Clean energy transition and intertemporal socio-economic development: Evidence from an emerging market

Varsha Mamidi, Vijaya B. Marisetty and Ewan Nikhil Thomas

Energy Economics, 2021, vol. 101, issue C

Abstract: Lack of access to efficient energy comes with a huge cost in terms of health costs, monetary costs, and various socioeconomic consequences. In this paper, unlike the existing studies that focus on health and wellbeing effects associated with energy poverty, we investigate whether the household transition from polluting energy to clean energy leads to household socioeconomic development, in line with the UNDP human development index. Mapping households in two waves of Indian Human Development Survey Data 2005 and 2012, we find that compared to the matched sample of households that did not undergo transition into clean energy (control group), the households which underwent clear energy transition experience an average 12.2% improvement in their household development. Our results remain the same after testing for potential endogeneity. Contrary to our expectations, we also find that household consumption of polluting energy sources persists even with increased clean energy consumption. The stronger preference for polluting energy consumption demands both government intervention and further research.

Keywords: Energy poverty; Clean fuel transition; Fuel stacking; Socio-economic development; Household development index; Matching (search for similar items in EconPapers)
JEL-codes: I32 O13 Q40 Q41 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:101:y:2021:i:c:s0140988321002917

DOI: 10.1016/j.eneco.2021.105392

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