Energy Transition towards Green Energy and its Implication in the Gambia

Abstract

This thesis analyses the transition towards green energy and its implication on the wellbeing of households and on sustainable development targets of the Gambia. Three specific objectives were analysed from secondary data sources through probit regression, PSM techniques and LEAP model. The study revealed that the adoption of solar energy was influenced by socioeconomic characteristics such as age, welfare indicators such as income, housing characteristic such as number of rooms and trust in local authorities. The adoption of solar energy had a positive impact on environmental quality. From the PSM results, it was evident that the adoption of solar energy has a positive impact on households’ welfare, using all four indicators of welfare. Using households’ income as a proxy for welfare, solar energy adoption lead to an increase in the income of households between 797.29-844.49 dalasi, increase in food consumption expenditure by 10.17-10.52 dalasi, increase households’ probability of becoming financially stable by 6.9-7.6% and increased the probability of a household becoming non-poor by 2.9-3%. Apart from BAU scenario that is pessimistic, all other scenarios provide optimism for the country in terms of commitment in economic growth and energy demand, energy supply diversification and reduction in GHG emissions. The commercial sector remains significant in energy demand in the country. Conclusively, the adoption of solar energy has both positive effect on the welfare of the households and the quality of environment in which the households live. It is recommended that the government of Gambia should consider introducing subsidized solar panels and its installation to households in other to minimise the impact of financial constraints on its adoption. The promotion of clean energy sources such as LPG is recommended.