Access to Energy and Sectoral Employment: Evidence in Developing Countries With Regard to Sustainable Development Goals 7 and 8

Abstract

ABSTRACT This study examines the effect of access to energy on sectoral employment in developing countries. Based on data collected from 120 countries over the period 2001–2023, the results shed new light on the link between energy access and employment. It shows that energy access, measured by access to electricity and access to clean cooking fuels and technologies, promotes employment in industry and services and reduces it in agriculture. The robustness of the results to alternative measures of access to energy, country income levels and estimation method is demonstrated. The study also shows that access to electricity promotes gender equality in employment and industry, while access to clean cooking fuels and technologies improves gender equality in agriculture and services. Our results show that human capital and information and communication technologies (ICTs) are the channels through which access to energy indirectly affects employment. Access to energy improves health and the diffusion of ICTs, which in turn increases employment in industry and services and decreases employment in agriculture. Aligned with Sustainable Development Goal (SDG) 8 (Promote inclusive and sustainable economic growth, employment and decent work for all) and SDG 7 (Ensure access to affordable, reliable, sustainable and modern energy for all), the main recommendations provided in the study consist of facilitating access to energy on the one hand, and improving the supply of health and ICT infrastructure on the other.