The Impact of Pradhan Mantri Ujjwala Yojana on Indian Households

TL;DR

This study assesses the Pradhan Mantri Ujjwala Yojana's effect on LPG adoption among India's poor, showing modest increases in usage and regional disparities, highlighting the need for targeted policies to sustain benefits.

Contribution

It provides empirical evidence on PMUY's impact using advanced econometric methods and highlights regional and social disparities in LPG adoption.

Findings

2.1 percentage point increase in LPG consumption due to PMUY

Significant progress in North, West, South regions

Less impact on Scheduled Tribes households

Abstract

This study critically evaluates the impact of the Pradhan Mantri Ujjwala Yojana (PMUY) on LPG accessibility among poor households in India. Using Propensity Score Matching and Difference-in-Differences estimators and the National Family Health Survey (NFHS) dataset, the Average Treatment Effect on the interdedly Treated is a modest 2.1 percentage point increase in LPG consumption due to PMUY, with a parallel decrease in firewood consumption. Regional analysis reveals differential impacts, with significant progress in the North, West, and South but less pronounced effects in the East and North East. The study also underscores variance across social groups, with Schedule Caste households showing the most substantial benefits, while Scheduled Tribes households are hardly affected. Despite the PMUY's initial success in facilitating LPG access, sustaining its usage remains challenging. Policy should emphasise targeted interventions, income support, and address regional and community-specific disparities for the sustained usage of LPG.