Determinants of Energy Poverty in Assam : An Econometric Analysis
Keywords:
energy poverty, energy poverty index, logistic transformation model.JEL Classification Codes :C25, I32, Q4
Publication Chronology: Paper Submission Date : September 5, 2025 ; Paper sent back for Revision : January 22, 2026 ; Paper Acceptance Date : February 10, 2026
Abstract
Purpose : The paper tried to look into the inter-district variations in the level of energy poverty in Assam and to explore its determinants.
Methodology : The study was based on secondary data provided by district-level fact sheets of the National Family Health Survey-5 (NFHS-5). The status of district-level energy poverty was analyzed through the lens of a composite energy poverty index (EPI). The logistic transformation model is used for exploring the factors affecting energy poverty from an econometric point of view.
Findings : The study found a low level of variation in the level of energy poverty across the districts of Assam. Cooking fuel poverty was found to be significantly more prominent in relation to lighting fuel poverty. Empirical results revealed that energy poverty was positively and significantly affected by income poverty, while it was negatively and significantly influenced by human development, urbanization, and workforce participation rate (WPR).
Practical Implications : Income poverty needs to be cut short with a view to reducing energy poverty in Assam. This is because with a high level of income poverty, satisfaction of the basic needs usually becomes the top-most priority of the impoverished at the cost of energy or any other needs. At this juncture, they preferred to stay energy poor by switching down to the use of dirty and inefficient energy fuels and reallocate the minimum available economic resources for the satisfaction of critical primary needs. The state and the concerned organizations must also aim at accelerating the pace of human development as it could seriously damage the extent of energy poverty. The policy implication of a negative and significant WPR was that the opportunity cost of time became high for the masses, and this induced households to shift toward the use of modern fuels. Urbanization has led to a significant reduction of energy poverty by raising more earning opportunities and cutting short the sources of dirty and unhealthy energy fuel.
Originality : To the best of our knowledge, the present study is the first novel attempt to assess the status of energy poverty and identify its correlates in Assam by making use of secondary data.
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