Browsing by Author "Sadath, A.C."

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Access to modern energy services and human development in India: Has government policies paid off?
(Econjournals, 2021) Sadath, A.C.; Rajesh Acharya, R.H.
In this paper we investigate the relationship between access to modern energy services and human development in India over a decade. We estimate an index of human development, multidimensional energy poverty index, and confidence index. Empirical result shows that energy poverty is quite widespread in most of the states in spite of the progress made in reducing the same during the study period. States with higher level of human development are having lower level of energy poverty implying a strong negative correlation between energy poverty and human development. Further, the strength of negative relationship between energy poverty and human development has strengthened during the study period. Among the components of human development, energy poverty has highest impact on GSDP percapita index followed by education index and life expectancy index. The study also finds that confidence index has positive relationship with human development index, whereas negative relationship with energy poverty. © 2021, Econjournals. All rights reserved.
Achievements and challenges of energy poverty alleviation policies: Evidence from the select states in India
(John Wiley and Sons Ltd, 2023) Rajesh Acharya, R.H.; Sadath, A.C.
Indian energy sector has undergone a tremendous transformation with consistent government policy interventions since 2000. Against this backdrop, we examine the extent to which energy poverty has decreased due to the expansion of energy services and the significant determinants of energy poverty in select six states in India. Overall, results reveal that absolute multidimensional energy poverty has substantially decreased across all states examined in the study as well as across all income and social groups between 2015 and 2018. Specifically, acute multidimensional energy poverty has reduced by an average of 30% between 2015 and 2018 in six states. At the same time, dependency on biomass remains more or less the same between 2015 and 2018. Results also show that inequality in the access to energy across income and social groups exists, and education is negatively related to energy poverty. Energy poverty has declined by a similar percentage among most employment groups, except for people practicing cattle rearing. Finally, culture is a significant determinant of energy poverty as households with the elderly and more land owned have higher energy poverty, probably due to the easy access to biomass and preference of such households to use it. © 2022 John Wiley & Sons Ltd.
Assessing the extent and intensity of energy poverty using Multidimensional Energy Poverty Index: Empirical evidence from households in India
(2017) Sadath, A.C.; Acharya, R.H.
In this paper, we have made a comprehensive assessment of the extent and various socio-economic implications of energy poverty in India. Amartya Sens's capability approach to development underpins the analysis of household-level data taken from the India Human Development Survey-II (IHDS-II), 2011-12 using the Multidimensional Energy Poverty Index (MEPI). The overall results show that energy poverty is widespread in India and the existence of energy poverty also coincides with the other forms of deprivations such as income poverty and social backwardness. For example, Dalits (Lower Caste) and Adivasis (Tribal) are found to be extremely energy poor compared to the other social groups in India. The results also reveal that it is the responsibility of women to manage the domestic chores such as collection of firewood and making of dung cake in traditional Indian households. Inefficient use of such biomass fuels is found to cause health hazards. 2017 Elsevier Ltd
Assessing the extent and intensity of energy poverty using Multidimensional Energy Poverty Index: Empirical evidence from households in India
(Elsevier Ltd, 2017) Sadath, A.C.; Rajesh Acharya, R.H.
In this paper, we have made a comprehensive assessment of the extent and various socio-economic implications of energy poverty in India. Amartya Sens's capability approach to development underpins the analysis of household-level data taken from the India Human Development Survey-II (IHDS-II), 2011-12 using the Multidimensional Energy Poverty Index (MEPI). The overall results show that energy poverty is widespread in India and the existence of energy poverty also coincides with the other forms of deprivations such as income poverty and social backwardness. For example, Dalits (Lower Caste) and Adivasis (Tribal) are found to be extremely energy poor compared to the other social groups in India. The results also reveal that it is the responsibility of women to manage the domestic chores such as collection of firewood and making of dung cake in traditional Indian households. Inefficient use of such biomass fuels is found to cause health hazards. © 2017 Elsevier Ltd
Assessing the Relative Importance of Access and Affordability in Energy Poverty in India: A Guide for Future Energy Policies
(Econjournals, 2025) Sadath, A.C.; Rajesh Acharya, R.H.
We analyse the role of access and affordability in measuring energy poverty from a developing country context, particularly India. For this purpose, we use the Harvard Dataverse energy access database household-level data. We measure energy poverty based on subjective indicators such as the Multidimensional Energy Poverty Index (MEPI) and objective measures such as expenditure-based approaches. Empirical results show that India made substantial progress in reducing energy poverty based on all approaches, but we observe vast differences in the extent of energy poverty across different approaches. There is substantial variation in energy poverty among different socioeconomic groups and employment categories, reflecting the reality in the Indian context. Finally, we argue that access, affordability and socioeconomic variables are important determinants of energy poverty in the Indian context. Policymakers should consider these factors while designing policies to handle the problem effectively. © 2025, Econjournals. All rights reserved.
