The persistence of energy poverty: A dynamic probit analysis
This paper contributes to the growing literature on energy poverty in developing countries. We use a dynamic probit estimator on three rounds of panel data from urban Ethiopia to estimate a model of the probability of being energy poor and to investigate the persistence of energy poverty. We also study the impact of energy price in!ation,which Ethiopia experienced during 2007–2009, on energy use and energy poverty.We"nd strong evidence of state dependence in energy poverty. A household that is energy poor in one round is up to 16% more likely to be energy poor in the subsequent round.