IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v164y2022ics0301421522001409.html
   My bibliography  Save this article

The need to prioritize consumption: A difference-in-differences approach to analyze the total effect of India's below-the-poverty-line policies on LPG use

Author

Listed:
  • Gill-Wiehl, Annelise
  • Brown, Timothy
  • Smith, Kirk

Abstract

In 2016, India introduced the Pradhan Mantri Ujjwala Yojana (PMUY) policy, which offers below-the-poverty-line (BPL) households a free liquified petroleum gas (LPG) connection. Simultaneously, the National and State governments implemented numerous health, housing, and other programs also targeting BPL households. Using a difference-in-differences approach with a non-equivalent comparison group, we provide causal evidence of the total effect of BPL policies on the probability of obtaining an LPG connection, overall LPG consumption, opting for home delivery, and clean cooking access. Using a two-part model of LPG use, the total effect of the policies is a 7.9 and 8 percentage point increase (46.4% and 50.0% change) in the probability of an increase in any positive LPG use for BPL households but no change in the magnitude of LPG use among households with any positive LPG use. We calculate that the overall increase in LPG use due to BPL policies was 0.68 kg per household. We find no effect for home delivery or cooking energy access tier. Our work suggests the need to expand the policy to address consumption more effectively. Finally, this analysis advocates investigation into consumption incentives and the size of the refill subsidy beyond simply improved targeting of BPL households.

