Implications of “Energy Poverty “of the poor in India

Abstract

This master’s project examines the concept of energy poverty on micro level sample survey data collected from Indian households between November 2004 and October 2005. Energy poverty refers to the lack of access of poorer households’ to sufficient volumes of efficient means of energy for their daily use. Using statistical analysis, the study identifies variables that can explain energy poverty of households – i.e. are statistically significant in a model of energy poverty. It uses data collected by a Living Standards Measurement Study (LSMS) called Indian Human Development Survey (IHDS) 2005 contains information on levels of living, poverty and inequality in Indian households from direct interview questionnaires. This survey was designed and implemented by the University of Maryland in collaboration with the National Council of Applied Economic Research (NCAER), New Delhi. I model fuel type choice as a function of household consumption (as proxy for income), education level of adult female and male members, poverty, household size and place of residence. Consumption data is significant in defining choice of fuel type. Factors like education, place of living and household size are statistically significant in modifying the choices. The models conclude that use of polluting fuels is more prevalent in poorer households, household with lower education and in rural households. However, large family size is the biggest obstacle in adopting cleaner fuels. I also model the health impact of smoke produced by biomass traditional stove, by controlling for education of adult men and women, place of cooking, ventilation and consumption level of households. I examine mortality and morbidities associated with smoke exposure on men, women, children and younger children separately. Economic status of the household and education of females are statistically significant explanatory variables in controlling the impact of exposure to smoke on morbidity levels. I also find that children’s education is adversely affected by the health impacts of exposure to biomass based stove smoke.