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Income and energy use in Bangladesh: A household level analysis

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  • Hasan, Syed Abul
  • Mozumder, Pallab

Abstract

We examine how energy use at the household level moves with income in Bangladesh. Using the 2010 wave of Bangladesh Household Income and Expenditure Survey data, our analyses indicate a U-shaped relationship of both electricity use and other types of energy use (combined) with household expenditure. The findings imply that as income grows households increase their energy expenditure less than proportionally, up to a threshold level of income. Beyond the threshold income, energy use increases as a proportion of income, particularly for electricity use. We identify the threshold (turning point) for both electricity and other types of energy use. Based on the current level of expenditure and its growth, reaching the turning point would require 17years for the former category but only 7years for the latter group.

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  • Hasan, Syed Abul & Mozumder, Pallab, 2017. "Income and energy use in Bangladesh: A household level analysis," Energy Economics, Elsevier, vol. 65(C), pages 115-126.
    • Handle: RePEc:eee:eneeco:v:65:y:2017:i:c:p:115-126
    DOI: 10.1016/j.eneco.2017.05.006
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    More about this item

    Keywords

    Household energy expenditure; Energy Engel curve; Turning point;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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