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Energy Poverty and Human Development: Empirical Evidence from Rural Rajasthan, India

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  • Arun Kumar Giri
  • Rahul Arora

Abstract

This study attempts to establish the linkage between human development and energy poverty for rural households and evaluate the impact of government schemes such as Pradhan Mantri Ujjwala Yojana, free electricity and unemployment allowance on human development. For the analysis purpose, primary data have been collected from rural areas of two main districts of the Shekhawati region of the state of Rajasthan in India. To pursue the objectives, two measures of energy poverty – energy deprivation and the multidimensional energy poverty index – and one measure of human development – the human development index – have been constructed. The primary survey of 1,000 households is conducted from January to March 2020. For establishing the empirical relationship, the study has used Tobit regression analysis. The findings confirm the hypothesis that the existence of energy poverty adversely affects the level of human development in the region. It also confirms the other side of the relationship, which states that increasing human development reduces energy poverty through various linkages. The study results reveal that the government scheme which directly contributes to the per capita income is also impacting positively human development through an increase in income. Hence, to improve the level of human development and to decline energy poverty, the study recommends policies to improve the overall level of income of households. JEL Classification Codes: I32, O13, O15, Q40

Suggested Citation

  • Arun Kumar Giri & Rahul Arora, 2024. "Energy Poverty and Human Development: Empirical Evidence from Rural Rajasthan, India," Millennial Asia, , vol. 15(4), pages 662-689, December.
    • Handle: RePEc:sae:millen:v:15:y:2024:i:4:p:662-689
    DOI: 10.1177/09763996221141519
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    References listed on IDEAS

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    More about this item

    Keywords

    Energy poverty; human development; Rajasthan; Tobit regression; India;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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