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| 1 |
ID:
176113
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| Summary/Abstract |
This paper evaluates the effects of cash transfers program, that is, the Benazir Income Support Program (BISP) on environmental poverty using household data. A multidimensional environmental poverty index (EPI), based on four dimensions of environmental services, namely, dwelling, water, sanitation, and energy, is developed using the Alkire-Foster method. EPI shows that about 57% of households face multidimensional environmental poverty in the sample group. Our empirical analysis, based on regression discontinuity design, indicates that BISP cash transfers have a negative and significant impact on environmental poverty. This empirical evidence implies that cash transfers increase the use of environmental services among BISP beneficiaries. The effects of cash transfers on environmental poverty vary from one province to another, which emphasizes the importance of regional differences and heterogeneities. The impacts of BISP cash transfers on various dimensions of environmental poverty, such as dwelling, water, sanitation, and energy, also differ across provinces. The government should expand social protection programs to overcome environmental poverty with a focus on the use of environmental services. However, any efforts to reduce environmental poverty through cash transfers may depend on household preferences and availability of environmental services.
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| 2 |
ID:
176808
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| Summary/Abstract |
We analyze the impact of the unconditional cash transfer program, namely the Benazir Income Support Program (BISP) on fuel choices among ultra-poor in Pakistan using two rounds of household-level data collected in 2011 and 2016. The analysis based on regression discontinuity design shows that BISP cash transfer has a significant impact on interfuel substitution. Cash transfer increases the use of modern fuels among BISP beneficiaries. Besides, cash transfer also encourages the use of intermediate fuels, even in some cases traditional fuels. Cash transfer also increases the share of fuel expenses in total household expenses. Therefore, the fuel stacking theory provides a better explanation of interfuel substitution than the energy ladder theory of the cash transfer program. The provincial analysis shows that interfuel substitution exists due to cash transfer but varies from province to province, signifying the role of regional heterogeneities. The net impact on fuel choices may depend on the availability of different fuel components. From policy perspective, the expansion of the cash transfer program, as planned by the government, would require a reasonable investment in the energy sector to ensure an uninterrupted supply of modern fuels.
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