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Inequality in Electricity Consumption and Economic Growth: Evidence from a Small Area Estimation Study

Author

Listed:
  • Nguyen, Cuong Viet
  • Nguyen, Khuong Duc
  • Tran, Tuyen Quang

Abstract

Our study uses a small area estimation method to estimate the average and inequality of per capita kWh consumption for small areas in Vietnam. It shows evidence of a large spatial heterogeneity in the electric power consumption between districts and provinces in Vietnam. Households in the mountains and highlands consumed remarkably less electricity than those in the delta and coastal areas. Notably, we find a U-shaped relationship between the inequality of electricity consumption and economic levels in Vietnam. In poor districts and provinces, there is very high inequality in electricity consumption. Inequality is lower in middle-income districts and provinces.

Suggested Citation

  • Nguyen, Cuong Viet & Nguyen, Khuong Duc & Tran, Tuyen Quang, 2021. "Inequality in Electricity Consumption and Economic Growth: Evidence from a Small Area Estimation Study," GLO Discussion Paper Series 945, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:945
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    Keywords

    Electricity consumption; Energy inequality; Economic growth; Small area estimation; Vietnam;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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