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Is electricity affordable and reliable for all in Vietnam?

Author

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  • Minh Ha-Duong

    (CIRED - centre international de recherche sur l'environnement et le développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

  • Hoai-Son Nguyen

    (CleanED - Clean Energy and Sustainable Development Lab - USTH - University of Science and Technology of Hanoi, CIRED - centre international de recherche sur l'environnement et le développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

Abstract

This study shows that in Vietnam, the problem of providing access to clean energy for all is largely solved for now: the fraction of households without access to electricity is below two percent, the median level of electricity usage in 2014 was 100 kWh per month per household, and the fraction of households declaring unsatisfied electricity needs is below three percent. However, we also find that electricity is becoming a heavier burden in Vietnamese households' finances, and this affordability problem will increase if electricity prices are raised to finance the clean development of the energy system. We show making the retail tariff of electricity more progressive could increase the collected revenue by 15% and at the same time provides free access to 30 kWh basic need per household.

Suggested Citation

  • Minh Ha-Duong & Hoai-Son Nguyen, 2017. "Is electricity affordable and reliable for all in Vietnam?," Post-Print hal-01572126, HAL.
    • Handle: RePEc:hal:journl:hal-01572126
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    References listed on IDEAS

    as
    1. He, Xiaoping & Reiner, David, 2016. "Electricity demand and basic needs: Empirical evidence from China's households," Energy Policy, Elsevier, vol. 90(C), pages 212-221.
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    Cited by:

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    2. Giuseppina Siciliano & Linda Wallbott & Frauke Urban & Anh Nguyen Dang & Markus Lederer, 2021. "Low‐carbon energy, sustainable development, and justice: Towards a just energy transition for the society and the environment," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(6), pages 1049-1061, November.
    3. Medeiros, Victor & Ribeiro, Rafael Saulo Marques, 2020. "Power infrastructure and income inequality: Evidence from Brazilian state-level data using dynamic panel data models," Energy Policy, Elsevier, vol. 146(C).
    4. Elliott, Robert J.R. & Nguyen-Tien, Viet & Strobl, Eric A., 2021. "Power outages and firm performance: A hydro-IV approach for a single electricity grid," Energy Economics, Elsevier, vol. 103(C).
    5. Feeny, Simon & Trinh, Trong-Anh & Zhu, Anna, 2021. "Temperature shocks and energy poverty: Findings from Vietnam," Energy Economics, Elsevier, vol. 99(C).
    6. Lam Do, Truong Phuong, 2021. "Retail Electricity Subsidy in Vietnam : Review and Welfare Effect Under Reform," Warwick-Monash Economics Student Papers 31, Warwick Monash Economics Student Papers.
    7. Manh-Hung Nguyen, 2021. "A Resilient Energy System to Climate change," Post-Print hal-04044554, HAL.
    8. Bakkensen, Laura & Schuler, Paul, 2020. "A preference for power: Willingness to pay for energy reliability versus fuel type in Vietnam," Energy Policy, Elsevier, vol. 144(C).

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