Suggested Citation

  • Gill-Wiehl, Annelise & Brown, Timothy & Smith, Kirk, 2022. "The need to prioritize consumption: A difference-in-differences approach to analyze the total effect of India's below-the-poverty-line policies on LPG use," Energy Policy, Elsevier, vol. 164(C).
    • Handle: RePEc:eee:enepol:v:164:y:2022:i:c:s0301421522001409
    DOI: 10.1016/j.enpol.2022.112915
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421522001409
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2022.112915?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Narasimha Rao, M. & Reddy, B. Sudhakara, 2007. "Variations in energy use by Indian households: An analysis of micro level data," Energy, Elsevier, vol. 32(2), pages 143-153.
    2. Karimu, Amin & Mensah, Justice Tei & Adu, George, 2016. "Who Adopts LPG as the Main Cooking Fuel and Why? Empirical Evidence on Ghana Based on National Survey," World Development, Elsevier, vol. 85(C), pages 43-57.
    3. Paudel, Uttam & Khatri, Umesh & Pant, Krishna Prasad, 2018. "Understanding the determinants of household cooking fuel choice in Afghanistan: A multinomial logit estimation," Energy, Elsevier, vol. 156(C), pages 55-62.
    4. Rahul Ranjan & Sudershan Singh, 2020. "Household Cooking Fuel Patterns in Rural India: Pre- and Post-Pradhan Mantri Ujjwala Yojana," Indian Journal of Human Development, , vol. 14(3), pages 518-526, December.
    5. Chindarkar, Namrata & Jain, Abhishek & Mani, Sunil, 2021. "Examining the willingness-to-pay for exclusive use of LPG for cooking among rural households in India," Energy Policy, Elsevier, vol. 150(C).
    6. Kimemia, David & Annegarn, Harold, 2016. "Domestic LPG interventions in South Africa: Challenges and lessons," Energy Policy, Elsevier, vol. 93(C), pages 150-156.
    7. Sant’Anna, Pedro H.C. & Zhao, Jun, 2020. "Doubly robust difference-in-differences estimators," Journal of Econometrics, Elsevier, vol. 219(1), pages 101-122.
    8. Abhishek Kar & Shonali Pachauri & Rob Bailis & Hisham Zerriffi, 2019. "Using sales data to assess cooking gas adoption and the impact of India’s Ujjwala programme in rural Karnataka," Nature Energy, Nature, vol. 4(9), pages 806-814, September.
    9. D. R. Cox, 1972. "The Analysis of Multivariate Binary Data," Journal of the Royal Statistical Society Series C, Royal Statistical Society, vol. 21(2), pages 113-120, June.
    10. Gould, Carlos F. & Schlesinger, Samuel B. & Molina, Emilio & Bejarano, M. Lorena & Valarezo, Alfredo & Jack, Darby W., 2020. "Household fuel mixes in peri-urban and rural Ecuador: Explaining the context of LPG, patterns of continued firewood use, and the challenges of induction cooking," Energy Policy, Elsevier, vol. 136(C).
    11. Heltberg, Rasmus, 2005. "Factors determining household fuel choice in Guatemala," Environment and Development Economics, Cambridge University Press, vol. 10(3), pages 337-361, June.
    12. Gary Solon & Steven J. Haider & Jeffrey M. Wooldridge, 2015. "What Are We Weighting For?," Journal of Human Resources, University of Wisconsin Press, vol. 50(2), pages 301-316.
    13. Lechner, Michael, 2011. "The Estimation of Causal Effects by Difference-in-Difference Methods," Foundations and Trends(R) in Econometrics, now publishers, vol. 4(3), pages 165-224, November.
    14. Susan Athey & Guido W. Imbens, 2017. "The State of Applied Econometrics: Causality and Policy Evaluation," Journal of Economic Perspectives, American Economic Association, vol. 31(2), pages 3-32, Spring.
    15. Feng, Tong & Du, Huibin & Coffman, D'Maris & Qu, Aiyu & Dong, Zhanfeng, 2021. "Clean heating and heating poverty: A perspective based on cost-benefit analysis," Energy Policy, Elsevier, vol. 152(C).
    16. Sehjpal, Ritika & Ramji, Aditya & Soni, Anmol & Kumar, Atul, 2014. "Going beyond incomes: Dimensions of cooking energy transitions in rural India," Energy, Elsevier, vol. 68(C), pages 470-477.
    17. Masera, Omar R. & Saatkamp, Barbara D. & Kammen, Daniel M., 2000. "From Linear Fuel Switching to Multiple Cooking Strategies: A Critique and Alternative to the Energy Ladder Model," World Development, Elsevier, vol. 28(12), pages 2083-2103, December.
    18. Rao, P. Sharath Chandra & Miller, Jeffrey B. & Wang, Young Doo & Byrne, John B., 2009. "Energy-microfinance intervention for below poverty line households in India," Energy Policy, Elsevier, vol. 37(5), pages 1694-1712, May.
    19. Gould, Carlos F. & Urpelainen, Johannes, 2018. "LPG as a clean cooking fuel: Adoption, use, and impact in rural India," Energy Policy, Elsevier, vol. 122(C), pages 395-408.
    20. Smith, Kirk R. & Sagar, Ambuj, 2014. "Making the clean available: Escaping India’s Chulha Trap," Energy Policy, Elsevier, vol. 75(C), pages 410-414.
    21. Richenda Van Leeuwen & Alex Evans & Besnik Hyseni, 2017. "Increasing the Use of Liquefied Petroleum Gas in Cooking in Developing Countries," World Bank Publications - Reports 26569, The World Bank Group.
    22. Sunil Mani & Abhishek Jain & Saurabh Tripathi & Carlos F. Gould, 2020. "The drivers of sustained use of liquified petroleum gas in India," Nature Energy, Nature, vol. 5(6), pages 450-457, June.
