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Income and energy use in Bangladesh: A household level analysis

Syed Hasan and Pallab Mozumder

Crawford School Research Papers from Crawford School of Public Policy, The Australian National University

Abstract: We examine how energy use at the household level moves with income growth in Bangladesh. Using the 2010 wave of Bangladesh Household Income and Expenditure Survey data, our analyses indicate a U-shaped relationship of both electricity use and other types of energy use (combined) with household consumption. The findings imply that as income grows, households increase their energy use less than proportionally up to a threshold. Energy use beyond the threshold increases at a higher rate than total consumption, particularly for electricity use. We identify the threshold (turning point) for both electricity and other types of energy use. Based on the current level of consumption and its growth, reaching at the turning point would require 17 years for the former category but only 7 years for the latter group.

Keywords: Household energy consumption; Energy Engel curve; Turning point (search for similar items in EconPapers)
JEL-codes: O13 D12 Q40 Q56 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2017-02
New Economics Papers: this item is included in nep-ene
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Persistent link: https://EconPapers.repec.org/RePEc:een:crwfrp:1701

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