American Economic Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
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
vol. 105,
no. 5, May 2015
(pp. 242–46)
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.Citation
Hanna, Rema, and Paulina Oliva. 2015. "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 105 (5): 242–46. DOI: 10.1257/aer.p20151097Additional Materials
JEL Classification
- D12 Consumer Economics: Empirical Analysis
- H23 Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- I12 Health Behavior
- I31 General Welfare; Well-Being
- O12 Microeconomic Analyses of Economic Development
- O13 Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
- Q48 Energy: Government Policy