Economic growth and environmental degradation: How to balance the interests of developed and developing countries
(FrancoAngeli nardi@uniroma3.it, 2019) Sadath, A.C.; Rajesh Acharya, R.H.
In this paper we present a pragmatic basis for a multilateral cooperation to deal with climate change problem after accounting for the interests of both developed and developing economies. We develop our argument for such a cooperation based on the principle of affordability of developed countries and accessibility of developing countries. Towards this, we have estimated a panel Autoregressive Distributed Lag (ARDL) model using data pertaining to groups of countries classified based on region and income from 1960 to 2014. Results show that countries with high Gross Domestic Product (GDP) percapita emit more volume of hazardous Greenhouse Gases (GHG) than their developing counterparts and more importantly, the coefficient of elasticity of emission to the growth rate of GDP is substantially lower for highincome countries. Therefore, we argue that developed countries may lead the world in the climate change mitigation efforts through emission reduction and promotion of efficient use of energy resources. © 2020 FrancoAngeli.
Effects of energy price rise on investment: Firm level evidence from Indian manufacturing sector
(2015) Sadath, A.C.; Acharya, R.H.
This paper analyses the effects of the rising prices of energy products on the investment of a large panel of manufacturing firms in India during 1993-2013. The prime motivation behind this study is the absence of an empirical study into this research issue exclusively on Indian economy. The empirical results obtained by estimating an Error Correction Model (ECM) using Generalized Method of Moments (GMM) show that energy price rise has negative effect on the investment of firms in the manufacturing sector. The negative effect is transmitted to the firm's investment through both demand-side and supply-side factors. The transmission also depends upon factors such as the energy intensity of production. The results also show that the sales-growth-investment relationship becomes weak in the face of the rising prices of the energy which could be due to the cautious approach to investment adopted by the firms. Therefore, it calls for the attention of the policy makers to evolve a comprehensive energy-policy to ensure continuous supply of energy at affordable prices to the manufacturers. 2015 Elsevier B.V.
Effects of energy price rise on investment: Firm level evidence from Indian manufacturing sector
(Elsevier, 2015) Sadath, A.C.; Rajesh Acharya, H.R.
This paper analyses the effects of the rising prices of energy products on the investment of a large panel of manufacturing firms in India during 1993-2013. The prime motivation behind this study is the absence of an empirical study into this research issue exclusively on Indian economy. The empirical results obtained by estimating an Error Correction Model (ECM) using Generalized Method of Moments (GMM) show that energy price rise has negative effect on the investment of firms in the manufacturing sector. The negative effect is transmitted to the firm's investment through both demand-side and supply-side factors. The transmission also depends upon factors such as the energy intensity of production. The results also show that the sales-growth-investment relationship becomes weak in the face of the rising prices of the energy which could be due to the cautious approach to investment adopted by the firms. Therefore, it calls for the attention of the policy makers to evolve a comprehensive energy-policy to ensure continuous supply of energy at affordable prices to the manufacturers. © 2015 Elsevier B.V.
Energy poverty and economic development: Household-level evidence from India
(2019) Acharya, R.H.; Sadath, A.C.
In this paper, we investigate the relationship between energy poverty and economic development in India and its trend over a decade. For this purpose, we estimate a Multidimensional Energy Poverty Index (MEPI) and an index of development at the district level using household level data. Empirical results show that energy poverty is quite extensive in India with substantial variations across the states and districts. Over the years, energy poverty shows a declining trend at all-India level, but with the exception of few bigger and less developed states. Further, the study records a negative relationship between economic development and energy poverty, the strength of relationship has increased during the study period. Among the components of economic development, education has a greater impact on reducing energy poverty compared with income. The study observes that energy poverty and socio-economic backwardness in India are highly correlated; Dalits and Adivasis have higher energy poverty and a lower rate in the reduction of energy poverty in comparison with the national average. Energy poverty is lower in urban India in comparison with rural India. 2018
Energy poverty and economic development: Household-level evidence from India
(Elsevier Ltd, 2019) Rajesh Acharya, R.H.; Sadath, A.C.
