UC Berkeley

We provide descriptive evidence on the challenges in efficiently, effectively, and fairly distributing in-kind electricity transfers to households. We collect panel data from 1200 households eligible for Ghana's COVID-19 electricity relief program. Distributing relief through electricity transfers enabled an immediate response to the crisis. Theoretical efficiency concerns are mitigated because transfers were inframarginal and storable for most households. Transfer receipt may have increased support for the governing party, possibly due to obfuscation of the program's financial burden. However, the program was regressive in design, and implementation challenges – delays, technological hurdles, information constraints, and the targeting of meters rather than households – add to inefficiency and regressivity. Households receiving the least average relief are those who use less electricity, pay a landlord or other intermediary for electricity, or share an electricity meter—characteristics of low-income households. Program implementation challenges were just as important as design features in determining program costs and benefits.