Energy Transition, Poverty and Inequality: Panel Evidence from Vietnam

46 Pages Posted: 20 Jun 2019

Date Written: June 14, 2019

Abstract

This paper investigates energy transition, energy poverty and energy inequality in Vietnam employing a longitudinal dataset of a nationally representative household survey. We use the data on residential energy expenditure of more than 9,000 households over the period 2004 - 2016. We find a transition from traditional energy to modern energy but this transition varies across regions, between ethnic and welfare groups and between rural and urban population. The poor and ethnic minority households still rely heavily on traditional energy sources such as coal and biomass to meet their energy demands. Electricity poverty has decreased but energy-cost poverty has increased. In addition, energy inequality tends to decrease at a more significant rate than income and consumption inequalities. We propose a national program for energy poverty alleviation be established to devise policies to lower households’ energy costs. Further assistance to the poor and ethnic minority households is also recommended so that they can afford a higher level of electricity consumption.

Keywords: household energy consumption expenditure; Gini coefficient; Lorenz curve; seemingly (un)related regression; probit regression

Suggested Citation

Nguyen, Trung Thanh, Energy Transition, Poverty and Inequality: Panel Evidence from Vietnam (June 14, 2019). Available at SSRN: https://ssrn.com/abstract=3404019 or http://dx.doi.org/10.2139/ssrn.3404019

Trung Thanh Nguyen (Contact Author)

Leibniz Universität Hannover ( email )

Welfengarten 1
D-30167 Hannover, 30167
Germany

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