Impact of Pradhan Mantri Ujjwala Yojana on LPG adoption and firewood use in India: a difference-in-differences approach

Abstract The transition to clean cooking fuels is critical to mitigate the adverse health impacts of solid fuel use. Launched in 2016, India’s Pradhan Mantri Ujjwala Yojana (PMUY) provides subsidized Liquefied Petroleum Gas (LPG) connections to Below Poverty Line (BPL) households to promote clean cooking, aligning with United Nations Sustainable Development Goal (SDG) 7. This study evaluates PMUY’s impact on LPG adoption and firewood use in rural India using data from the National Family Health Survey (NFHS) and a Propensity Score Matching with Difference-in-Differences (PSM-DID) methodology. Our findings show that PMUY significantly increased LPG adoption by 13% more for marginalized households (Scheduled Castes [SC], Scheduled Tribes [ST], and Other Backward Classes [OBC]) compared to non-marginalized households and by 9.7% more for non-Hindu households (Muslims, Christians, and others) compared to Hindu households. Similarly, PMUY reduced firewood use by 11.3% more for marginalized households and 9.1% more for non-Hindu households. Despite these successes, marginalized groups, particularly ST households, face persistent barriers such as geographic isolation, economic constraints, and socio-cultural norms, limiting the program’s impact. The study recommends targeted interventions, including refill subsidies, enhanced rural LPG distribution networks, and culturally tailored awareness programs, to accelerate the clean energy transition. These findings offer valuable insights for policymakers in developing economies to promote equitable access to clean cooking fuels.