    23. Troncoso, Karin & Soares da Silva, Agnes, 2017. "LPG fuel subsidies in Latin America and the use of solid fuels to cook," Energy Policy, Elsevier, vol. 107(C), pages 188-196.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sarath K. Guttikunda & Sai Krishna Dammalapati & Gautam Pradhan & Bhargav Krishna & Hiren T. Jethva & Puja Jawahar, 2023. "What Is Polluting Delhi’s Air? A Review from 1990 to 2022," Sustainability, MDPI, vol. 15(5), pages 1-37, February.
    2. Wang, Zhen & Chu, Erming, 2024. "The path toward urban carbon neutrality: How does the low-carbon city pilot policy stimulate low-carbon technology?," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 954-975.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gill-Wiehl, A. & Ray, I. & Kammen, D., 2021. "Is clean cooking affordable? A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 151(C).
    2. Alison Pye & Sara Ronzi & Bertrand Hugo Mbatchou Ngahane & Elisa Puzzolo & Atongno Humphrey Ashu & Daniel Pope, 2020. "Drivers of the Adoption and Exclusive Use of Clean Fuel for Cooking in Sub-Saharan Africa: Learnings and Policy Considerations from Cameroon," IJERPH, MDPI, vol. 17(16), pages 1-24, August.
    3. Vyas, Sangita & Gupta, Aashish & Khalid, Nazar, 2021. "Gender and LPG use after government intervention in rural north India," World Development, Elsevier, vol. 148(C).
    4. Muhammad Irfan & Michael P. Cameron & Gazi Hassan, 2021. "Can income growth alone increase household consumption of cleaner fuels? Evidence from Pakistan," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2021(2), pages 121-146.
    5. McLean, Elena V. & Bagchi-Sen, Sharmistha & Atkinson, John D. & Ravenscroft, Julia & Hewner, Sharon & Schindel, Alexandra, 2019. "Country-level analysis of household fuel transitions," World Development, Elsevier, vol. 114(C), pages 267-280.
    6. Gupta, Ridhima & Pelli, Martino, 2021. "Electrification and cooking fuel choice in rural India," World Development, Elsevier, vol. 146(C).
    7. Cheng, Chao-yo & Urpelainen, Johannes, 2014. "Fuel stacking in India: Changes in the cooking and lighting mix, 1987–2010," Energy, Elsevier, vol. 76(C), pages 306-317.
    8. Kojo Sarfo Gyamfi & Elena Gaura & James Brusey & Alessandro Bezerra Trindade & Nandor Verba, 2020. "Understanding Household Fuel Choice Behaviour in the Amazonas State, Brazil: Effects of Validation and Feature Selection," Energies, MDPI, vol. 13(15), pages 1-21, July.
    9. Adjei-Mantey, Kwame & Takeuchi, Kenji & Quartey, Peter, 2021. "Impact of LPG promotion program in Ghana: The role of distance to refill," Energy Policy, Elsevier, vol. 158(C).
    10. Anil Shrestha & Makoto Kakinaka, 2022. "Remittance Inflows and Energy Transition of the Residential Sector in Developing Countries," Sustainability, MDPI, vol. 14(17), pages 1-19, August.
    11. Muller, Christophe & Yan, Huijie, 2018. "Household fuel use in developing countries: Review of theory and evidence," Energy Economics, Elsevier, vol. 70(C), pages 429-439.
    12. Zi, Cao & Qian, Meng & Baozhong, Gao, 2021. "The consumption patterns and determining factors of rural household energy: A case study of Henan Province in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 146(C).
    13. Gould, Carlos F. & Urpelainen, Johannes, 2018. "LPG as a clean cooking fuel: Adoption, use, and impact in rural India," Energy Policy, Elsevier, vol. 122(C), pages 395-408.
    14. Gould, Carlos F. & Schlesinger, Samuel B. & Molina, Emilio & Bejarano, M. Lorena & Valarezo, Alfredo & Jack, Darby W., 2020. "Household fuel mixes in peri-urban and rural Ecuador: Explaining the context of LPG, patterns of continued firewood use, and the challenges of induction cooking," Energy Policy, Elsevier, vol. 136(C).
    15. Liu, Pihui & Han, Chuanfeng & Liu, Xinghua & Teng, Minmin, 2023. "Assessing the effect of nonfarm income on the household cooking energy transition in rural China," Energy, Elsevier, vol. 267(C).
    16. Ujjayant Chakravorty & Ridhima Gupta & Martino Pelli, 2022. "The economics of rural energy use in developing countries," CIRANO Working Papers 2022s-12, CIRANO.
    17. Jeuland, Marc & Desai, Manish A. & Bair, Elizabeth F. & Mohideen Abdul Cader, Nafeesa & Natesan, Durairaj & Isaac, Wilson Jayakaran & Sambandam, Sankar & Balakrishnan, Kalpana & Thangavel, Gurusamy & , 2023. "A randomized trial of price subsidies for liquefied petroleum cooking gas among low-income households in rural India," World Development Perspectives, Elsevier, vol. 30(C).
    18. Kapsalyamova, Zhanna & Mishra, Ranjeeta & Kerimray, Aiymgul & Karymshakov, Kamalbek & Azhgaliyeva, Dina, 2021. "Why Is Energy Access Not Enough for Choosing Clean Cooking Fuels? Sustainable Development Goals and Beyond," ADBI Working Papers 1234, Asian Development Bank Institute.
    19. Rahul Ranjan & Sudershan Singh, 2023. "Switching Towards LPG: Indian Household Perspectives," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 21(2), pages 417-435, June.
    20. Edwina Fingleton-Smith, 2022. "Smoke and mirrors—the complexities of cookstove adoption and use in Kenya," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(3), pages 3926-3946, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:164:y:2022:i:c:s0301421522001409. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.