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Why Rural Rich Remain Energy Poor

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  • Mirza, Bilal

    () (UNU-MERIT)

  • Kemp, Rene

    () (UNU-MERIT, ICIS, Maastricht University)

Abstract

The paper tries to explore the rationale behind the complexities of energy poverty among different income groups in rural communities. We attempted to understand why rural rich, despite their relatively high purchasing power use energy sources which tend to categorize them as energy poor. Using Energy Poverty Survey (EPS), a dataset of more than 600 rural households from 27 different rural communities of Punjab, Pakistan, we presented energy access situation in rural households among different income groups. Subsequently, we used logit to assess access factors which could impact the energy source choices among different income groups. The insignificance of household income for traditional biomass use and high significance of community remoteness indicators imply that households give high importance on the proximity of energy sources available to them and, in many cases, will prefer to be in the state of energy poor, than to use modern energy source like LPG.

Suggested Citation

  • Mirza, Bilal & Kemp, Rene, 2009. "Why Rural Rich Remain Energy Poor," MERIT Working Papers 024, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  • Handle: RePEc:unm:unumer:2009024
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    File URL: https://www.merit.unu.edu/publications/wppdf/2009/wp2009-024.pdf
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    References listed on IDEAS

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    Cited by:

    1. Hyun H. Son, 2013. "Inequality of Human Opportunities in Developing Asia," Asian Development Review, MIT Press, vol. 30(2), pages 110-130, September.
    2. Mensah, Justice Tei & Adu, George, 2015. "An empirical analysis of household energy choice in Ghana," Renewable and Sustainable Energy Reviews, Elsevier, vol. 51(C), pages 1402-1411.
    3. van der Kroon, Bianca & Brouwer, Roy & van Beukering, Pieter J.H., 2013. "The energy ladder: Theoretical myth or empirical truth? Results from a meta-analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 20(C), pages 504-513.
    4. Patel, Sameer & Khandelwal, Anish & Leavey, Anna & Biswas, Pratim, 2016. "A model for cost-benefit analysis of cooking fuel alternatives from a rural Indian household perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 56(C), pages 291-302.
    5. van der Kroon, Bianca & Brouwer, Roy & van Beukering, Pieter J.H., 2014. "The impact of the household decision environment on fuel choice behavior," Energy Economics, Elsevier, vol. 44(C), pages 236-247.

    More about this item

    Keywords

    energy poverty; rural rich; rural poor; rural communities; Punjab; Pakistan; fuelwood; animal waste; plant waste; kerosene; liquid petroleum gas;

    JEL classification:

    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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