Expenditure of Low-Income Households on Energy : Evidence from Africa and Asia

Patterns of household energy use and expenditure have been the subject of a large number of studies. Household expenditures on energy-particularly, how much the poor spend-have policy implications for several reasons. First, policies to mitigate or...

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Main Authors: Bacon, Robert, Bhattacharya, Soma, Kojima, Masami
Format: Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2014
Subjects:
AIR
CAR
GAS
LNG
OIL
Online Access:http://documents.worldbank.org/curated/en/2010/06/12390075/expenditure-low-income-households-energy-evidence-africa-asia
http://hdl.handle.net/10986/18284
id okr-10986-18284
recordtype oai_dc
spelling okr-10986-182842021-04-23T14:03:34Z Expenditure of Low-Income Households on Energy : Evidence from Africa and Asia Bacon, Robert Bhattacharya, Soma Kojima, Masami ACCESS TO ELECTRICITY ADVERSE EFFECTS AIR AIR POLLUTION APPROACH AUTOMOTIVE FUEL AUTOMOTIVE SECTOR AVAILABILITY AVERAGE PRICE AVERAGE PRICES BATTERIES BIOMASS BIOMASS FUELS BIOMASS USE CAR CAR BATTERIES CLEAN ENERGY CLEANER FUELS COAL COMBUSTION COMMERCIAL ENERGY CONGESTION COST OF TRANSPORT COSTS OF TRANSPORTATION CRUDE OIL DEFORESTATION DIESEL DIESEL FUEL DISPOSABLE INCOME DISTRIBUTION SYSTEM DOMESTIC PETROLEUM DURABLE GOOD ECONOMIES OF SCALE ELECTRIC APPLIANCES ELECTRICITY ELECTRICITY PRICE ELECTRICITY SUPPLY ENERGY CONSUMPTION ENERGY EXPENDITURE ENERGY EXPENDITURES ENERGY PRICE ENERGY PRICES ENERGY PRICING ENERGY PRODUCTS ENERGY SOURCE ENERGY SOURCES ENERGY USE ENFORCEMENT OF REGULATIONS FIXED CHARGE FOSSIL FOSSIL FUEL FOSSIL FUEL COMBUSTION FOSSIL FUELS FUEL FUEL PRICE FUEL PRICES FUEL SUBSIDIES FUEL SWITCHING FUEL USE FUELS GAS GAS PRICES GASOLINE GRID ELECTRICITY HIGHER ENERGY PRICES HOUSEHOLD BUDGETS HOUSEHOLD EXPENDITURES HOUSEHOLD FUEL HYDROPOWER KEROSENE LIQUID FUELS LIVING STANDARDS LNG MARKET VALUE NATURAL GAS OIL OIL PRICE OIL PRICES PASSENGER TRANSPORT PER CAPITA INCOME PETROLEUM PETROLEUM GAS PETROLEUM PRICES PETROLEUM PRODUCTS POWER POWER GENERATION PRICE CHANGES PRICE INCREASES PRICE OF DIESEL PRICE OF OIL PRICE SUBSIDIES PRICE SUBSIDY PRICE VARIATION PRICING POLICIES PRICING SCHEME PUBLIC TRANSPORT PURCHASING RETAIL RETAIL PRICES ROAD ROAD INFRASTRUCTURE RURAL ENERGY SOLID FUELS SOURCE OF ENERGY SUBSTITUTE SUBSTITUTES SUBSTITUTION SUPPLIERS TRADITIONAL BIOMASS TRANSPORT TRANSPORT COSTS TRANSPORTATION TRANSPORTATION COSTS TRANSPORTATION FUEL TRANSPORTATION FUELS TRUE WEALTH WORLD MARKET WORLD OIL Patterns of household energy use and expenditure have been the subject of a large number of studies. Household expenditures on energy-particularly, how much the poor spend-have policy implications for several reasons. First, policies to mitigate or cope with energy price shocks are increasingly focusing on targeted support to low-income households as a way of limiting the fiscal cost of such policies while offering protection to the most vulnerable members of society. Second, for governments looking to reform energy price subsidies, the effects on household welfare- especially effects on poor households-of price increases resulting from subsidy reduction/removal is an important policy consideration. But subsidies for liquid fuels targeting the poor are difficult to design and implement effectively, because liquid fuels tend to be used more by the rich than by the poor, and are also easy to transport (and hence to divert to non-poor users). For this reason, there is a growing recognition of the need to move away from price subsidies for liquid fuels to