Energy equity analysis in Metro Manila using household expenditure data

Abstract

Energy poverty in the Philippines has been prevalent, but current energy equity metrics in the Philippines are done only on a national level. Lorenz curve and Gini coefficient are concepts traditionally applied in economics to measure wealth inequality. In this paper, the authors will adapt the methodology used by Jacobson to measure energy inequality in Metro Manila for 2015 using energy expenses of households retrieved from the Family Income and Expenditure Survey conducted and published by the Philippine Statistics Authority every three years containing energy expenses, income, and socio-economic identifiers of a household. The main energy resources listed in the survey are electricity, LPG, kerosene, fuelwood, charcoal, and biomass residue. To translate energy expenses to energy consumption, historical costs available from public records are used in conjunction with the fuels’ calorific values. From there, Lorenz curves and Gini coefficients are calculated for districts and cities in Metro Manila. Further comparison reveals the relationship of income and energy consumption Gini coefficients in the region. Based on the results, the authors include recommendations to improve the use of Lorenz curve and Gini coefficient as a metric in quantifying energy equity.