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Moving Up the Energy Ladder: The Effect of an Increase in Economic Well-Being on the Fuel Consumption Choices of the Poor in India

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  • Rema Hanna
  • Paulina Oliva

Abstract

Rising household wealth may potentially impact both total fuel consumption and fuel-type composition, resulting in significant health and environmental implications. Using data from a field experiment in India, we explore the effects of a transfer program that provided poor, rural households with greater levels of assets and cash. Total fuel consumption rose as a result of the transfers. Households shifted from using electricity rather than kerosene as their primary form of light, but total kerosene consumption also rose. In contrast, we did not observe a shift to cleaner cooking fuels.

Suggested Citation

  • Rema Hanna & Paulina Oliva, 2015. "Moving Up the Energy Ladder: The Effect of an Increase in Economic Well-Being on the Fuel Consumption Choices of the Poor in India," American Economic Review, American Economic Association, vol. 105(5), pages 242-246, May.
  • Handle: RePEc:aea:aecrev:v:105:y:2015:i:5:p:242-46
    Note: DOI: 10.1257/aer.p20151097
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    Citations

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    Cited by:

    1. Richmond, Jennifer & Urpelainen, Johannes, 2019. "Electrification and appliance ownership over time: Evidence from rural India," Energy Policy, Elsevier, vol. 133(C).
    2. Raul Jimenez & Ariel Yépez-García, 2016. "Composition and Sensitivity of Residential Energy Consumption," IDB Publications (Working Papers) 95257, Inter-American Development Bank.
    3. Bonan, Jacopo & Battiston, Pietro & Bleck, Jaimie & LeMay-Boucher, Philippe & Pareglio, Stefano & Sarr, Bassirou & Tavoni, Massimo, 2017. "Social Interaction and Technology Adoption: Experimental Evidence from Improved Cookstoves in Mali," MITP: Mitigation, Innovation and Transformation Pathways 263486, Fondazione Eni Enrico Mattei (FEEM).
    4. Do, Quy-Toan & Joshi, Shareen & Stolper, Samuel, 2018. "Can environmental policy reduce infant mortality? Evidence from the Ganga Pollution Cases," Journal of Development Economics, Elsevier, vol. 133(C), pages 306-325.
    5. Robyn Meeks & Katharine R. E. Sims & Hope Thompson, 2019. "Waste Not: Can Household Biogas Deliver Sustainable Development?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 72(3), pages 763-794, March.
    6. Dendup, Ngawang & Arimura, Toshi H., 2019. "Information leverage: The adoption of clean cooking fuel in Bhutan," Energy Policy, Elsevier, vol. 125(C), pages 181-195.
    7. Chang, Huayi & Zhang, Junbiao & He, Ke & Zeng, Yangmei, 2020. "Impact of off-farm employment on household clean energy consumption in rural China: A gender perspective," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304259, Agricultural and Applied Economics Association.
    8. Arik Levinson & James O'Brien, 2015. "Environmental Engel Curves," NBER Working Papers 20914, National Bureau of Economic Research, Inc.
    9. Calzada, Joan & Sanz, Alex, 2018. "Universal access to clean cookstoves: Evaluation of a public program in Peru," Energy Policy, Elsevier, vol. 118(C), pages 559-572.

    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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