In 2016, India introduced the Pradhan Mantri Ujjwala Yojana (PMUY) policy, which offers below-the-poverty-line (BPL) households a free liquified petroleum gas (LPG) connection. Using a difference-in-differences approach with a non-equivalent comparison group, we provide causal evidence of the effect of the PMUY policy on the probability of obtaining an LPG connection, overall LPG consumption, and clean cooking access. Overall, the policy led to a 3.3-to-3.6 percentage point increase in the probability of obtaining an LPG connection for PMUY-eligible households. We also find that PMUY-households will consume 7.4 fewer kgs of LPG per year than the comparison group and no effect on the tier level of clean cooking access or opting for home delivery. Our work suggests the need to expand the policy to address consumption and the Clean Cooking Tier Group. Finally, this analysis advocates investigation into the size of the refill subsidy beyond simply improved targeting of BPL households.

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Posted 25 Aug, 2020
Posted 25 Aug, 2020
In 2016, India introduced the Pradhan Mantri Ujjwala Yojana (PMUY) policy, which offers below-the-poverty-line (BPL) households a free liquified petroleum gas (LPG) connection. Using a difference-in-differences approach with a non-equivalent comparison group, we provide causal evidence of the effect of the PMUY policy on the probability of obtaining an LPG connection, overall LPG consumption, and clean cooking access. Overall, the policy led to a 3.3-to-3.6 percentage point increase in the probability of obtaining an LPG connection for PMUY-eligible households. We also find that PMUY-households will consume 7.4 fewer kgs of LPG per year than the comparison group and no effect on the tier level of clean cooking access or opting for home delivery. Our work suggests the need to expand the policy to address consumption and the Clean Cooking Tier Group. Finally, this analysis advocates investigation into the size of the refill subsidy beyond simply improved targeting of BPL households.

Figure 1
There is NO Competing Interest.
This is a list of supplementary files associated with this preprint. Click to download.
Supplemental Information
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