Efficacies of Technological Progress and Renewable Energy Transition in Amplifying National Electrification Rates

Abstract

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.