Moving up the Energy Ladder: The Effect of an Increase in Economic Well-Being on the Fuel Consumption Choices of the Poor in India | Zendy

Rema Hanna | Zendy; Paulina Oliva | Zendy

Open Access

Moving up the Energy Ladder: The Effect of an Increase in Economic Well-Being on the Fuel Consumption Choices of the Poor in India

Author(s) -

Rema Hanna,

Paulina Oliva

Publication year - 2015

Publication title -

american economic review

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 16.936

H-Index - 297

eISSN - 1944-7981

pISSN - 0002-8282

DOI - 10.1257/aer.p20151097

Subject(s) - kerosene , economics , consumption (sociology) , agricultural economics , electricity , cash , fuel efficiency , natural resource economics , macroeconomics , engineering , social science , chemistry , organic chemistry , aerospace engineering , sociology , electrical engineering

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.

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