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From Income to Household Welfare: Lessons from Refrigerator Ownership in India

Author

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  • Sowmya Dhanaraj

    (Madras School of Economics)

  • Vidya Mahambare

    (Great Lakes Institute of Management)

  • Poonam Munjal

    (National Council of Applied Economic Research)

Abstract

This paper draws implications for the energy and education policies in developing countries based on the insights derived from studying the determinants of household refrigerator ownership in India. In our study the failure of the government policies to ensure reliable public services such as uninterrupted power supply and improving female education levels turn out to be the key stumbling blocks to raising household welfare in India. While a threshold level of household income is necessary for a purchase of a consumer durable, it is not a sufficient condition. Our results for the determinants of refrigerator ownership in India suggest that, even when households have sufficient purchasing power, the duration of a complementary good (electricity for >17 h per day) is critical for the ownership, all else held constant. Also, females in households tend to derive greater utility from the refrigerator usage due to its impact on lowering household burden of work and easing women’s entry into the labour market. Our results confirm the hypothesis that when women bargaining power is proxied by the level of education, households with a female with higher level of education have higher probability of refrigerator ownership.

Suggested Citation

  • Sowmya Dhanaraj & Vidya Mahambare & Poonam Munjal, 2018. "From Income to Household Welfare: Lessons from Refrigerator Ownership in India," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 16(2), pages 573-588, June.
    • Handle: RePEc:spr:jqecon:v:16:y:2018:i:2:d:10.1007_s40953-017-0084-5
    DOI: 10.1007/s40953-017-0084-5
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    Cited by:

    1. Debnath, Ramit & Bardhan, Ronita & Sunikka-Blank, Minna, 2019. "How does slum rehabilitation influence appliance ownership? A structural model of non-income drivers," Energy Policy, Elsevier, vol. 132(C), pages 418-428.
    2. Richmond, Jennifer & Urpelainen, Johannes, 2019. "Electrification and appliance ownership over time: Evidence from rural India," Energy Policy, Elsevier, vol. 133(C).
    3. Neto-Bradley, André Paul & Choudhary, Ruchi & Bazaz, Amir, 2020. "Slipping through the net: Can data science approaches help target clean cooking policy interventions?," Energy Policy, Elsevier, vol. 144(C).
    4. Poblete-Cazenave, Miguel & Pachauri, Shonali, 2020. "A simulation-based estimation model of household electricity demand and appliance ownership," MPRA Paper 103403, University Library of Munich, Germany.
    5. Bharadwaj, Bishal & Subedi, Mukti Nath & Malakar, Yuwan & Ashworth, Peta, 2023. "Low-capacity decentralized electricity systems limit the adoption of electronic appliances in rural Nepal," Energy Policy, Elsevier, vol. 177(C).
    6. Muza, Olivia & Debnath, Ramit, 2021. "Disruptive innovation for inclusive renewable policy in sub-Saharan Africa: A social shaping of technology analysis of appliance uptake in Rwanda," Renewable Energy, Elsevier, vol. 168(C), pages 896-912.
    7. Ramit Debnath & Gianna Monteiro Farias Simoes & Ronita Bardhan & Solange Maria Leder & Roberto Lamberts & Minna Sunikka-Blank, 2020. "Energy Justice in Slum Rehabilitation Housing: An Empirical Exploration of Built Environment Effects on Socio-Cultural Energy Demand," Sustainability, MDPI, vol. 12(7), pages 1-27, April.
    8. Poblete-Cazenave, Miguel & Pachauri, Shonali, 2021. "A model of energy poverty and access: Estimating household electricity demand and appliance ownership," Energy Economics, Elsevier, vol. 98(C).

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    More about this item

    Keywords

    Economic development: urban; rural; Household behaviour; Family structure; Econometric modelling; ownership analysis;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations

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