Working Paper N°6/2024: Energy Poverty in Bolivia: Levels, trends, and inequalities at the Municipal level

Summary

Access to clean energy is critical for economic development, poverty reduction, and enhancing individual well-being, aligning with Sen’s capability approach which emphasizes the importance of energy services in achieving essential life functions. Despite its importance, energy poverty remains underexplored in Latin America, particularly in Bolivia. We address this gap by evaluating energy poverty convergence at the municipal level in Bolivia from 2012 to 2016. We employ a β-convergence analysis to compare observed and expected convergence rates, identifying municipalities that are energy poverty pockets—regions with high initial poverty levels and slow improvement rates. Our study also characterizes these lagging municipalities and projects their energy poverty levels for 2030. Findings from our study aim to inform targeted public policies by highlighting regional disparities and providing a nuanced understanding of energy poverty dynamics in Bolivia, thereby contributing to more effective interventions aligned with national and international development goals.