In this paper, we investigate the relationship between energy poverty and economic development in India and its trend over a decade. For this purpose, we estimate a Multidimensional Energy Poverty Index (MEPI) and an index of development at the district level using household level data. Empirical results show that energy poverty is quite extensive in India with substantial variations across the states and districts. Over the years, energy poverty shows a declining trend at all-India level, but with the exception of few bigger and less developed states. Further, the study records a negative relationship between economic development and energy poverty, the strength of relationship has increased during the study period. Among the components of economic development, education has a greater impact on reducing energy poverty compared with income. The study observes that energy poverty and socio-economic backwardness in India are highly correlated; Dalits and Adivasis have higher energy poverty and a lower rate in the reduction of energy poverty in comparison with the national average. Energy poverty is lower in urban India in comparison with rural India. © 2018
Exploring the Dependency between Energy Access and other Sustainable Development Goals: Global Evidence
(Econjournals, 2024) Sadath, A.C.; Rajesh Acharya, R.H.
This paper examines the interlinkage between energy access and other Sustainable Development Goals (SDGs) in the global context. For this purpose, we have calculated the indices for all 17 SDGs and use correlation and path analysis under structural equation modelling framework. Empirical results confirm that SDG 7 has positive and significant correlation with goal 4 and goal 12 indicating that ensuring access to modern energy resources enables women and girls to spend more time on education and gainful employment than gathering fuel. Further, energy access fosters sustainable production and consumption pattern and also promotes food security and promoting sustainable agriculture. © 2024, Econjournals. All rights reserved.
Implications of energy subsidy reform in India
(2017) Acharya, R.H.; Sadath, A.C.
This paper analyses welfare impact of energy subsidy reform in India based on the data from 1970? 71 to 2014? 15. To this end, Auto Regressive Distributed Lag (ARDL) model and Error Correction Model (ECM) have been estimated to quantify the short-run and long-run price and the income elasticity of various energy products. The results show that the price elasticity of demand for all fossil fuels is low, but the respective income elasticity is higher. Therefore, an increase in the general price level caused by the subsidy reform will lead to the erosion of real income and will have related welfare implications in India. The results also reveal that energy expenditure will obviously increase and hence energy consumption will decline depending upon the extent of the withdrawal of subsidy. Therefore, policy makers in India, while undertaking further reforms, must ensure that the subsidy reaches to those who truly deserve, so that the socioeconomic casualty of reforms can be minimized along with achieving fiscal goals. 2016 Elsevier Ltd
Implications of energy subsidy reform in India
(Elsevier Ltd, 2017) Rajesh Acharya, R.H.; Sadath, A.C.
This paper analyses welfare impact of energy subsidy reform in India based on the data from 1970? 71 to 2014? 15. To this end, Auto Regressive Distributed Lag (ARDL) model and Error Correction Model (ECM) have been estimated to quantify the short-run and long-run price and the income elasticity of various energy products. The results show that the price elasticity of demand for all fossil fuels is low, but the respective income elasticity is higher. Therefore, an increase in the general price level caused by the subsidy reform will lead to the erosion of real income and will have related welfare implications in India. The results also reveal that energy expenditure will obviously increase and hence energy consumption will decline depending upon the extent of the withdrawal of subsidy. Therefore, policy makers in India, while undertaking further reforms, must ensure that the subsidy reaches to those who truly deserve, so that the socioeconomic casualty of reforms can be minimized along with achieving fiscal goals. © 2016 Elsevier Ltd
Multidimensional energy poverty and human well-being: household-level evidence from India
(Emerald Publishing, 2024) Rajesh Acharya, H.; Sadath, A.C.
Purpose: This paper aims to assess the relationship between energy poverty and the well-being of people using Amartya Sen’s capability approach to development as theoretical underpinning. Design/methodology/approach: The study uses household-level energy access data collected by the Harvard Dataverse in 2015 and 2018. The authors use multidimensional indices to measure energy poverty and well-being. Further, the authors apply quantile regression approach to measure the relationship between energy poverty and well-being. Findings: The study’s findings reveal that energy poverty and well-being are negatively related. India has made progress in reducing energy poverty and improving well-being during the study period. However, progress in reducing energy poverty is largely due to improved access to electricity and improvement in well-being due to income and financial inclusion. Using modern cooking fuel has a greater negative impact on well-being compared to lighting using electricity. Further, households spending a greater proportion of their income on modern energy fuels leads to a lower quality of life as it precludes them from using it for other purposes. The study records wide variations in the observed relationship between energy poverty and well-being across various socioeconomic groups. Practical implications: This calls for improvement in the production and distribution of modern energy resources, which have substantial welfare implications. Originality/value: This is the first study to measure the relationship between energy poverty and quality of life using multidimensional indices. The findings of this paper have policy implications for the pricing of energy resources and energy access measures. © 2024, Emerald Publishing Limited.
