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The impact of Pradhan Mantri Ujjwala Yojana on Indian households

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  • Asharaf, Nabeel
  • Tol, Richard S.J.

Abstract

This study critically evaluates the impact of the Pradhan Mantri Ujjwala Yojana (PMUY) on LPG accessibility among poor households in India. Using Propensity Score Matching and Difference-in-Differences estimators and the National Family Health Survey (NFHS) dataset, the Average Treatment Effect on the intendedly Treated is a modest 2.1 percentage point increase in LPG consumption due to PMUY, with a parallel decrease in firewood consumption. Regional analysis reveals differential impacts, with significant progress in the North, West, and South but less pronounced effects in the East and North East. The study also underscores variance across social groups, with Scheduled Caste households showing the most substantial benefits, while Scheduled Tribes households are hardly affected. Despite the PMUY’s initial success in facilitating LPG access, sustaining its usage remains challenging. Policy should emphasise targeted interventions and address regional and community-specific disparities for the sustained usage of LPG.

Suggested Citation

  • Asharaf, Nabeel & Tol, Richard S.J., 2024. "The impact of Pradhan Mantri Ujjwala Yojana on Indian households," Economic Analysis and Policy, Elsevier, vol. 84(C), pages 878-897.
    • Handle: RePEc:eee:ecanpo:v:84:y:2024:i:c:p:878-897
    DOI: 10.1016/j.eap.2024.09.026
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    Keywords

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    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • 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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