The Study On Dynamic Reflections Of Multidimensional Energy Poverty In Pakistan

In the context of least,developed economies importance of energy can never be ignored,because since past few decades most of these countries are facing severe energy crises,that lead to generating several social,and economic issues.Among all these countries,Pakistan is one of them,that also faced severe energy crises in the past few years.A series of factors are responsible for current dilemmas like political instability,poor energy generation and saving policy,lack of energy generation sources,provinces conflict on the matter of dam building.To highlight the particular issue in a broader way and explore how households are suffering from energy crises in Pakistan current study has made elite effort to explore the situation of uni-dimensional and multidimensional energy poverty in Pakistan,its provinces,divisions and urban and rural regions.By utilizing well-reputed HIES/PSLM data sets from 2010-11 to 2013-14.The study consists of four distinct sections that not only explore the extent of the problem but also check what the factors are responsible for varying(declining)energy poverty in Pakistan.However,energy poverty in multidimensional spectrum playing the role to effect GDP per capita in Pakistan.In the initial section,uni-dimensional energy poverty is estimated by using FGT(1984)indexing approach,along with the relative poverty line.While,latter on multidimensional energy poverty is also explored by using Alkire and Foster(2007)indexing approach and also three different dual cut-offs 2,3 and 4.The calculated measure of both indexing approach demonstrates that energy poverty in unidimensional,as well as multidimensional perspective,is purely a rural phenomenon because at national,sub-national and divisional level households of rural areas are serious victimize of the current issue.Provincial-level households of Baluchistan is highly victimised of both unidimensional as well as multidimensional energy poverty.Households of these areas have lower income and also poor access to basic energy appliance,which leads to boost energy poverty in both measures.However,at different cut-off,it has been observed that energy poverty shows a different response with the varying value of dual cut off from K=2 to K=4.Energy poverty decline that also confirms that most of the Pakistani population is deprived of basic energy facilities.Finally,deprivation measure reveals that in the study periods since 2010-11 to 2013-14 households are deprived in basic facilities like housing services,entertainment and communication because all of these are connected with the availability of electricity and gas.In the study period,Pakistan faces severe gap and electricity crises that discourage households from buying more electricity as well as gas appliances and leads to boost energy deprivation.After indexing approach,two different statistical approaches are utilized in the study,to test which factors are triggering multidimensional severe energy crises in Pakistan and how these energy crises are affecting the GDP per capita of Pakistan.To investigate these issues,logistic regression and multiple regression models are also utilized.Results of both measures signify that all socio-economic and demographic character has a significant impact on energy poverty and increase(decline)in these factors positively(negatively)effect the multidimensional energy poverty in Pakistan.Similarly,an increase in multidimensional energy poverty itself adversely affects the GDP per capita.The increase in multidimensional energy poverty is instigated by deprivation in basic appliances and also such deprivation in the basic appliance is caused a reduction in expenditure on these appliances that ultimately leads to a declining GDP per capita.By summing up the overall discussion,in indexing approach,poverty is a purely rural phenomenon in both measures in Pakistan.According to the econometrics model,it has been observed that socio-economic and demographic variables have a significant impact on increasing(decline)multidimensional energy poverty,and multidimensional energy poverty has a significant impact on GDP per capita.Multidimensional deprivation and GDP per capita are interlinked with each other.To boost up GDP per capita in Pakistan,multidimensional energy poverty is also one of the key factors,which is needed to be addressed.If the particular issue is not given serious consideration,it would provoke the number of problems for the country and cause a significant amount of GDP per capita loss over time.Under the light of results,policy implication has been designed in twofold,first to reduce energy poverty at the country level,and provincial level.In the uni-dimensional spectrum,govt should focus on improving the per head income of households of rural areas,and subsides them in electricity and gas bills.While,in multidimensional poverty,those rural areas haven't access to electricity and gas facility.The government should need to focus these areas to provide the facility of electricity and gas so they can also utilize instruments of electricity and gas,that leads to a significant decline in energy poverty in the multidimensional spectrum.Furthermore,it has been observed that GDP per capita of Pakistan is adversely affected by the multidimensional energy poverty,govt.should also focus on emergency bases to decline energy poverty in Pakistan level,that is significantly helpful to boost GDP per capita.