Moving Up the Energy Ladder: The Effect of a Permanent Increase in Assets on Fuel Consumption Choices in India

Hanna, Rema; Oliva, Paulina (2015)


Hanna, Rema, and Paulina Oliva. 2015. “Moving Up The Energy Ladder: The Effect Of A Permanent Increase In Assets On Fuel Consumption Choices In India”. American Economic Review 105 (5): 242-246.
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.