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Income and energy use in Bangladesh: A household level analysis

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  • Syed Abul Hasan
  • Pallab Mozumder

Abstract

We examine how energy use at the household level moves with income growth 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 consumption. The findings imply that as income grows, households increase their energy use less than proportionally up to a threshold. Energy use beyond the threshold increases at a higher rate than total consumption, 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 consumption and its growth, reaching at the turning point would require 17 years for the former category but only 7 years for the latter group.

Suggested Citation

  • Syed Abul Hasan & Pallab Mozumder, 2017. "Income and energy use in Bangladesh: A household level analysis," Crawford School Research Papers 1701, Crawford School of Public Policy, The Australian National University.
    • Handle: RePEc:een:crwfrp:1701
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    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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