Moving Up the Energy Ladder: The Effect of an Increase in Economic Well-Being on the Fuel Consumption Choices of the Poor in India
American Economic Review · 2015 · Volume 105 · Issue 5
Abstract
Rising household wealth may potentially impact both total fuel consumption and fuel-type composition, resulting in significant health and environmental implications. Using data from a field experiment in India, we explore the effects of a transfer program that provided poor, rural households with greater levels of assets and cash. Total fuel consumption rose as a result of the transfers. Households shifted from using electricity rather than kerosene as their primary form of light, but total kerosene consumption also rose. In contrast, we did not observe a shift to cleaner cooking fuels.
Keywords
Consumer Economics: Empirical Analysis, Taxation and Subsidies: Externalities, Redistributive Effects, Environmental Taxes and Subsidies, Health Behavior, General Welfare, Well-Being, Microeconomic Analyses of Economic Development, Economic Development: Agriculture, Natural Resources, Energy, Environment, Other Primary Products, Energy: Government Policy
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