Ethnicity/caste-based social differentiation and the consumption of clean cooking energy in Nepal: An exploration using panel data

Abstract

Using a three-year panel data (2016–2018) of about 6000 households per year in Nepal, this study assesses the association between ethnicity and caste-based social differentiation and the consumption of clean cooking energy. This study applies a random effect logit model for analysing the factors explaining the choice of clean cooking energy and, in particular, the role of ethnicity/caste. To further examine the clean energy gap among different ethnicities and castes, this study applied exogenous switching treatment effect regression (ESTER). The results show that Dalits and Ethnic minorities are less likely to use clean cooking energy and the findings remain the same across all reasonable model specifications. More disaggregated analysis shows that Madheshi Dalit households are worse off, followed by Hill Dalit, Madheshi low-caste, Terai Adivasi, Other ethnic groups, and Hill Chhetri. The results of ESTER show that the difference observed in the use of clean cooking fuels between ethnic minorities and others is better explained by their base heterogeneity effects, while the clean cooking fuel differences between Dalits and non-Dalits are explained by both base heterogeneity and the treatment effects. It means that, unlike non-Dalit ethnic minorities, Dalits faced differential treatment due to their low caste position as well as their low-endowment ownership. Another major finding is that differences in endowment and education level largely explain differences in energy use. Hence, while assessing differences in energy use by caste/ethnic groups, one must control for the endowment and other human capital differences across the households that fall under different income or consumption quantiles. Clean energy policy should focus on improving access to clean energy, and it should pay particular attention to the Dalit communities and, to some extent, non-Dalit minorities by providing easy access and improving their purchasing power by increasing their asset endowment and income.