Financial inclusion and improved water usage among households in Ghana.

BACKGROUND: In Ghana, about 76% of households are at risk of drinking water polluted with faecal matter, hence, poor sanitation and unsafe water are responsible for 80% of all diseases in the country. Given this, some studies have been carried out concerning the factors that determine access and use of improved water among households in Ghana. However, although financial inclusion can make it easy for households to afford and hence, use improved water, it has received very little attention. This study, thus, examines the effect of financial inclusion on the use of improved water among households in Ghana. METHODS: The Ghana Living Standards Survey round 7 (GLSS7) is used as the data source while the binary logit regression is employed as the main empirical estimation technique. RESULTS: The results show that households with financial inclusion (employing an indicator which has not been disaggregated into formal and informal financial inclusion) have a higher likelihood of using improved water sources relative to those without financial inclusion. The results are robust using formal financial inclusion as well as a combined index of financial inclusion. CONCLUSION: Enhancing financial inclusion, especially formal financial inclusion can be utilised as a major policy instrument towards increasing access and use of improved water sources among households in Ghana.

The Choice of Healthy Source of Energy for Cooking Among Households in Ghana: Does Financial Inclusion Matter?

Air pollution resulting from the use of unhealthy/unclean energy sources for cooking causes illnesses such as lung cancer, stroke, chronic obstructive pulmonary disease and ischaemic heart disease. In Ghana, each year, about 18 000 deaths are recorded due to the use of unhealthy energy sources for cooking. While financial inclusion can influence the adoption of healthy energy sources for cooking, less attention has been paid to it. This study, therefore, investigates the effect of financial inclusion on the choice of healthy source of energy for cooking among households in Ghana. Doing so reveals whether financial inclusion can be employed as a tool to decrease the use of unhealthy sources of energy for cooking in Ghana. We employ the Ghana Living Standards Survey round 7 (GLSS7) as the data source for the study whiles the binary logistic regression is used as the estimation technique. The findings show that, households with financial inclusion (using a single indicator) are more likely to choose healthy sources of energy for cooking relative to those without financial inclusion (OR = 2.52, P < .01). Moreover, the effect of financial inclusion (using a single indicator) on choosing a healthy source of energy for cooking is greater among rural households (OR = 3.18, P < .01) relative to their urban counterparts (OR = 2.27, P < .01). The findings are robust even after using a different estimation technique and a combined index of financial inclusion. Thus, in the quest to improve the use of healthy sources of energy for cooking, enhancing financial inclusion among households, could be a useful strategy.