Energy, Economy, and Sustainability at Household Level in Pakistan /

Abstract

The correlation between energy and development, particularly the positive linkage between access to electricity and the quality of life is well supported by the relevant research. Despite lack of consensus on the existence and direction of causality between energy consumption and economic development, most studies exhibit strong correlation between the two. The indicators measuring socioeconomic well-being such as the human development index (HDI) and multi-dimensional poverty index (MPI) also recognize energy as an important resource for human development. Further, recognizing the importance and vital contribution of energy in socioeconomic well-being, it is included as 7th Sustainable Development Goal (SDG-7) in 2030 Agenda for Sustainable Development. The research on interplay between SDG-7 – the energy – and other SDGs offers substantial evidence of SDG-7’s direct effect and/or dependence upon achievement of several SDGs and indirect relationship with the remaining ones.

In the above context, this doctoral dissertation attempts to correlate the socioeconomic conditions with the energy access in Pakistani households. It examines whether the state of household energy in Pakistan can predict the earning abilities and how it may validate the correlation between energy and other socioeconomic markers. This is followed by an evaluation of rooftop solar systems’ (RTS) contribution in meeting the households’ energy needs and identification of few measures that can accelerate RTS adoption in Pakistan. Thus, this thesis brings to fore two dimensions of household energy utilization and adoption in Pakistan: first it shows the robust correlation between the type (and quality) of energy and the socioeconomic well-being of citizens at household level and, second it identifies a critical factor – lack of awareness – inhibiting the adoption of rooftop solar photovoltaics (PV) systems. Though not aimed at establishing a causal relationship, this research provides strong evidence about household energy being an important indicator in measuring a society’s economic well-being, leading to the inference that improving the type and the quality of household energy – both for cooking and for lighting – can greatly influence the quality of life. It is empirically demonstrated that energy is an important contributor in human welfare and merits consideration as a factor in calculating the Human Development Index (HDI). With better understanding of energy’s role in socioeconomic well-being, this thesis then offers evidence on how psycho-social factors like perception, behaviour and attitude affect the acceptance and adoption of clean-energy sources like solar PV systems.

The data analyzed and presented to address the former dimension is obtained from 2017 Population Survey, Pakistan Bureau of Statistics, Pakistan. Data from this survey disaggregated to district level encompassing all communities across the width and breadth of the country was used for the regression analysis. Using empirical results of this analysis, a robust correlation is established between the energy type Pakistani households have access to, their living standards and per capita income. This outcome offers insights into the household energy’s significance and correlation with the income (or poverty). For the latter part, inquiry into the impact of citizen’s behaviour based on their level of awareness about household solar energy adoption is based on the data collected by the Institute of Policy Studies (IPS), Pakistan. Statistical results of this inquiry reveal the effects of intangible factors like awareness on the people’s willingness to participate in rooftop solar (RTS) energy adoption.

Presenting the groundwork for policy review as well as for future research, this dissertation lays down the foundation for hitherto unexamined policy options to create synergy between poverty alleviation planning and universal energy access in Pakistan. Increased share of renewable energy sources in the energy mix through households’ RTS adoption is expected to create better economic prospects for the society through improved energy equity and enhanced energy security for the country through reduced dependence on the energy imports.