Mobile money and multidimensional energy poverty: a cross-national study of Burkina Faso and Togo

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Résumé

Using data from the FinScop survey (2016), this study aims to analyse the effect ofmobile money on multidimensional energy poverty (MEPI) in Burkina Faso and Togo.MEPI was calculated using the method of Alkire and Foster in 2011, and a linearregression based on the instrumental variable strategy was applied to control forendogeneity bias arising from the dual causality between energy poverty and mobilemoney. To test the robustness of our results, we used the endogenous switchingregression (ESR) model to resolve the problems of self-selection bias and endogeneity.The average effects of treatment on the treated (ATT) and the untreated (ATU) werecalculated from the coefficients of the ESR models. The incidence of multidimensionalenergy poverty was estimated at 90.7 and 91.1% in Burkina Faso and Togo, respect-ively. In addition, we found substantial differences between the subgroups in terms ofmultidimensional energy poverty in each of the countries. The results also robustlyindicate that an increase in mobile money adoption per standard deviation is associ-ated with a reduction in multidimensional energy poverty of −0.402 standard devia-tions in the case of Burkina Faso and −0.628 standard deviations in the case of Togo.We argue that mobile money can be an effective policy tool in the fight againstenergy poverty in developing countries.IMPACT STATEMENTThis research explores the impact of mobile money on multidimensional householdfuel poverty by focusing on two developing countries (Burkina Faso and Togo). Thecomparative study between these two countries aims to shed light on the mecha-nisms by which mobile money influences household energy poverty. By analysing theeffects of mobile money in different contexts, the study seeks to establish whetherthe results observed can be generalised. If the impact is similar in the two countriesdespite their differences, this would allow the conclusions to be applied on a moreglobal level. The results highlight the need to integrate mobile money into policiesaimed at reducing household energy poverty in developing countries.

Mots-clés

Burkina Faso; instrumentalvariable; mobile money;multidimensional energypoverty; Togo