Multidimensional Energy Poverty in Pakistan: Empirical Evidence from Household Level Micro Data

Abstract

This paper estimates household level incidence and intensity of multidimensional energy poverty in Pakistan using a multidimensional energy poverty index with seven dimensions weighted based on their relative importance. Although being widely discussed in the literature as a basic human right for addressing energy access, reliable background estimates, and official statistics of national-level energy poverty are not available for Pakistan. This study thus provides necessary support in understanding energy poverty severity and the incidence with multiple dimensions. Some of the existing measurement approaches analyse multiple dimensions like lack of electricity access, access to clean cooking and heating fuels and inability to obtain sufficient and reliable amount of different energy services but are deficient in other vital dimensions. Hence, the study carried out a more comprehensive measurement with additional dimensions and indicators. Results analysing the Pakistan Social and Living Standards Measurement (PSLM) survey data for 2014–15 suggest that 55 percent of the households are multi-dimensionally energy-deprived in 30 percent of the selected dimensions in Pakistan. Robustness analysis depicts the change in multidimensional energy poverty estimates as a result of changes in energy poverty cut-off scores and weights. Results also provide insights into the underlying factors affecting multidimensional energy poverty in Pakistan.