Catching up with peers: Investigating the long-run dynamics of an LPG promotion program in Ghana

Abstract

Household energy transitions to cleaner fuels remain a major challenge in developing countries, which have low adoption rates of modern energy sources. This study investigated the long-run effects of a clean energy transition policy, focusing on a liquefied petroleum gas (LPG) promotion program in Ghana. We conducted household surveys in Ghana during 2020 and 2023, corresponding to 3 and 6 years after the end of the program, and collected longitudinal data from 1632 households (905 in 2020 and 727 in 2023). Our analyses show a short- term boost in LPG adoption among intervention households that received LPG cylinders from the program. Using a household fixed-effects approach, we find that, 6 years later, non-intervention households in the program community with children aged under 5 years increased their LPG adoption by 34.5 % relative to households without children, despite not having received direct support from the program. Further analysis reveals that the extension of LPG usage was limited to households with at least one peer in their social network who was an LPG user as well as the perception of LPG as a safe energy source for health. The findings suggest that energy transition can be promoted cost-effectively by incorporating the roles of social networks and information sharing, provided that fundamental infrastructure for LPG provision has been established.