Income and Modern Energy Use in Rural Households of Mexico in the Context of the Sustainable Development Goal 7

The United Nations’ Sustainable Development Goal 7 (SDG7) consists in ensuring access to affordable, reliable, sustainable and modern energy for all. Before Mexico can achieve this goal, a deeper insight into the prevailing status of rural households’ energy access needs to be identified. The primary purpose of this study is to evaluate how does the consumption for different energy carriers vary with income in Mexican rural households. Using household survey data an approach to the income elasticities of different energy carriers (electricity, liquefied petroleum gas (LPG), natural gas, coal, and firewood) is computed. The preliminary results suggest that all variables reported the expected sign except for firewood. When the income of Mexican rural households increases by 1%, their consumption of electricity, LPG, natural gas, and firewood, increases by 0.35%, 0.24%, 0.44%, and 0.12%, respectively. Additionally, when the income varies by 1%, the coal consumption decreases by 0.09%.

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JEL Codes:
O13; 012; Q01

 Record created 2017-04-01, last modified 2018-01-23

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