Non-linear analysis of the nexus between electricity access and income inequality in West Africa: verification by quantile regression method

Abstract

This study examines the effect of electricity access on income inequality in West Africa over the period 1990-2023. Using a quantile regression approach, the findings show that improved access to electricity generally reduces income disparities, with stronger effects in contexts characterized by higher levels of inequality. The analysis further reveals an inverted U-shaped relationship in rural areas: electricity access initially exacerbates income inequality due to financial barriers to connection, but subsequently promotes a more equitable income distribution once a critical coverage threshold is reached. The results also highlight the significant role of the agricultural sector in fostering income redistribution. These findings underscore the importance of inclusive electrification policies, particularly through connection subsidies, to enhance the contribution of energy access to inclusive growth and income inequality reduction.