Income and electricity poverty in Vietnam 2012-16

Hoai Son Nguyen () and Minh Ha-Duong
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Hoai Son Nguyen: NEU - National Economics University (Ha Noi, Vietnam), CleanED - Clean Energy and Sustainable Development Lab - USTH - University of Science and Technology of Hanoi

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Abstract: The document studies income and electricity poverty in Vietnam from 2012 to 2016. The study aims to determine if there is an income threshold at which electricity consumption starts to increase, and whether this threshold varies between urban and rural areas. Utilizing Vietnam Household Living Standard Surveys and data on electricity prices and temperature, the research applies a quantile-based approach to estimate the relationship between income and kWh consumption. The findings suggest that the electricity poverty threshold, the minimum level of electricity a household needs for basic needs, is about 50 kWh/month, which is higher than the current threshold of 30 kWh/month used for subsidy policies. The study acknowledges limitations, including possible measurement errors in applying retail prices to the entire sample and the use of data from only 14 weather stations for temperature.

Date: 2019-07-17
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Published in The 11th Vietnam Economists Annual Meeting (VEAM 2019), Dalat University, Jul 2019, Da Lat, Vietnam

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04486771

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