Switching off or switching source: Energy consumption and household response to higher energy prices in the Kyrgyz Republic

The Energy Poverty Action Initiative of the World Economic Forum suggests that access to energy is fundamental to improving quality of life and is a key imperative for economic development. This is particularly true in Central Asia, where winters are harsh and long. Changes in energy prices affect the purchasing power of households, hitting the poor in particular. The impact very much depends on a household's energy basket and the available strategies for switching to alternative energy sources. Using data from the 2011 Kyrgyz Integrated Household Survey, this article analyses the profile of household energy consumption and the impact of electricity tariff increases on the probability that households would switch to alternative energy sources. The results suggest that households would respond to an electricity price increase by increasing consumption of fuels; households would be likely to move away from electricity-only heating and towards stove-only heating.