are suggested to enhance electrification rates.