Publication:
Income and Energy Consumption in Mexican Households

Loading...
Thumbnail Image
Files in English
English PDF (826.03 KB)
660 downloads
English Text (83.76 KB)
104 downloads
Published
2014-05
ISSN
Date
2014-05-14
Editor(s)
Abstract
The analysis of household energy consumption patterns is critical for evaluating public mechanisms, such as subsidies and social tariffs that aim to provide lower income earners with better access to energy sources. This paper focuses on Mexican households to analyze the relations between their levels of income, consumption of different forms of energy, and the role played by different household characteristics. Using microdata from the Mexican Income Expenditure Surveys, the paper first relate income and energy expenditure to determine the shape of this relation. It then applies OLS and Tobit models to determine how income levels affect energy consumption in relation to other covariates. The results show a positive relation for income deciles and energy consumption and some household characteristics -- pointing to differentiated mechanisms for improving energy use.
Link to Data Set
Citation
Rodriguez-Oreggia, Eduardo; Yepez-Garcia, Rigoberto Ariel. 2014. Income and Energy Consumption in Mexican Households. Policy Research Working Paper;No. 6864. © http://hdl.handle.net/10986/18339 License: CC BY 3.0 IGO.
Associated URLs
Associated content
Report Series
Report Series
Other publications in this report series
  • Publication
    Climate and Social Sustainability in Fragility, Conflict, and Violence Contexts
    (Washington, DC: World Bank, 2026-01-07) Cuesta Leiva, Jose Antonio; Huff, Connor
    Climate change is widely recognized as a driver of violent conflict, but its broader social effects remain less understood. Ignoring these dimensions risks a vicious cycle where climate policies might undermine socially just adaptation. Evidence is still limited on how climate shocks influence political participation, trust, or migration. This paper helps fill that gap by examining links between climate change, conflict, and social sustainability, with a focus on inclusion, resilience, cohesion, and legitimacy. Using secondary data from 2019–24, the study applies simple correlation-based methods to test three hypotheses on the nature, severity, and composition of these associations. The analysis combines multiple climate impact measures, new conflict classifications, recent social sustainability frameworks, and controls for population and geography. The results reveal strong correlations—not causation—between climate events and contexts of fragility, conflict, and violence. Climate impacts are most pronounced in both national and subnational conflict settings. The study also finds robust links between fragility, conflict, and violence and low levels of social sustainability, reflecting its role as both a driver and consequence of conflict. Some dimensions—such as violent events and insecurity—appear weaker in areas most affected by climate shocks. Two of the hypotheses are supported, and one remains inconclusive.
  • Publication
    The Macroeconomic Implications of Climate Change Impacts and Adaptation Options
    (Washington, DC: World Bank, 2025-05-29) Abalo, Kodzovi; Boehlert, Brent; Bui, Thanh; Burns, Andrew; Castillo, Diego; Chewpreecha, Unnada; Haider, Alexander; Hallegatte, Stephane; Jooste, Charl; McIsaac, Florent; Ruberl, Heather; Smet, Kim; Strzepek, Ken
    Estimating the macroeconomic implications of climate change impacts and adaptation options is a topic of intense research. This paper presents a framework in the World Bank's macrostructural model to assess climate-related damages. This approach has been used in many Country Climate and Development Reports, a World Bank diagnostic that identifies priorities to ensure continued development in spite of climate change and climate policy objectives. The methodology captures a set of impact channels through which climate change affects the economy by (1) connecting a set of biophysical models to the macroeconomic model and (2) exploring a set of development and climate scenarios. The paper summarizes the results for five countries, highlighting the sources and magnitudes of their vulnerability --- with estimated gross domestic product losses in 2050 exceeding 10 percent of gross domestic product in some countries and scenarios, although only a small set of impact channels is included. The paper also presents estimates of the macroeconomic gains from sector-level adaptation interventions, considering their upfront costs and avoided climate impacts and finding significant net gross domestic product gains from adaptation opportunities identified in the Country Climate and Development Reports. Finally, the paper discusses the limits of current modeling approaches, and their complementarity with empirical approaches based on historical data series. The integrated modeling approach proposed in this paper can inform policymakers as they make proactive decisions on climate change adaptation and resilience.
