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Electrification and Cooking Fuel Choice in Rural India

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  • Ridhima Gupta
  • Martino Pelli

Abstract

This study investigates the causal link between electrification and the adoption of modern (and cleaner) cooking fuels, more specifically Liquefied Petroleum Gas (LPG). In order to correct for the potential endogeneity in the placement of electrical infrastructure, we exploit an instrumental variable approach. Our instrument interacts state-level supply shifts in hydroelectric power availability with the initial level of electrification of each district. The results are consistent with a choice set expansion under a fixed budget constraint. We find that electrification leads to an increase in the probability of adoption of (free) biomass fuels and a decrease in the probability of adoption of (costly) modern cooking fuels. These results are statistically significant only for the poorest households in our sample, while they become statistically insignificant when we move to richer households. The same is true for the share of expenditure in a specific fuel. These results seem to indicate that electrification, by creating an additional strain on households' finances, pushes them back on the energy ladder.

Suggested Citation

  • Ridhima Gupta & Martino Pelli, 2021. "Electrification and Cooking Fuel Choice in Rural India," CIRANO Working Papers 2021s-19, CIRANO.
    • Handle: RePEc:cir:cirwor:2021s-19
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    Cited by:

    1. Ujjayant Chakravorty & Ridhima Gupta & Martino Pelli, 2022. "The economics of rural energy use in developing countries," CIRANO Working Papers 2022s-12, CIRANO.
    2. Li, Meng & Zhou, Shaojie, 2023. "Pollutive cooking fuels and rural labor supply: Evidence from a large-scale population census in China," Energy Policy, Elsevier, vol. 183(C).
    3. David Boisclair & Roxane Borgès Da Silva & Nathalie de Marcellis-Warin & Pierre-Carl Michaud & Ingrid Peignier, 2022. "Combien de personnes ont développé des symptômes ou contracté la Covid-19 au Québec ? Une étude exploratoire," CIRANO Working Papers 2022s-05, CIRANO.
    4. Guadalupe Pérez & Jorge M. Islas-Samperio & Genice K. Grande-Acosta & Fabio Manzini, 2022. "Socioeconomic and Environmental Aspects of Traditional Firewood for Cooking on the Example of Rural and Peri-Urban Mexican Households," Energies, MDPI, vol. 15(13), pages 1-30, July.
    5. Zhu, Xiaodong & Zhu, Zheng & Zhu, Bangzhu & Wang, Ping, 2022. "The determinants of energy choice for household cooking in China," Energy, Elsevier, vol. 260(C).
    6. Ma, Wanglin & Zheng, Hongyun & Gong, Binlei, 2022. "Rural income growth, ethnic differences, and household cooking fuel choice: Evidence from China," Energy Economics, Elsevier, vol. 107(C).
    7. Richard S. J. Tol, 2023. "Navigating the energy trilemma during geopolitical and environmental crises," Papers 2301.07671, arXiv.org.
    8. Akter, Sonia & Mathew, Nikhitha Mary & Fila, Marian Edward, 2023. "The impact of an improvement in the quality and reliability of rural residential electricity supply on clean cooking fuel adoption: Evidence from six energy poor Indian states," World Development, Elsevier, vol. 172(C).

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    More about this item

    Keywords

    Rural Electrification; Cooking Fuel; Energy Ladder; Fuel Stacking;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • 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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