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American Economic Review Vol. 105 No. 5 2015

Moving up the Energy Ladder: The Effect of an Increase in Economic Well-Being on the Fuel Consumption Choices of the Poor in India

Rema Hanna1; Paulina Oliva2

1 Harvard University, 79 JFK Street, Cambridge, MA 02138 (e-mail: ) · 2 UCSB, 2127 North Hall, University of California Santa Barbara, CA 93106 (e-mail: )

Abstract

Rising household wealth may potentially impact both total fuel consumption and fuel-type composition, resulting in significant health and environmental implications. Using data from a field experiment in India, we explore the effects of a transfer program that provided poor, rural households with greater levels of assets and cash. Total fuel consumption rose as a result of the transfers. Households shifted from using electricity rather than kerosene as their primary form of light, but total kerosene consumption also rose. In contrast, we did not observe a shift to cleaner cooking fuels.

DOI
10.1257/aer.p20151097
Volume
105
Issue
5
Pages
242-246
Language
en
Sources
bibtex:phds-export.bib crossref openalex

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