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Household-level Analysis of Electricity Consumption on Welfare and Environment in Cambodia: Empirical Evidence and Policy Implications

Household-level Analysis of Electricity Consumption on Welfare and Environment in Cambodia: Empirical Evidence and Policy Implications
Date:
26 November 2019
Authors:
Han Phoumin, Fukunari Kimura, Suwin Sandu
Tags:
Electricity, electricity consumption, welfare, environment

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About the Journal

Economic Modelling, December 2019, available online 26 November 2019 through https://doi.org/10.1016/j.econmod.2019.11.025

Authors

  • Han Phoumin, Economic Research Institute for ASEAN and East Asia, Jakarta, Indonesia
  • Fukunari Kimura, Economic Research Institute for ASEAN and East Asia, Tokyo, Japan
  • Suwin Sandu, University of Technology, Sydney, Australia

Highlights

  • Household’s access to electricity with ability to spend on electricity consumption contributes to the positive household welfare effects.
  • The more household spends on biomass, the more they are prone to sickness of lung problem.
  • The study confirmed the important role of human capital formation for the positive impact on the welfare and the environment.

Abstract

Cambodia’s biomass consumption is the most dominant energy source at residential sector, and its use is mainly for cooking and heating which could affect health due to indoor air pollution. The biomass is mainly sourced from wood cutting and forest-encroachment that could impact the environment due to reduction of forest at considerable scale. By using the data 2015 of Cambodia Socio-Economic Survey, the study investigates the impacts of electricity consumption on household welfare, such as earnings and the school performance of children in the households, and further to investigate its impacts on the environment. The study found that household’s access to electricity with ability to spend on electricity consumption contributes to the positive household welfare effects and environment via a reduction of biomass consumption, and the more household spends on biomass, the more they are prone to sickness of lung problem. The study also confirmed the important role of human capital formation for the positive impact on the welfare and the environment. These findings lead to policy implications that would improve affordable access to electricity to ensure that all households can use electricity for their basic needs and productivity, and also to reduce the negative effects on environment.

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