Measuring multidimensional energy poverty : the case of India

Abstract

According to the capability approach developed by Sen (1993), access to basic energy services enables capabilities such as good health, education and balanced nourishment, that further increases overall well-being. Deprivation of energy services leads to energy poverty and reduced well-being. There are millions of people without access to clean cooking facilities and electricity in the world today, a majority of them are located in developing countries. It is crucial to tackle these problems, reduce energy poverty and advance sustainable development. In order to do so, good measures of energy poverty are needed to identify the energy poor and develop targeted and relevant policies and solutions. Thus, the aim of the thesis is to measure basic energy deprivations, by using an adapted energy poverty index. Energy poverty is evaluated based on the dimensions of access to clean cooking fuels, access to electricity and access to the most basic energy services. The novelty of the measure is to combine these three dimensions into a composite index using the methodology of the Multidimensional Energy Poverty Index, developed by Nussbaumer, Bazilian & Modi (2011). A multidimensional deprivation score is used to evaluate energy poverty across the three dimensions. The measure is applied to study energy poverty in India. The results indicate that there are great differences in the level of access that the various Indian states have to certain basic energy services. The extent of deprivation is greatest in the dimension of access to clean cooking facilities. Rural and lower income groups tend to have more energy poverty than urban groups and higher income groups, respectively. Thus, these are certain groups that policymakers should prioritize. Continued analysis of energy poverty in India and other regions is useful for making spatial and temporal comparisons to monitor progress and provide recommendations for reducing energy poverty.