ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Subsidies for Whom?

The Case of LPG in India

Using data from the Indian Human Development Survey 2004-05, this article shows that with the change in LPG pricing, neither the benefi ciaries of the current LPG subsidy nor the poorest households are the ones to be affected. The larger agenda must be a multi-pronged policy that promotes improved cooking stoves and cleaner fuels, provides specifi c incentives for poor households to be able to make the switch, and improves LPG distribution networks in order to expand clean fuel use in the country.

An earlier version of this article was presented at the Centre for Public Policy Hackathon at the Indian I nstitute of Management, Bangalore in August 2012. We are grateful to Arnab Mukherjee, Deepak Malghan and Hema Swaminathan for their comments. We thank a referee of this journal for useful suggestions.

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