Digital Innovation in Ghana – Interventions Targeted at Addressing Leakage

Researchers will study Ghana’s Premix Fuel Program, a large conditional transfer program subsidizing premix fuel for fishermen in Ghana. Subsidized fuel is hoarded, creating artificial shortages and prices that defy the program’s spirit. Researchers will partner with the National Premix Fuel Secretariat, which manages the program. The Secretariat is preparing to roll out a nationwide program that will digitize access to subsidized fuel to reduce leakages. As some evaluation has already taken place, the technical feasibility of the process is not in question. 

The rollout of the digitization program will be staggered. First, randomization across landing the 315 beaches (communities) will determine the timing of the staggered rollout. Second, researchers will survey fishermen and villagers to track: fuel usage, leakage, and economic/environmental/social outcomes the digitization may improve, including community-wide spillovers and general equilibrium effects. Researchers will implement innovative measures for fuel diversion and quality: administrative data on the amount of fuel delivered to the community versus survey data and audit studies to estimate black-market prices and quantities. Researchers will also deploy Quality Assurance Teams to measure the quality of premix fuel in circulation across communities. Lastly, researchers will use high-frequency measures of air pollution by installing outdoor monitors and using available satellite and remote sensing data.