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Is electricity affordable and reliable for all in Vietnam?

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  • Minh Ha-Duong

    (CIRED - centre international de recherche sur l'environnement et le développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

  • Hoai Son Nguyen

    (CIRED - centre international de recherche sur l'environnement et le développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

Abstract

Access to clean and affordable energy for all is the seventh sustainable development goal. This manuscript examines the state of access to electricity for all in Vietnam, based on national households' surveys conducted in the time period 2008-2014. We find that in Vietnam, the problem of providing access to clean energy for all is largely solved for now: the fraction of households without access to electricity is below two percent, the median level of electricity usage in 2014 was 100 kWh per month per household, the fraction of households declaring unsatisfied electricity needs is below three percent. We find that electricity is becoming a heavier burden in Vietnamese households' finances. In 2010, the electricity bill exceeded 6% of income for 2.4% of households, but in 2014 that number reached 5.5% of households. In practical terms, we discuss the challenge of a socially just increase of electricity tariff, necessary to finance a clean development of energy system. Our theoretical contribution to debates on energy poverty is to account for the human dimension by using a self-reported satisfaction indicator. Our study shows that subjective energy poverty indicators –designed from surveys asking people if they had enough electricity to meet their households needs– are as relevant as objective indicators –from engineering or economic data. While objectivity is laudable, development is not only about technology and money: measuring human satisfaction matters.

Suggested Citation

  • Minh Ha-Duong & Hoai Son Nguyen, 2018. "Is electricity affordable and reliable for all in Vietnam?," CIRED Working Papers hal-01692453, HAL.
  • Handle: RePEc:hal:ciredw:hal-01692453
    Note: View the original document on HAL open archive server: https://hal.science/hal-01692453
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    References listed on IDEAS

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    1. He, Xiaoping & Reiner, David, 2016. "Electricity demand and basic needs: Empirical evidence from China's households," Energy Policy, Elsevier, vol. 90(C), pages 212-221.
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    5. repec:mpr:mprres:4832 is not listed on IDEAS
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    Cited by:

    1. Duy Chinh Nguyen & Huu Dung Hoang & Huu Tien Hoang & Quang Trung Bui & Lan Phuong Nguyen, 2019. "Modal Preference in Ho Chi Minh City, Vietnam: An Experiment With New Modes of Transport," SAGE Open, , vol. 9(2), pages 21582440198, April.
    2. Giuseppina Siciliano & Linda Wallbott & Frauke Urban & Anh Nguyen Dang & Markus Lederer, 2021. "Low‐carbon energy, sustainable development, and justice: Towards a just energy transition for the society and the environment," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(6), pages 1049-1061, November.
    3. Medeiros, Victor & Ribeiro, Rafael Saulo Marques, 2020. "Power infrastructure and income inequality: Evidence from Brazilian state-level data using dynamic panel data models," Energy Policy, Elsevier, vol. 146(C).
    4. Elliott, Robert J.R. & Nguyen-Tien, Viet & Strobl, Eric A., 2021. "Power outages and firm performance: A hydro-IV approach for a single electricity grid," Energy Economics, Elsevier, vol. 103(C).
    5. Feeny, Simon & Trinh, Trong-Anh & Zhu, Anna, 2021. "Temperature shocks and energy poverty: Findings from Vietnam," Energy Economics, Elsevier, vol. 99(C).
    6. Lam Do, Truong Phuong, 2021. "Retail Electricity Subsidy in Vietnam : Review and Welfare Effect Under Reform," Warwick-Monash Economics Student Papers 31, Warwick Monash Economics Student Papers.
    7. Manh-Hung Nguyen, 2021. "A Resilient Energy System to Climate change," Post-Print hal-04044554, HAL.
    8. Bakkensen, Laura & Schuler, Paul, 2020. "A preference for power: Willingness to pay for energy reliability versus fuel type in Vietnam," Energy Policy, Elsevier, vol. 144(C).

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    Keywords

    Vietnam; Sustainable Development Goals; Indicators; Electricity;
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