Elderly well-being amidst energy poverty: Exploring the health, social, and economic impacts in Vietnam

Abstract

Vietnam's electrification increased access from 14 % in 1990 to 97 % by 2010, yet by 2017, 25 % of households still faced inadequate electricity, and nearly a third relied on traditional fuels. This energy poverty, particularly among the elderly, continues to affect well-being and health as the population ages. This study investigates the impact of energy poverty on the life satisfaction of elderly individuals, using data from the 2011 Vietnam National Aging Survey. As one of the first studies to explore this relationship in Vietnam, it contributes to the literature by providing valuable empirical evidence of the causal link between energy poverty and life satisfaction, shedding light on the mechanisms behind the observed effects. By adopting a multidimensional approach, we measure energy poverty across three distinct thresholds. To address potential endogeneity concerns, we employ a two-stage least squares regression, using provincial-level information and communications technology infrastructure as an instrumental variable. Our findings consistently demonstrate that energy poverty significantly and negatively impacts the life satisfaction of the elderly across all three measures. To ensure the robustness of our results, we conduct additional tests, including alternative constructions of energy poverty and the use of different instrumental variables, such as the number of Internet users per 100 population at the provincial level. We further validate our conclusions through other methods, including plausible exogenous instrumental variables and double/debiased machine learning, confirming the stability and reliability of our findings. Additionally, we identify two key pathways through which energy poverty affects life satisfaction: physical health and mental health.

Subject classification codes

D10, I10, I15, O10, O18.