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An Investigation of Multidimensional Energy Poverty in Pakistan

Author

Listed:
  • Rehmat Ullah Awan

    (Department of Economics, University of Sargodha, Pakistan)

  • Falak Sher

    (Department of Economics, University of Sargodha, Pakistan)

  • Akhtar Abbas

    (Department of Economics, University of Sargodha, Pakistan)

Abstract

This study uses Alkire and Foster’s (2007) methodology to measure Multidimensional Energy Poverty in Pakistan using Pakistan Social Living standard Measurement (PSLM) data for 2007-08. This measure also satisfies the property of decomposability. Multidimensional Energy Poverty Index (MEPI) has been calculated. Value of MEP headcount for rural Pakistan is 71 percent as compared to 29 percent in urban areas of Pakistan. Multidimensional Energy Poverty headcount for rural Pakistan is 71.4 percent and 28.6 percent of the households residing in rural areas of Pakistan are energy poor. Households of Pakistan are most deprived in cooking fuel dimension (55 percent) while deprivation is the least in dimension of home appliances ownership (15 percent). In urban areas of Pakistan, households are more deprived in dimension of cooking fuels (23 percent) followed by indoor pollution (19 percent). Almost one third households of rural Pakistan are deprived in dimension of indoor pollution (69 percent). Contribution of indoor pollution (32 percent) to multidimensional energy poverty headcount in Pakistan is the highest followed by the cooking fuels dimension (31 percent) and collectively these two dimensions contribute up to 63 percent in overall Multidimensional Energy Poverty headcount for Pakistan. Study further concludes that households deprivation in energy decreases with the increase in value of cut offs. Overall indoor pollution, cooking fuel and entertainment appliances are the three major contributors, to overall MEP headcount not only as a whole but region wise also. Based on results, the study established that there is significant and higher incidence and severity of energy poverty in rural areas as compared to urban areas in Pakistan

Suggested Citation

  • Rehmat Ullah Awan & Falak Sher & Akhtar Abbas, 2013. "An Investigation of Multidimensional Energy Poverty in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 52(4), pages 405-419.
  • Handle: RePEc:pid:journl:v:52:y:2013:i:4:p:405-419
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    Keywords

    Multidimensional Energy Poverty; Energy Poverty; Poverty Measurement; Multidimensional Energy Poverty Index (MEPI); Decomposability; Deprivation; Intensity of Poverty;

    JEL classification:

    • I00 - Health, Education, and Welfare - - General - - - General
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q49 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Other

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