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Inequality in electricity consumption and economic growth: Evidence from a small area estimation study
Cuong Viet Nguyen1,2,3, Khuong Duc Nguyen3,4, Tuyen Quang Tran1
1Faculty of Economics and Management, International School, Vietnam National University, Hanoi, Vietnam.
Abstract:
Our study uses a small area estimation method to estimate the average and inequality of per capita kWh consumption for small areas in Vietnam. It shows evidence of a large spatial heterogeneity in the electric power consumption between districts and provinces in Vietnam. Households in the mountains and highlands consumed remarkably less electricity than those in the delta and coastal areas. Notably, we find a U-shaped relationship between the inequality of electricity consumption and economic levels in Vietnam. In poor districts and provinces, there is very high inequality in electricity consumption. Inequality is lower in middle-income districts and provinces.
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