Residential Electricity Efficiency and Implications for Vietnam’s Clean Energy Transition

Vietnam’s energy consumption relative to its average national income per capitais significantly higher than that of similar countries like India or China. Currentenergy use is not sustainable and in the future may threaten energy supply security. Of the total electricity consumption, the residential sector accounts for upto a third, making it a critical component for policy interventions. We employ astochastic frontier model and three rounds of nationally representative householdliving standards surveys from 2014-2018 to measure residential electricity efficiencyand its determinants in Vietnam. Our result shows that the average energy efficiencyin Vietnam is approximately 75%, which is significantly less efficient thanmany countries of the same development status. We then discuss Vietnam’s nationalelectricity efficiency policies, and recommend major improvements which willbe necessary if Vietnam wants to accelerate its long-term clean and sustainableenergy prospects.