alternative forms of targeted assistance to compensate the poor for the adverse effects of higher fuel prices. Third, in areas where many households have not yet begun using modern commercial energy regularly, the amount they can afford to pay for such energy services is a relevant question. Quantifying expenditures on different types of energy at varying income levels provides a basis for addressing these questions. The paper also examines expenditures on motorized passenger transport and food, two items for which the price of oil is an important component of their cost structure and which are consequential in the budget of poor households. 2014-05-13T20:42:49Z 2014-05-13T20:42:49Z 2010-06 http://documents.worldbank.org/curated/en/2010/06/12390075/expenditure-low-income-households-energy-evidence-africa-asia http://hdl.handle.net/10986/18284 English en_US Extractive industries and development series;no. 16 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Working Paper Publications & Research
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ACCESS TO ELECTRICITY
ADVERSE EFFECTS
AIR
AIR POLLUTION
APPROACH
AUTOMOTIVE FUEL
AUTOMOTIVE SECTOR
AVAILABILITY
AVERAGE PRICE
AVERAGE PRICES
BATTERIES
BIOMASS
BIOMASS FUELS
BIOMASS USE
CAR
CAR BATTERIES
CLEAN ENERGY
CLEANER FUELS
COAL
COMBUSTION
COMMERCIAL ENERGY
CONGESTION
COST OF TRANSPORT
COSTS OF TRANSPORTATION
CRUDE OIL
DEFORESTATION
DIESEL
DIESEL FUEL
DISPOSABLE INCOME
DISTRIBUTION SYSTEM
DOMESTIC PETROLEUM
DURABLE GOOD
ECONOMIES OF SCALE
ELECTRIC APPLIANCES
ELECTRICITY
ELECTRICITY PRICE
ELECTRICITY SUPPLY
ENERGY CONSUMPTION
ENERGY EXPENDITURE
ENERGY EXPENDITURES
ENERGY PRICE
ENERGY PRICES
ENERGY PRICING
ENERGY PRODUCTS
ENERGY SOURCE
ENERGY SOURCES
ENERGY USE
ENFORCEMENT OF REGULATIONS
FIXED CHARGE
FOSSIL
FOSSIL FUEL
FOSSIL FUEL COMBUSTION
FOSSIL FUELS
FUEL
FUEL PRICE
FUEL PRICES
FUEL SUBSIDIES
FUEL SWITCHING
FUEL USE
FUELS
GAS
GAS PRICES
GASOLINE
GRID ELECTRICITY
HIGHER ENERGY PRICES
HOUSEHOLD BUDGETS
HOUSEHOLD EXPENDITURES
HOUSEHOLD FUEL
HYDROPOWER
KEROSENE
LIQUID FUELS
LIVING STANDARDS
LNG
MARKET VALUE
NATURAL GAS
OIL
OIL PRICE
OIL PRICES
PASSENGER TRANSPORT
PER CAPITA INCOME
PETROLEUM
PETROLEUM GAS
PETROLEUM PRICES
PETROLEUM PRODUCTS
POWER
POWER GENERATION
PRICE CHANGES
PRICE INCREASES
PRICE OF DIESEL
PRICE OF OIL
PRICE SUBSIDIES
PRICE SUBSIDY
PRICE VARIATION
PRICING POLICIES
PRICING SCHEME
PUBLIC TRANSPORT
PURCHASING
RETAIL
RETAIL PRICES
ROAD
ROAD INFRASTRUCTURE
RURAL ENERGY
SOLID FUELS
SOURCE OF ENERGY
SUBSTITUTE
SUBSTITUTES
SUBSTITUTION
SUPPLIERS
TRADITIONAL BIOMASS
TRANSPORT
TRANSPORT COSTS
TRANSPORTATION
TRANSPORTATION COSTS
TRANSPORTATION FUEL
TRANSPORTATION FUELS
TRUE
WEALTH
WORLD MARKET
WORLD OIL
spellingShingle ACCESS TO ELECTRICITY
ADVERSE EFFECTS
AIR
AIR POLLUTION
APPROACH
AUTOMOTIVE FUEL
AUTOMOTIVE SECTOR
AVAILABILITY
AVERAGE PRICE
AVERAGE PRICES
BATTERIES
BIOMASS
BIOMASS FUELS
BIOMASS USE
CAR
CAR BATTERIES
CLEAN ENERGY
CLEANER FUELS
COAL
COMBUSTION
COMMERCIAL ENERGY
CONGESTION
COST OF TRANSPORT
COSTS OF TRANSPORTATION
CRUDE OIL
DEFORESTATION
DIESEL
DIESEL FUEL
DISPOSABLE INCOME
DISTRIBUTION SYSTEM
DOMESTIC PETROLEUM
DURABLE GOOD
ECONOMIES OF SCALE
ELECTRIC APPLIANCES
ELECTRICITY
ELECTRICITY PRICE
ELECTRICITY SUPPLY
ENERGY CONSUMPTION
ENERGY EXPENDITURE
ENERGY EXPENDITURES
ENERGY PRICE
ENERGY PRICES
ENERGY PRICING
ENERGY PRODUCTS
ENERGY SOURCE
ENERGY SOURCES
ENERGY USE
ENFORCEMENT OF REGULATIONS
FIXED CHARGE
FOSSIL
FOSSIL FUEL
FOSSIL FUEL COMBUSTION
FOSSIL FUELS
FUEL
FUEL PRICE
FUEL PRICES
FUEL SUBSIDIES
FUEL SWITCHING
FUEL USE
FUELS
GAS
GAS PRICES
GASOLINE
GRID ELECTRICITY
HIGHER ENERGY PRICES
