Assessing the Impact of Income Decline on Household Clean Fuel Choice: Evidence from the Kyrgyz Republic

Kamalbek Karymshakov () and Dina Azhgaliyeva ()
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Kamalbek Karymshakov: Kyrgyz-Turkish Manas University
Dina Azhgaliyeva: Asian Development Bank

No 773, ADB Economics Working Paper Series from Asian Development Bank

Abstract: Low-carbon energy transition, which includes the replacement of fossil fuels with low-carbon energy infrastructure, the removal of subsidies, and other measures, requires households to be able to pay for low-carbon energy services. Economic shocks such as the coronavirus disease pandemic and high inflation make paying for energy challenging for households. We use the Kyrgyz Integrated Household Survey data (2019–2021) to study the impact of income decline on energy consumption. We provide the following key results. First, the empirical results show that the effects of income decline on household energy consumption vary (positive or negative) according to income group. Second, the low-income group with income decline reduced energy consumption, while the higher income group (second quartile) increased energy consumption.

Keywords: household energy consumption; coal consumption; fossil fuel consumption; income decline; Central Asia; energy transition (search for similar items in EconPapers)
JEL-codes: Q31 Q41 Q48 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2025-04-04
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