Access to Clean Cooking Technologies in Africa: Do Taxes on International Trade Matter?

What the paper says

ABSTRACT This study examines the linear and the non‐linear effects of international trade taxes on access to clean cooking technologies in Sub‐Saharan Africa between 2000 and 2023. The study adopts several robust estimation strategies, including the Driscoll–Kraay cross‐sectional dependence estimation, the two‐step system GMM approach, and the Dynamic Panel Thresholds strategy. The findings reveal a dual effect: while international trade taxes exert a positive linear impact at moderate levels, they produce a negative non‐linear effect once the tax rate surpasses a dynamic threshold of 5.039. The estimated dynamic threshold of 5.039% marks the turning point beyond which trade taxes negatively affect clean cooking access. The results are consistent across rural and urban populations, low and middle‐income economies, as well as between countries with low versus high energy import dependence, with the non‐linear effect most severe among high importers. Complementary factors such as internet penetration, trade openness, governance quality, and domestic credit significantly enhance access to clean cooking fuels and technologies. These results underscore the need for “smart” taxation policies that balance fiscal space generation with household affordability. Policy recommendations emphasise differentiated tariff regimes, strengthened credit markets, improved governance, and regional trade cooperation to accelerate universal clean cooking access in SSA.