NEW DELHI: A recent analysis of the Pradhan Mantri Ujjwala Yojana (PMUY) claimed the scheme as a highly cost-effective welfare initiative, estimating well-being benefits of Rs 6.46 lakh crore- approximately 45 times its initial outlay of Rs 14,000 crore- when assessed through a citizen well-being framework.
Authored by Radhika Jha, an IAS officer and Secretary to the Government of Uttarakhand, the study was published by the Observer Research Foundation and provides a framework for assessing policy outcomes beyond traditional economic metrics.
Addressing a widespread problem
Prior to PMUY’s launch in 2016, more than 64 per cent of India’s population reportedly lacked access to clean cooking fuel. In rural areas, this figure was even higher. Households primarily relied on firewood, coal, and cow dung cakes- methods that contributed significantly to indoor air pollution and posed severe health risks, especially to women and children. The World Health Organization had equated the indoor pollution exposure of Indian women in such settings to smoking 400 cigarettes an hour.
The use of solid fuels also carried environmental consequences and imposed a heavy time burden on rural women, who spent an average of 374 hours each year collecting firewood. This affected their physical health and limited opportunities for education, employment, and leisure.
The policy impact
PMUY was launched as a social intervention rather than just a subsidy programme. According to Jha's study, key design features included:
The scheme's impact is increasingly being measured through a “well-being” lens.
Measuring well-being: The WELLBY approach
The analysis uses WELLBYs- Well-being Years- to assess PMUY’s benefits. One WELLBY represents a one-point improvement in life satisfaction for one person over a year, rated on a 0–10 scale. The cost of one WELLBY is estimated at Rs 13,000, adjusted for Indian income levels based on global benchmarks.
The study identifies four key channels through which PMUY improved well-being: health, women’s empowerment, employment, and environmental benefits.
Reported findings
Health Improvements- The shift from solid fuels to LPG has reduced indoor air pollution, lowering the incidence of respiratory illnesses and other health issues. With an estimated 20 million women affected, the health benefits account for 4.4 million WELLBYs annually.
Women empowerment- The time saved from not having to collect firewood allowed many women to pursue education, employment, or community engagement. Assuming 25 per cent of beneficiaries (20 million women) experienced this benefit, this equates to 2.4 million WELLBYs per year.
Employment generation- PMUY helped create an estimated 100,000 direct jobs in LPG distribution and infrastructure. Using life satisfaction coefficients, this contributes 0.07 million WELLBYs annually.
Environmental gains- The use of LPG reduced deforestation and air pollution. With an estimated 180 million people experiencing improved air quality, the environmental benefit is estimated at 3.6 million WELLBYs per year.
Cost-effectiveness analysis- The total annual WELLBYs generated by PMUY are estimated at 10.47 million, translating into a monetised benefit of Rs 1.36 lakh crore per year.
Over a five-year period, and factoring in a 1.5 per cent discount rate, the total benefit is estimated at Rs 6.6 lakh crore, compared to an implementation cost of Rs 14,000 crore. This results in a net well-being gain of Rs 6.46 lakh crore, or a return nearly 45 times the initial investment.
Broader implications
The analysis offers several takeaways for policymakers as stated in the study:
Address core human needs: PMUY tackled fundamental yet often overlooked challenges like time poverty and household air pollution.
Design with people at the center: Empowering women as beneficiaries played a key role in the programme’s success.
Go beyond GDP: The WELLBY framework provides a more holistic view of policy impact, highlighting improvements in quality of life that standard economic indicators may miss.
The findings claim that evaluating social programmes through well-being metrics can offer more meaningful insights into their long-term value, particularly in addressing gender, health, and environmental challenges.
Authored by Radhika Jha, an IAS officer and Secretary to the Government of Uttarakhand, the study was published by the Observer Research Foundation and provides a framework for assessing policy outcomes beyond traditional economic metrics.
Addressing a widespread problem
Prior to PMUY’s launch in 2016, more than 64 per cent of India’s population reportedly lacked access to clean cooking fuel. In rural areas, this figure was even higher. Households primarily relied on firewood, coal, and cow dung cakes- methods that contributed significantly to indoor air pollution and posed severe health risks, especially to women and children. The World Health Organization had equated the indoor pollution exposure of Indian women in such settings to smoking 400 cigarettes an hour.
The use of solid fuels also carried environmental consequences and imposed a heavy time burden on rural women, who spent an average of 374 hours each year collecting firewood. This affected their physical health and limited opportunities for education, employment, and leisure.
The policy impact
PMUY was launched as a social intervention rather than just a subsidy programme. According to Jha's study, key design features included:
- Women-centric implementation: LPG connections were issued in the name of adult women in households, giving them greater control and participation in household energy decisions.
- Financial accessibility: Interest-free loans were offered for stove purchases and the first refill.
- Capacity building: Awareness campaigns educated beneficiaries on the safe use of LPG.
- Rapid execution: The scheme exceeded its target of 80 million connections within three years.
The scheme's impact is increasingly being measured through a “well-being” lens.
Measuring well-being: The WELLBY approach
The analysis uses WELLBYs- Well-being Years- to assess PMUY’s benefits. One WELLBY represents a one-point improvement in life satisfaction for one person over a year, rated on a 0–10 scale. The cost of one WELLBY is estimated at Rs 13,000, adjusted for Indian income levels based on global benchmarks.
The study identifies four key channels through which PMUY improved well-being: health, women’s empowerment, employment, and environmental benefits.
Reported findings
Health Improvements- The shift from solid fuels to LPG has reduced indoor air pollution, lowering the incidence of respiratory illnesses and other health issues. With an estimated 20 million women affected, the health benefits account for 4.4 million WELLBYs annually.
Women empowerment- The time saved from not having to collect firewood allowed many women to pursue education, employment, or community engagement. Assuming 25 per cent of beneficiaries (20 million women) experienced this benefit, this equates to 2.4 million WELLBYs per year.
Employment generation- PMUY helped create an estimated 100,000 direct jobs in LPG distribution and infrastructure. Using life satisfaction coefficients, this contributes 0.07 million WELLBYs annually.
Environmental gains- The use of LPG reduced deforestation and air pollution. With an estimated 180 million people experiencing improved air quality, the environmental benefit is estimated at 3.6 million WELLBYs per year.
Cost-effectiveness analysis- The total annual WELLBYs generated by PMUY are estimated at 10.47 million, translating into a monetised benefit of Rs 1.36 lakh crore per year.
Over a five-year period, and factoring in a 1.5 per cent discount rate, the total benefit is estimated at Rs 6.6 lakh crore, compared to an implementation cost of Rs 14,000 crore. This results in a net well-being gain of Rs 6.46 lakh crore, or a return nearly 45 times the initial investment.
Broader implications
The analysis offers several takeaways for policymakers as stated in the study:
Address core human needs: PMUY tackled fundamental yet often overlooked challenges like time poverty and household air pollution.
Design with people at the center: Empowering women as beneficiaries played a key role in the programme’s success.
Go beyond GDP: The WELLBY framework provides a more holistic view of policy impact, highlighting improvements in quality of life that standard economic indicators may miss.
The findings claim that evaluating social programmes through well-being metrics can offer more meaningful insights into their long-term value, particularly in addressing gender, health, and environmental challenges.
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