Energy equity as a major driver of energy intensity in South Asia

Energy efficiency is promoted worldwide as an important measure to address growing energy demand and reduce energy intensity of the gross domestic product and emissions of greenhouse gases and air pollutants. We analyzed aggregate and sectoral energy intensities in Bangladesh, India, Nepal, Pakistan, and Sri Lanka during 2000–2017 and decomposed the aggregate energy intensity into its four key determinants. Past energy intensity analysis methods have often used changes in factors related to only energy and economic structure and ignored energy equity factors. We show that energy equity factors (access to electricity and per capita electricity consumption) strongly influence the energy intensity of a country/region. In countries with less than 100% access to electricity, changes in energy equity factors negatively affected energy intensity while changes in energy structure and income level improved it. Energy equity is an important consideration for assessment, development and implementation of sustainable energy efficiency policies of a country.