HOUSEHOLD BUDGETS
HOUSEHOLD EXPENDITURES
HOUSEHOLD FUEL
HYDROPOWER
KEROSENE
LIQUID FUELS
LIVING STANDARDS
LNG
MARKET VALUE
NATURAL GAS
OIL
OIL PRICE
OIL PRICES
PASSENGER TRANSPORT
PER CAPITA INCOME
PETROLEUM
PETROLEUM GAS
PETROLEUM PRICES
PETROLEUM PRODUCTS
POWER
POWER GENERATION
PRICE CHANGES
PRICE INCREASES
PRICE OF DIESEL
PRICE OF OIL
PRICE SUBSIDIES
PRICE SUBSIDY
PRICE VARIATION
PRICING POLICIES
PRICING SCHEME
PUBLIC TRANSPORT
PURCHASING
RETAIL
RETAIL PRICES
ROAD
ROAD INFRASTRUCTURE
RURAL ENERGY
SOLID FUELS
SOURCE OF ENERGY
SUBSTITUTE
SUBSTITUTES
SUBSTITUTION
SUPPLIERS
TRADITIONAL BIOMASS
TRANSPORT
TRANSPORT COSTS
TRANSPORTATION
TRANSPORTATION COSTS
TRANSPORTATION FUEL
TRANSPORTATION FUELS
TRUE
WEALTH
WORLD MARKET
WORLD OIL
Bacon, Robert
Bhattacharya, Soma
Kojima, Masami
Expenditure of Low-Income Households on Energy : Evidence from Africa and Asia
relation Extractive industries and development series;no. 16
description Patterns of household energy use and expenditure have been the subject of a large number of studies. Household expenditures on energy-particularly, how much the poor spend-have policy implications for several reasons. First, policies to mitigate or cope with energy price shocks are increasingly focusing on targeted support to low-income households as a way of limiting the fiscal cost of such policies while offering protection to the most vulnerable members of society. Second, for governments looking to reform energy price subsidies, the effects on household welfare- especially effects on poor households-of price increases resulting from subsidy reduction/removal is an important policy consideration. But subsidies for liquid fuels targeting the poor are difficult to design and implement effectively, because liquid fuels tend to be used more by the rich than by the poor, and are also easy to transport (and hence to divert to non-poor users). For this reason, there is a growing recognition of the need to move away from price subsidies for liquid fuels to alternative forms of targeted assistance to compensate the poor for the adverse effects of higher fuel prices. Third, in areas where many households have not yet begun using modern commercial energy regularly, the amount they can afford to pay for such energy services is a relevant question. Quantifying expenditures on different types of energy at varying income levels provides a basis for addressing these questions. The paper also examines expenditures on motorized passenger transport and food, two items for which the price of oil is an important component of their cost structure and which are consequential in the budget of poor households.
format Publications & Research :: Working Paper
author Bacon, Robert
Bhattacharya, Soma
Kojima, Masami
author_facet Bacon, Robert
Bhattacharya, Soma
Kojima, Masami
author_sort Bacon, Robert
title Expenditure of Low-Income Households on Energy : Evidence from Africa and Asia
title_short Expenditure of Low-Income Households on Energy : Evidence from Africa and Asia
title_full Expenditure of Low-Income Households on Energy : Evidence from Africa and Asia
title_fullStr Expenditure of Low-Income Households on Energy : Evidence from Africa and Asia
title_full_unstemmed Expenditure of Low-Income Households on Energy : Evidence from Africa and Asia
title_sort expenditure of low-income households on energy : evidence from africa and asia
publisher World Bank, Washington, DC
publishDate 2014
url http://documents.worldbank.org/curated/en/2010/06/12390075/expenditure-low-income-households-energy-evidence-africa-asia
http://hdl.handle.net/10986/18284
_version_ 1764435754116710400