Revisiting the relationship between oil price and macro economy: Evidence from India
(2018) Acharya, R.H.; Sadath, A.C.
In this paper we revisit the research question of how Indian economy reacted to the changes in the historical oil price. Data on aggregate variables such as real GDP, WPI, interest rate and money supply since 1996 to 2017 are used to estimate Auto-Regressive Distributed Lag (ARDL) model and Structural Vector Auto-Regressive model (SVAR). Empirical results clearly show that oil price is negatively related to real GDP and at the same time, its effect on general inflation is not clear probably due to the massive subsidization of energy resources during the period of study and consequent cushioning of the inflationary effect of oil price shock. Results also show that in the short run, macroeconomic aggregates are mostly influenced by real factors than monetary factors. Result implies that policy makers must create adequate safeguards to ensure that ordinary citizens are not hurt from oil shock as India's reliance on oil import is expected to increase in the future and also promote efficient use of energy resources. 2018 Franco Angeli Edizioni. All rights reserved.
Revisiting the relationship between oil price and macro economy: Evidence from India
(Franco Angeli Edizioni ufficiostampa@francoangeli.it Viale Monza 106 Milan 2012720127, 2018) Rajesh Acharya, R.H.; Sadath, A.C.
In this paper we revisit the research question of how Indian economy reacted to the changes in the historical oil price. Data on aggregate variables such as real GDP, WPI, interest rate and money supply since 1996 to 2017 are used to estimate Auto-Regressive Distributed Lag (ARDL) model and Structural Vector Auto-Regressive model (SVAR). Empirical results clearly show that oil price is negatively related to real GDP and at the same time, its effect on general inflation is not clear probably due to the massive subsidization of energy resources during the period of study and consequent cushioning of the inflationary effect of oil price shock. Results also show that in the short run, macroeconomic aggregates are mostly influenced by real factors than monetary factors. Result implies that policy makers must create adequate safeguards to ensure that ordinary citizens are not hurt from oil shock as India's reliance on oil import is expected to increase in the future and also promote efficient use of energy resources. © 2018 Franco Angeli Edizioni. All rights reserved.
The macroeconomic effects of increase and decrease in oil prices: evidences of asymmetric effects from India
(Emerald Group Holdings Ltd., 2021) Sadath, A.C.; Rajesh Acharya, R.H.
Purpose: The purpose of this paper is to assess whether oil price shocks emanating from oil price increase and decrease have a different impact on the macroeconomic activity. Design/methodology/approach: This study conducts the empirical analysis using structural vector auto-regressive model on Indian data for the period from 1996 to 2017. This paper uses four key macroeconomic variables, namely, real gross domestic product (GDP), the real rate of interest, real money supply, wholesale price index inflation and various linear and non-linear measures of oil price shock. Findings: Empirical results confirm that oil price shock has a significant impact on various macroeconomic variables used in the study. Specifically, shocks emanating from a decline in oil price have a stronger positive impact on real GDP, whereas, a shock due to the rise in oil price has a weaker negative impact on real GDP. Impulse responses confirm that shocks due to a decline in oil prices are long-lasting compared to similar shocks due to a rise in oil prices. Therefore, this study concludes that the macroeconomic impact of oil price shock is asymmetric in India. Originality/value: This paper adds the following new insights: First, this paper presents a distinct relationship between the growth rate of oil price and GDP during increasing and decreasing phases of oil price to drive home the case for this study. Second, India has adopted crucial administrative initiatives such as deregulation of the market for petroleum products and the promotion of renewable energy during the study period. Finally, previous studies have revealed specific behavioral and economic features of people in India with respect to the demand for petroleum products. In light of these factors, this paper based on Indian experience would be justified. © 2021, Emerald Publishing Limited.
Who Bears the Burden of Rising Prices of Petroleum Products Due to Taxes in India?
(Economic and Political Weekly, 2023) Rajesh Acharya, R.H.; Sadath, A.C.
The hike in the prices of petroleum products in India post 2014, primarily due to higher petroleum taxes, is examined. Household consumption expenditure data collected from the India Human Development Survey (2011–12) is analysed using the input–output framework to understand both the direct and indirect effects of rising prices of petroleum products. Results indicate that petroleum taxes are highly regressive, especially at the bottom two consumption expenditure deciles, as raising prices of petroleum products increases the overall cost of living. Results also reveal that households in the middle- and upper-income groups have the similar burden of rising petroleum prices, indicating that tax is not progressive. © 2023 Economic and Political Weekly. All rights reserved.