Assessing the Disparities of Per-capita Electricity Consumption in North-Eastern States of India Using Gini Index and Lorenz Curve

Abstract

Electricity is the basic need for individuals, households and industries. It is used for everyday life activities by the households, agricultural activities, commercial buildings and industries. The per capita electricity consumption is a proxy indicator growth and development status of a region. All the north eastern states consume per-capita electricity lesser than the national average except Sikkim. The per capita consumption of electricity by Nagaland, Assam and Manipur is nearly just one-third of the national average. Notably, these three north eastern states consume just 40 percent of per capita electricity compared to the highest consumer state Meghalaya. The present study is an evaluation of the per-capita electricity consumption trend and inequality amongst the north-eastern states of India using Gini coefficient and Lorenz curve for two different time periods i.e. 2007 and 2017. We find that Tripura’s annual linear growth rate of per-capita electricity consumption is the highest (3 percent) while that of Meghalaya is the least (1 percent) and the other five states are growing equally at the rate of 2 percent. The Gini coefficient is found to be decreasing from 0.137 in 2007 to 0.122 in 2017. We conclude that the level of inequality is reducing among north eastern states of India though the per-capita consumption of electricity is less than the national average.