Asymmetry in the inequality of opportunity in energy consumption across gender, caste, and religion in India

Abstract

Inequality in income and consumption expenditure is intricately linked to discrimination based on gender, caste, and religion in India. Using large-scale administrative survey data – the Consumer Pyramids Household Surveys (CPHS), we provide empirical evidence on Roemer's paradigm of equality of opportunity in energy consumption and its components: fuel and electricity consumption. We investigate the contributions of circumstance factors – gender, caste, and religion – in generating inequality of opportunity (IOP) in energy consumption and its components at the state level. We find evidence of high IOP in total energy consumption and moderate levels of IOP in fuel and electricity consumption. Our findings show that gender accounts for a substantial share of IOP in energy consumption and its components in southern regions, whereas caste and religion are the key drivers of such inequalities in the north and northeast states. Relative IOP estimates are high in northern states, but lower in the southern and northeast states. We draw several policy implications, highlighting the need for tailored policy initiatives designed and implemented at the state level to enhance energy accessibility and affordability to women-led households, backward castes, and minorities. We contend that the use of such indices cannot only inform the policymakers of the current state of IOP, but one can construct such indices to measure the progress toward ensuring equality of opportunity in energy consumption across demographic groups.