Multi-dimensional energy poverty and inequality in Vietnam

Although Vietnam has improved electricity access significantly over recent decades, energy poverty remains a challenge, particularly among the disadvantaged population. Existing studies often overlook the complexity of energy poverty by focusing on single-dimensional measures. This study provides a comprehensive analysis of energy poverty across different households and regions in Vietnam between 2004 and 2020, focusing on multi-dimensional aspects and associated inequalities in energy poverty. Building on four main measures of energy poverty (10% indicator (TPR), low-income high-cost (LIHC), half-median spending (M2), and limited modern appliances (MOT)), we account for different dimensions of energy poverty, including income, expenditure, affordability, and access to modern technologies. A multi-dimensional energy poverty index (MEPI) measure computed by different statistical methods consistently reveals that energy poverty is mainly concentrated across districts in regions with low economic development and underdeveloped infrastructure. By leveraging household data and using the coefficient of variation, we also identify significant gaps in energy poverty levels within household socio-economic and demographic characteristics. We find the groups most vulnerable to energy poverty are households with the oldest or youngest heads, those with no formal schooling, single or widowed individuals, rural residents, and those in the lowest income quintile. The findings emphasize the need for targeted policies and programs, such as subsidies for vulnerable households, investment in rural energy infrastructure, and initiatives to enhance access to modern appliances. This study contributes to the broader understanding of energy poverty by offering a novel strategy for measuring energy poverty in a developing country and calls for action to reduce energy poverty and inequality and foster equitable access to energy in a developing country.