Multidimensional energy poverty and human well-being: household-level evidence from India

Abstract

Purpose This paper aims to assess the relationship between energy poverty and the well-being of people using Amartya Sen’s capability approach to development as theoretical underpinning. Design/methodology/approach The study uses household-level energy access data collected by the Harvard Dataverse in 2015 and 2018. The authors use multidimensional indices to measure energy poverty and well-being. Further, the authors apply quantile regression approach to measure the relationship between energy poverty and well-being. Findings The study’s findings reveal that energy poverty and well-being are negatively related. India has made progress in reducing energy poverty and improving well-being during the study period. However, progress in reducing energy poverty is largely due to improved access to electricity and improvement in well-being due to income and financial inclusion. Using modern cooking fuel has a greater negative impact on well-being compared to lighting using electricity. Further, households spending a greater proportion of their income on modern energy fuels leads to a lower quality of life as it precludes them from using it for other purposes. The study records wide variations in the observed relationship between energy poverty and well-being across various socioeconomic groups. Practical implications This calls for improvement in the production and distribution of modern energy resources, which have substantial welfare implications. Originality/value This is the first study to measure the relationship between energy poverty and quality of life using multidimensional indices. The findings of this paper have policy implications for the pricing of energy resources and energy access measures.