How to target electricity and LPG subsidies in India: Step 1. identifying policy options

Major gaps in knowledge are limiting better targeting of energy access subsidies in India. The latest distributional analyses of energy consumption subsidies—that is, how benefits are shared across different income groups—are based on 2011 census data that are now significantly dated. This report identifies a number of specific targeting interventions that could better target energy subsidies. It calls for dedicated research to estimate the distributional performance of existing subsidies and various targeting options in order to better inform policy design.