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«A Dissertation Presented in Partial Fulfillment of the Requirements for the Degree Doctor of Philosophy Approved November 2014 by the Graduate ...»

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HB6-6: When households have many consumer items, migration would be associated with a higher chance of changes in the modes of production HB6-7: When households have many pieces of agricultural equipment, migration would be associated with a lower chance of changes in the modes of production

Financial capital:

HB6-8: When households raise many poultry or livestock, migration would be associated with a lower chance of changes in the modes of production.

Social capital:

HB6-9: When households are within a neighborhood with higher proportion of households participating in non-farm activities, migration would be associated with a higher chance of changes in the modes of production.

Decision Making on Energy Transition. Migration would accelerate the energy transition from traditional energy sources to modern ones. Previous research has showed that enhanced economic status is a prominent factor positively affecting the transition (Farsi et al. 2007; Central Bureau of Statistics 2004; Hosier and Dowd 1987). Hence, in general, the level of urbanization is an important factor at the aggregate level for the transition (Ekholm, Krey, Pachauri, and Riahi 2010). However, other studies have shown that energy transition is about more than economic status and the availability of modern

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household head; and neighborhood-level factors, such as and government investment, accessibility, supply, and price of modern energy are pointed out as the factors significantly influencing the transition (Farsi et al. 2007; Jiang and O’Neill 2004; Masera et al. 2000).

The study of Jiang and O’Neill (2004) in the setting of China emphasizes the importance of household size and education. The results show that: 1) the smaller household size is, the less likely a household uses biomass; 2) if a household is headed by a male with a professional occupation, the household is less likely to use biomass compared to a household with a head who is a farmer. This reflects the fact that the collection of traditional energy sources, such as fuel wood, is mostly done by young household members in developing countries; further, it also implies that experience and knowledge play an important role for the use of modern energy sources. The results also show that the geographic location and conditions have significant influences on the use of traditional energy sources. In other words, accessibility to an energy source is one of the key factors deciding the transition. The study of Farsi et al. (2007) in the setting of urban India agrees with most of these results. Instead of looking at the use and non-use of biomass, however, they directly looked at the transition from firewood to kerosene and liquid petroleum gas (LPG) by adapting the perspective of the energy ladder model. One major difference in the results is the result for household size: the larger household size is, the more likely a household uses a modern energy source, such as LPG.

As discussed previously, the energy transition as well as a growing number of households would obviously increase the demand for modern energy, especially

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household livelihood assisted by migration through social and financial remittances would leave noticeable footprints on natural resources at the household, neighborhood, and global levels (Liu et al. 2009; Kitzes et al 2008). Based on these considerations, hypothesis 3 is derived.

Moderating Factors - Household Capitals. As discussed, human capital, which is comprised of household size and education, has a positive association with energy transition. Having large numbers of household members of working age could provide extra labor to invest in production other than agricultural activities. Thus, it could be associated with a higher chance of migration and other income generating activities in general. Subsequently, a large household size with migration experience would be associated with a higher chance of the transition. On the other hand, having a large number of household members of young age could delay the transition since they do collect most of the traditional energy sources, especially fuel wood, in the setting of developing countries, so it might give a household the idea that it is not necessary yet to transition from traditional energy sources to modern ones.

Education would be positively linked with more use of consumer items, such as home appliances, that requires a consistent supply of electricity (Farsi et al. 2007;

Heltberg 2004). In addition, a higher level of education would make a household more acceptable to new ideas and information. This could also be supported by migration experience with social remittances, and consequently, migration would strengthen the positive association between education and energy transition. In addition, due to the

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certain degree when the level of education of a household is low.

Natural capital would be also associated with energy transition. If a household possess a positive natural capital, for example, having a positive environmental perception and good land (khet land) for farming, the household might be willing to keep using traditional energy sources as long as possible and use the remittances from migration for other activities. In the opposite scenario, having a negative environmental perception and poorer quality land (bari land) for farming, a household with migrants would be willing to use their resources for the purchase of modern energy sources since they would expect less collection of traditional energy sources in the near future.





