Assessment of Climate Change Impact and Renewable Energy Generation in West Africa: A Case Study of Off-Grid Solar Access in Rural Togo

Abstract

This study examines the relationship between climate change and access to modern energy services in West Africa. The researchers used a Panel Error Correction Regression Model (PECM) based on climate and macroeconomic data collected from 12 West African countries between 1990 and 2019. The results of the study indicate that climate change reduces agricultural value added, while renewable energy consumption increases agricultural participation in the economy by about 47% in the long run. In addition, renewable energy consumption reduces the economic impact of climate change in both the short and long term. The researchers also conducted a household survey of 327 households in the rural Plateau region of Togo to estimate Multidimensional Energy Poverty Indices (MEPI). The results showed that energy poverty in rural Togo is mainly due to expenditure-based energy poverty and the type of energy used for cooking. Female-headed households are more vulnerable to energy poverty in the region. The researchers also used a choice modelling approach based on the same target population to estimate farmers' willingness to pay for the adoption of off-grid solar systems in rural Togo. The results showed that awareness of weather risk challenges plays a role in increasing willingness to pay for modern energy solutions in rural areas. To combat climate change and reduce energy poverty in West Africa, promoting the adoption of renewable energy services is crucial. Off-grid solar systems should be targeted for the development of small-scale economic activities, not just for household lighting. This could generate additional income that could be used to address energy affordability issues.