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<p>The paper aims to analyse the nature and determinants of energy transition in Indian households, using various consumer response parameters and welfare changes. It estimates the price and income elasticities of energy as a consumption category and of six fuels - electricity, LPG, kerosene, firewood and chips, other traditional fuels, and a residual group of fuels - using Linear Approximation of Almost Ideal Demand Systems (LA-AIDS) and Quadratic AIDS (LA-QUAIDS). The study is based on relevant data from the 68th round of the National Sample Survey Organisation of India for a sample of ~ 100,000 households. Results suggest that the elasticity estimates obtained from these two models are comparable as long as the energy commodity is not inferior, such as kerosene. Results suggest that LPG is more price-sensitive than electricity, while kerosene appears to be an inferior good, especially in certain urban quarters. Demand for LPG is also responsive to income. The demand for firewood and chips is susceptible to changes in its own price and income. However, it may not accurately reflect the nature of market demand since a large portion of firewood and chips is non-marketed.</p>

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Analyzing the Pattern of Household Energy Demand in India: An Application of LA-AIDS and LA-QUAIDS

  • 期刊论文

  • 发表日期：

    2025年11月19日

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  • Pooja Sankhyayn,
  • Utkarsh Anand,
  • Shyamasree Dasgupta

摘要

The paper aims to analyse the nature and determinants of energy transition in Indian households, using various consumer response parameters and welfare changes. It estimates the price and income elasticities of energy as a consumption category and of six fuels - electricity, LPG, kerosene, firewood and chips, other traditional fuels, and a residual group of fuels - using Linear Approximation of Almost Ideal Demand Systems (LA-AIDS) and Quadratic AIDS (LA-QUAIDS). The study is based on relevant data from the 68th round of the National Sample Survey Organisation of India for a sample of ~ 100,000 households. Results suggest that the elasticity estimates obtained from these two models are comparable as long as the energy commodity is not inferior, such as kerosene. Results suggest that LPG is more price-sensitive than electricity, while kerosene appears to be an inferior good, especially in certain urban quarters. Demand for LPG is also responsive to income. The demand for firewood and chips is susceptible to changes in its own price and income. However, it may not accurately reflect the nature of market demand since a large portion of firewood and chips is non-marketed.