  • Publication
    Institutional Capacity for Policy Implementation: An Analytical Framework
    (Washington, DC: World Bank, 2026-01-07) Kim, Galileu; Kumar, Tanu; Ramalho, Rita; Russell, Stuart
    State capacity is an important prerequisite for policy implementation, yet at the country level it is difficult to measure, assess, and reform. This paper proposes a focus on institutional capacity: the ability of public institutions to implement the specific policy mandates for which they are responsible. Based on a review of existing literature, the paper defines the different dimensions that compose institutional capacity and groups them into two cross-cutting categories: organizational dimensions (personnel, financial resources, information systems, and management practices) and governance dimensions (transparency, independence, and accountability). The paper proposes measures for organizational and governance dimensions using existing data, shows intra-institutional variation of these measures within countries, and discusses how new data could be collected for better measurement of these concepts. Finally, the paper illustrates how the framework can be used to diagnose the sources of common problems related to weak policy implementation.
  • Publication
    South Africa’s Fragmented Cities: The Unequal Burden of Labor Market Frictions
    (Washington, DC: World Bank, 2026-01-08) Baez, Javier E.; Kshirsagar, Varun
    Using high-resolution administrative, census, and satellite data, this paper shows that South African cities are characterized by spatial mismatches between where people live and where jobs are located, relative to 20 global peers. Areas within 5 kilometers of commercial centers have 9,300 fewer residents per square kilometer than expected, which is 60 percent below the global median. Poor, dense neighborhoods are most affected. In Johannesburg, a 10-percentile increase in distance from the nearest business hub corresponds to a 3.7-percentile drop in asset wealth (a proxy of household wellbeing) and 4.9-percentile drop in employment. In Cape Town, the declines are 4.0 and 3.7 percentiles, respectively. Employment is 87 percent lower in the poorest decile than the richest in Johannesburg and 61 percent lower in Cape Town. These findings suggest that South Africa’s spatial organization of people and economic activity constrains agglomeration and reinforces inequality. This methodology provides a scalable and standardized data-driven framework to analyze spatial accessibility and agglomeration frictions in complex, data-constrained urban systems.
  • Publication
    Investment in Emerging and Developing Economies
    (Washington, DC: World Bank, 2026-01-07) Adarov, Amat; Kose, M. Ayhan; Vorisek, Dana
    The world faces a pressing challenge to meet key development objectives amid slowing growth and rising macroeconomic and geopolitical risks. With the number of job seekers rising rapidly, infrastructure shortfalls continuing to be large, and climate costs mounting, the case for a significant investment push has never been stronger. Yet the capacity to respond in many emerging markets and developing economies has eroded. Since the global financial crisis, investment growth has slowed to about half its pace in the 2000s, with both public and private investment weakening. Foreign direct investment inflows—a critical source of capital, technology, and managerial know-how—have also fallen sharply and become increasingly concentrated, leaving low-income countries with only a marginal share. The risks of further retrenchment are significant, as trade tensions, policy uncertainty, and elevated debt levels continue to weigh on investment. Reigniting momentum will require ambitious domestic reforms to strengthen institutions, rebuild macro-fiscal stability, and deepen trade and investment integration—the foundations of a supportive business climate. At the same time, international cooperation is indispensable. A renewed commitment to a predictable system of cross-border trade and investment flows, combined with scaled-up financial support and sustained technical assistance, is essential to help emerging markets and developing economies—especially low-income countries and economies in fragile and conflict situations—bridge financing gaps and implement the domestic reforms needed to restore investment as an engine of growth, jobs, and development.
