Modelling Household Energy Access in India

Ekholm, T. (2009). Modelling Household Energy Access in India. IIASA Interim Report. IIASA, Laxenburg, Austria: IR-09-007

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Abstract

Improving access to affordable modern energy is deemed to be a critical factor in improving living standards in the developing world. Particularly rural households in India are relying mostly on traditional biomass to satisfy their basic energy needs with adverse effects on human health through indoor air pollution, but also on land degradation and labor productivity. This study presents a new generic modeling approach with the aim to explore response strategies for energy poverty eradication for India. The modeling approach explores characteristics of fuel consumption of the poorest through explicit representation of the main determinants of urban and rural energy fuel choice, including the effect of income distributions and capital scarcity on energy use as well as traditionally more intangible factors such as "inconvenience costs" or private discount rates. The methodology is applied to explore how different policy mechanisms such as fuel subsidies and microfinancing can enhance the diffusion of clean and affordable energy in India. This draft summarizes preliminary initial results focusing on the attainable transition to clean and modern fuels. As a next step, a sensitivity analysis for the main uncertain parameters and an assessment of the number of households and their exposure is planned. Implications for life-expectancy will be assessed through collaboration with APD.

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