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A Bivariate Probit Model for Testing Joint Effect of Affordability and Desirability to Connect Electricity in Mtwara and Pwani Tanzania

Amina Suleiman Msengwa, Deogratias Matayo Bengesi Rugaimukamu

Abstract

 

The objective of this study is to determine perceptions of joint effect of affordability and desirability to connect electricity in a household to propose an appropriate advocacy strategy for the regions of Mtwara and Pwani in Tanzania. Bivariate probit model is used to analyse data involving 162 households. Constructed Likert Scales of delightful and wary perceptions on oil- and gas-based on three questions with Likert response formats are used as part of the explanatory set of variables in the model. Marginal mean effects of the bivariate probit model indicate that wary perceptions on the use of gas are statistically significant at the 5% level for joint affordability to connect and the desirability to connect electricity in own household. Since perceptions are usually rooted in the culture of a relevant community and can be nurtured through education and general information gathering, it is recommended that appropriate advocacy programmes be mounted in Pwani and Mtwara regions.

Keywords

probit model, perceptions, electricity, affordability, desirability

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