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Switching off or switching source: energy consumption and household response to higher energy prices in the Kyrgyz Republic

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  • Gassmann, Franziska

    ()
    (UNU-MERIT / MGSoG)

  • Tsukada, Raquel

    ()
    (UNU-MERIT / MGSoG)

Abstract

Access to energy is fundamental to improving quality of life and is a key imperative for economic development" (Energy Poverty Action). This is particularly true in Central Asia where winters are harsh and long. Changes in energy prices affect the purchasing power of households, hitting the poor in particular. The impact very much depends on a household's energy basket and the available strategies for switching to alternative energy sources. Using data from the Kyrgyz Integrated Household Survey (KIHS) 2011, this paper analyzes the profile of household energy consumption and the impact of electricity tariff increases on the probability that households would switch to alternative energy sources. Results suggest that households would respond to an electricity price increase by increasing consumption of fuels: households would tend to move away from electricity-only heating source towards the use of stove-only.

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Bibliographic Info

Paper provided by United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT) in its series MERIT Working Papers with number 047.

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Date of creation: 2013
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Handle: RePEc:unm:unumer:2013047

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Keywords: energy; household consumption; Central Asia; Kyrgyz Republic;

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  1. Ersado, Lire, 2012. "Poverty and distributional impact of gas price hike in Armenia," Policy Research Working Paper Series 6150, The World Bank.
  2. Gassmann, Franziska, 2012. "Switching the lights off: The impact of energy tariff increases on households in the Kyrgyz Republic," MERIT Working Papers 066, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  3. Silva, Patricia & Klytchnikova, Irina & Radevic, Dragana, 2009. "Poverty and environmental impacts of electricity price reforms in Montenegro," Utilities Policy, Elsevier, vol. 17(1), pages 102-113, March.
  4. Heltberg, Rasmus, 2005. "Factors determining household fuel choice in Guatemala," Environment and Development Economics, Cambridge University Press, vol. 10(03), pages 337-361, June.
  5. Price, Catherine Waddams & Pham, Khac, 2009. "The impact of electricity market reform on consumers," Utilities Policy, Elsevier, vol. 17(1), pages 43-48, March.
  6. Heltberg, Rasmus, 2004. "Fuel switching: evidence from eight developing countries," Energy Economics, Elsevier, vol. 26(5), pages 869-887, September.
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