Working Papers

Measurement of energy poverty has been a missing priority in energy research. Consensus is absent regarding whether to consider energy as a resource or capacity, output or outcome, and quantity or service. In this paper we outline the three approaches in literature to assess energy poverty: economic, engineering, and access-based. We critique the economic and engineering approaches for the arbitrariness of cut-offs and the misplaced emphasis on energy quantity that is less meaningful. We find the access-based approach most suitable to the conventional notion of poverty. We propose a method of assessing energy poverty based on deprivation in modern cooking and lighting fuels. We divide the energy-poor into three groups: transitional, moderate, and extreme energy-poor. We apply the method to urban areas of different states and union territories of India using the national sample survey data. The results reveal a greater incidence of poverty in larger states. Also, energy poverty is primarily dictated by deprivation in cooking. In contrast to conventional measures, we compute the depth and severity of energy poverty only for those who are energy-poor instead of the entire population. These measures show that while certain states have a lower energy-poor population compared to others their poor have a higher level of energy poverty.