Abstract:
Low-carbon energy transition, which includes the replacement of fossil fuels with low-carbon energy infrastructure, the removal of subsidies, and other measures, requires households to be able to pay for low-carbon energy services. Economic shocks such as the coronavirus disease pandemic and high inflation make paying for energy challenging for households. We use the Kyrgyz Integrated Household Survey data (2019-2021) to study the impact of income decline on energy consumption. We provide the following key results. First, the empirical results show that the effects of income decline on household energy consumption vary (positive or negative) according to income group. Second, the low-income group with income decline reduced energy consumption, while the higher income group (second quartile) increased energy consumption.