Journal
Journal Volume
Journal Issue

Related items

Showing items related by metadata.

  • Publication
    Energy Sector Reform and the Pattern of the Poor : Energy Use and Supply, A Four Country Study - Botswana, Ghana, Honduras and Senegal
    (World Bank, Washington, DC, 2006-03-01) Prasad, Gisela
    This project had the following objectives: to undertake a detailed assessment for four countries of the steps taken to reform the energy sector and their impact (or not) on various groups of poor households; to identify patterns of energy use by poor households in various situations; to identify patterns of supply of energy to poor households; and to identify links between the supply and the use of energy by poor households, which are capable of being directly impacted by sector reform. Such links include: the actual use of various sources of energy (e.g. electricity); the form in which the source is used (e.g. battery or grid connection); its associated cost (capital costs and fuel costs); and the nature of the delivery form (state utility or local off-grid company, retailer of batteries or of LPG). The design of a template for future assessment of the impact of sector reform on the poor in other countries. Through the use of local consultants, wherever possible, the engagement in capacity building for economic and policy analysis of the energy sector.
  • Publication
    Assessment of Household Energy Deprivation in Tajikistan : Policy Options for Socially Responsible Reform in the Energy Sector
    (Washington, DC, 2014-06) World Bank; Swinkels, Rob
    Every year an estimated seventy percent of Tajikistan's population suffers from severe electricity shortages in winter. The energy sector was affected by dramatic changes over the last few decades - regional energy cooperation was disrupted after the break-up of the Soviet Union, gas imports were interrupted, and the state was unable to invest adequately in the maintenance of the national energy infrastructure. Tajikistan has been facing severe power shortages in winter months since the district heating system collapsed and households as a consequence started to use electricity for heating purposes. This report assesses energy deprivation in Tajikistan with an emphasis on the human dimension, paying special attention to rural areas. It takes a broad look at household energy security, affordability, and coping mechanisms, in order to inform short and medium-term policies to mitigate energy deprivation. Firstly, it analyzes energy use and spending patterns across diverse groups of consumers, low and middle-income, rural and urban, people who live in houses and those who live in apartments, as the type of energy used determines household vulnerability. Secondly, it examines impacts of energy expenses on the household budget, and strategies adopted to cope with energy payments. Thirdly, it collects consumer attitudes towards potential measures to improve energy security and affordability, such as social assistance and support to improve energy efficiency. It explores the conditions under which an electricity tariff increase would gain acceptance among consumers. Fourthly and lastly, the report simulates the quasi-fiscal impact and the targeting performance of a series of measures that could cushion the impact of rising energy expenditure.
  • Publication
    Central American Regional Programmatic Study for the Energy Sector : General Issues and Options - Sector Overview
    (World Bank, 2010-11-01) World Bank
    The six Central American countries of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama share a long tradition of regional integration, including a common market, substantial intraregional trade, as well as coordinated commercial policies, such as the Central American Free Trade Agreement (CAFTA) with the US. The most significant example of regional integration in the energy subsector consists of the Sistema de Interconexion Electrica para America Central (SIEPAC), an interconnection line that is expected to link the six countries in mid-2010. The creation of the interconnection has been a long-term effort, starting in the early 1990s and culminating in 2010. This report provides an overview of the energy sector in Central America, with a focus on the power subsector, and highlights the key challenges and options for meeting future energy and development goals. One of the main objectives of the study is to identify paths for collective action whereby individual countries, and the region as a whole, could benefit from a more integrated approach to developing energy infrastructure and connecting energy markets.
