Energy transition, poverty and inequality: panel evidence from Vietnam

This paper investigates energy transition, energy poverty and energy inequality in Vietnam employing a longitudinal dataset of a nationally representative household survey. We use the data on residential energy expenditure of more than 9,000 households over the period 2004 - 2016. We find a transition from traditional energy to modern energy but this transition varies across regions, between ethnic and welfare groups and between rural and urban population. The poor and ethnic minority households still rely heavily on traditional energy sources such as coal and biomass to meet their energy demands. Electricity poverty has decreased but energy-cost poverty has increased. In addition, energy inequality tends to decrease at a more significant rate than income and consumption inequalities. We propose a national program for energy poverty alleviation be established to devise policies to lower households’ energy costs. Further assistance to the poor and ethnic minority households is also recommended so that they can afford a higher level of electricity consumption.