Energy poverty trends and determinants in Pakistan: Empirical evidence from eight waves of HIES 1998–2019

Ashar Awan, Faik Bilgili and Dil Rahut

Renewable and Sustainable Energy Reviews, 2022, vol. 158, issue C

Abstract: United Nations Sustainable Development Goals (SDGs) have incorporated clean and affordable fuel access as the 7th goal because energy is crucial for economic development and well-being. However, the increase in energy prices, volatility, removal of subsidies, fiscal burden and limited access to modern fuel, and financial burden on the households have led to an increase in energy poverty. Although energy poverty is widely prevalent worldwide, it is more pervasive in developing countries. Yet, there is limited research on energy poverty in developing countries, and the government policy and program do not focus on energy poverty. Therefore, this study examines the energy poverty trend and factors influencing energy poverty in Pakistan using eight rounds of nationally representative Household Income and Expenditure (HIES) survey data collected during 1998–2019. This research adopted two different measures of energy poverty, namely ten percent and double median. The result shows that despite significant economic progress, energy poverty has increased during the last two decades. The study further investigated the determinants of energy poverty in Pakistan using the Probit model, and the results revealed that households with a low endowment, less education, and female-headed families are more likely to be energy poor. Given Pakistan's current energy poverty situation, it is challenging to meet SDG 7 of providing clean and affordable energy access to all by 2030. Therefore, sizeable clean energy programs targeting the poor with low education, families living in rural areas, and female-headed households are needed.

Keywords: Energy poverty; Assets; Pakistan; Education; HIES; Ten percent; Double median approach; Affordability; Energy social impacts; Inclusion (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (12)

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DOI: 10.1016/j.rser.2022.112157

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