  • Publication
    Review of Environmental, Economic and Policy Aspects of Biofuels
    (World Bank, Washington, DC, 2007-09) Rajagopal, Deepak; Zilberman, David
    The world is witnessing a sudden growth in production of biofuels, especially those suited for replacing oil like ethanol and biodiesel. This paper synthesizes what the environmental, economic, and policy literature predicts about the possible effects of these types of biofuels. Another motivation is to identify gaps in understanding and recommend areas for future work. The analysis finds three key conclusions. First, the current generation of biofuels, which is derived from food crops, is intensive in land, water, energy, and chemical inputs. Second, the environmental literature is dominated by a discussion of net carbon offset and net energy gain, while indicators relating to impact on human health, soil quality, biodiversity, water depletion, etc., have received much less attention. Third, there is a fast expanding economic and policy literature that analyzes the various effects of biofuels from both micro and macro perspectives, but there are several gaps. A bewildering array of policies - including energy, transportation, agricultural, trade, and environmental policies - is influencing the evolution of biofuels. But the policies and the level of subsidies do not reflect the marginal impact on welfare or the environment. In summary, all biofuels are not created equal. They exhibit considerable spatial and temporal heterogeneity in production. The impact of biofuels will also be heterogeneous, creating winners and losers. The findings of the paper suggest the importance of the role biomass plays in rural areas of developing countries. Furthermore, the use of biomass for producing fuel for cars can affect access to energy and fodder and not just access to food.
  • Publication
    Restoring Balance : Bangladesh's Rural Energy Realities
    (World Bank, Washington, DC, 2009-03) Asaduzzaman, M.; Barnes, Douglas F.; Khandker, Shahidur R.
    This study, the first to concentrate on Bangladesh's energy systems and their effects on the lives of rural people, drew on these background studies, as well as other World Bank-financed research on IAP and rural infrastructure, to present a rural energy strategy for the country. The study's broad aim was to identify ways to improve the living standard in rural Bangladesh through better and more efficient use of energy, while creating an environment conducive to growth and poverty reduction. For any developing country, the crux of a rural energy strategy is to have more and better choices for meeting rural demand for energy through market mechanisms and sound policy. This goes hand in hand with the development of competent implementing institutions, which are critical to the process. Also important are new supply- and demand side technologies that can be used to raise rural people's welfare and improve productivity to increase growth prospects. Accordingly, the rural energy strategy advocated by this study aims to satisfy the types of demand that increase household welfare and raise rural growth prospects as energy becomes a direct input into the production process.

Users also downloaded

Showing related downloaded files

  • Publication
    Thailand Monthly Economic Monitor, October 2025
    (Washington, DC: World Bank, 2025-10-22) World Bank
    Fiscal conditions remained stable, with a modest widening of the deficit to 3.1 percent of GDP. New stimulus measures are expected to support short-term demand without breaching the public debt ceiling. Inflation stayed negative, reflecting lower energy and food prices amid subdued domestic demand. The central bank kept the policy rate unchanged, citing limited policy space. Thailand’s growth momentum has slowed further as manufacturing activity and services weakened as projected. Tourism remained subdued, largely due to fewer Chinese visitors. Goods exports also slowed as earlier front-loaded orders faded, particularly in agriculture and industrial goods. The Thai baht depreciated in early October as the US dollar appreciated and the current account turned negative.
  • Publication
    Digital Africa
    (Washington, DC: World Bank, 2023-03-13) Begazo, Tania; Dutz, Mark Andrew; Blimpo, Moussa
    All African countries need better and more jobs for their growing populations. "Digital Africa: Technological Transformation for Jobs" shows that broader use of productivity-enhancing, digital technologies by enterprises and households is imperative to generate such jobs, including for lower-skilled people. At the same time, it can support not only countries’ short-term objective of postpandemic economic recovery but also their vision of economic transformation with more inclusive growth. These outcomes are not automatic, however. Mobile internet availability has increased throughout the continent in recent years, but Africa’s uptake gap is the highest in the world. Areas with at least 3G mobile internet service now cover 84 percent of Africa’s population, but only 22 percent uses such services. And the average African business lags in the use of smartphones and computers as well as more sophisticated digital technologies that catalyze further productivity gains. Two issues explain the usage gap: affordability of these new technologies and willingness to use them. For the 40 percent of Africans below the extreme poverty line, mobile data plans alone would cost one-third of their incomes—in addition to the price of access devices, apps, and electricity. Data plans for small- and medium-size businesses are also more expensive than in other regions. Moreover, shortcomings in the quality of internet services—and in the supply of attractive, skills-appropriate apps that promote entrepreneurship and raise earnings—dampen people’s willingness to use them. For those countries already using these technologies, the development payoffs are significant. New empirical studies for this report add to the rapidly growing evidence that mobile internet availability directly raises enterprise productivity, increases jobs, and reduces poverty throughout Africa. To realize these and other benefits more widely, Africa’s countries must implement complementary and mutually reinforcing policies to strengthen both consumers’ ability to pay and willingness to use digital technologies. These interventions must prioritize productive use to generate large numbers of inclusive jobs in a region poised to benefit from a massive, youthful workforce—one projected to become the world’s largest by the end of this century.
