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Assessing the Impact of Income Decline on Household Clean Fuel Choice: Evidence from the Kyrgyz Republic

Author

Listed:
  • Karymshakov , Kamalbek

    (Kyrgyz-Turkish Manas University)

  • Azhgaliyeva , Dina

    (Asian Development Bank)

Abstract

Low-carbon energy transition, which includes the replacement of fossil fuels with low-carbon energy infrastructure, the removal of subsidies, and other measures, requires households to be able to pay for low-carbon energy services. Economic shocks such as the coronavirus disease pandemic and high inflation make paying for energy challenging for households. We use the Kyrgyz Integrated Household Survey data (2019–2021) to study the impact of income decline on energy consumption. We provide the following key results. First, the empirical results show that the effects of income decline on household energy consumption vary (positive or negative) according to income group. Second, the low-income group with income decline reduced energy consumption, while the higher income group (second quartile) increased energy consumption.

Suggested Citation

  • Karymshakov , Kamalbek & Azhgaliyeva , Dina, 2025. "Assessing the Impact of Income Decline on Household Clean Fuel Choice: Evidence from the Kyrgyz Republic," ADB Economics Working Paper Series 773, Asian Development Bank.
  • Handle: RePEc:ris:adbewp:0773
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    More about this item

    Keywords

    household energy consumption; coal consumption; fossil fuel consumption; income decline; Central Asia; energy transition;
    All these keywords.

    JEL classification:

    • Q31 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Demand and Supply; Prices
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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