  • Publication
    Agricultural Growth and Poverty Reduction
    (World Bank, 2009-11-30) de Janvry, Alain; Sadoulet, Elisabeth
    Agricultural growth has long been recognized as an important instrument for poverty reduction. Yet, measurements of this relationship are still scarce and not always reliable. The authors present additional evidence at both the sectoral and household levels based on recent data. Results show that rural poverty reduction has been associated with growth in yields and in agricultural labor productivity, but that this relation varies sharply across regional contexts. GDP growth originating in agriculture induces income growth among the 40 percent poorest, which is on the order of three times larger than growth originating in the rest of the economy. The power of agriculture comes not only from its direct poverty reduction effect but also from its potentially strong growth linkage effects on the rest of the economy. Decomposing the aggregate decline in poverty into a rural contribution, an urban contribution, and a population shift component shows that rural areas contributed more than half the observed aggregate decline in poverty. Finally, using the example of Vietnam, the authors show that rapid growth in agriculture has opened pathways out of poverty for farming households. While the effectiveness of agricultural growth in reducing poverty is well established, the effectiveness of public investment in inducing agricultural growth is still incomplete and conditional on context.
  • Publication
    Ukraine Country Environmental Analysis
    (World Bank, Washington, DC, 2016-01) World Bank
    The objective of the Country Environmental Analysis (CEA) is to assess the adequacy and performance of the policy, legal, and institutional framework for environmental management in Ukraine, in light of the decentralization process of environmental governance and wider reform objectives, and to provide recommendations to government to address the key gaps identified. Ukraine is the second largest country in Europe and has a population of 43 million, the majority of whom live in urban areas. It is a lower middle income country, with the services, industry and agriculture sectors being main contributors to the country’s Gross Domestic Product (GDP). Ukraine faces a number of environmental challenges, as identified in its National Environmental Strategy 2020 (NES). Key among these are: air pollution; quality of water resources and land degradation; solid waste management; biodiversity loss; human health issues associated with environmental risk factors; in addition to climate change. The scope of Ukrainian environmental legislation is quite broad and comprehensive (more than 300 legal acts) and covers most areas of environmental protection and natural resources management. However, the environmental legislation faces a number of weaknesses:The environmental legislation is largely declaratory in nature and does not have all the essential enforcement mechanisms for the implementation of legal acts and international agreements; Many of the acts are not coordinated with each other; and Legislation undergoes limited analysis of its impact—for example, no in-depth analysis such as Regulatory Impact Analysis is conducted for proposed pieces of legislation.
  • Publication
    Regional Poverty and Inequality Update: Latin America and the Caribbean, October 2025
    (Washington, DC: World Bank, 2025-10-23) World Bank
    This brief summarizes recent facts related to poverty and inequality in Latin America and the Caribbean (LAC) using the latest wave of harmonized household surveys from the Socio-Economic Database for LAC (SEDLAC). This brief was produced by the Poverty Global Practice in the LAC Region of the World Bank.