Physical capital would be associated with energy transition. Having many consumer items would be positively associated with energy transition. To operate all the modern appliances, such as television, radio, etc., electricity is a necessary condition.

And migration experiences would boost this pattern: because migrants are more likely to work in developed regions or countries rather than less developed areas, it is likely that they are already used to the convenience of modern energy sources; in addition, migrants are more likely to be ready to accept new ideas or information in general after they return due to their experience at their migration destinations. And yet, having many pieces of agricultural equipment would have a negative association with energy transition. It would reflect the fact that a household invested a substantial amount of resources in agricultural activities and is willing to continue doing so in the future. Investment in agricultural activities indicates better accessibility to and supply of traditional energy sources. In other words, it would be easier for a household to collect traditional energy sources than a

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resources from migration would be used for other non-farm or off-farm activities rather than agricultural activities. And the effects of migration and agricultural equipment might cancel each other out.

Financial capital affects energy transition as well. Although financial capital in the form of cash would be positively associated with the transition as previous studies have found, financial capital in the form of livestock and poultry might have different impacts since they can be categorized as agricultural assets. As discussed before in the case of natural and physical capitals, having many livestock and poultry could indicate agriculture-friendly nature of a household. Therefore, being rich in financial capital in the forms of livestock and poultry might delay the transition. However, in fact, they can be easily liquidated into cash in the setting of developing countries, so financial capital might have a positive relationship with energy transition.

Last, social capital would be also associated with energy transition. In the context that a high proportion of households in the same neighborhood use modern energy sources, they would share the pros and cons of using them. And as a result, social and financial remittances from migration would boost this transition. In the context that a low proportion of households in the same neighborhood use modern energy sources, on the contrary, they would be reluctant to transition from traditional ones to modern ones and use the resources for other activities. Consequently, migration in this case would be negatively associated with the transition. Based on these considerations, one main hypotheses and following sub-hypotheses are derived.

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variable: the transition from traditional energy sources to modern energy sources.

Household capitals:

HC1: Households rich in human capital are associated with the transition to modern

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HC1a: Households with many household members of young age are negatively associated with the transition to modern energy sources.

HC1b: Households with many household members of working age are positively associated with the transition to modern energy sources.

HC1c: Households with high education are positively associated with the transition

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HC2: Households rich in natural capital are negatively associated with the transition to modern energy sources.

HC3: Households rich in physical capital are associated with the transition to modern

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HC3b: Households possessing more pieces of agricultural equipment are associated with a lower chance of the transition to modern energy sources.

HC4: Household rich in financial capital are positively associated with the transition to modern energy sources.

HC5: Household rich in social capital are positively associated with the transition to modern energy sources.

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depend on the capitals available to the households. In other words, the effect of migration is shaped by household capitals: human, natural, physical, financial and social capitals.

Human capital:

HC6-1: When households have more household members of young age, migration would be associated with a lower chance of the transition to modern energy sources.

HC6-2: When households have more household members of working age, migration would be associated with a higher chance of the transition to modern energy

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HC6-3: When households have more education, migration would be associated with a higher chance of the transition to modern energy sources.

Natural capital:

HC6-4: When households have better environmental perceptions or more productive and valued farmland (khet land), migration would be associated with a lower chance of the transition to modern energy sources.

Physical capital:

HC6-5: When households possess more consumer items, migration would be associated with a higher chance of the transition to modern energy sources.

HC6-6: When households possess more pieces of agricultural equipment, migration would be associated with a lower chance of the transition to modern energy

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with a lower chance of the transition to modern energy sources.

Social capital:

HC6-8: When households are within a neighborhood with higher proportion of households using modern energy sources, migration would be associated with a higher chance of the transition to modern energy sources.

Further considerations for migration. The event of migration that is hypothesized to affect agricultural and energy transitions constantly interacts with the livelihoods of rural households in Chitwan, Nepal. Thus, the characteristics of migration would affect their livelihood differently in terms of the magnitude of financial support, new experience, values and knowledge. One of the major factors that would characterize migration is the type of migration: if a migration is domestic or international. In general, the magnitude is stronger in cases of international migration since migrants usually spend longer duration in destinations when the move is to other countries. There might be two reasons for this: the characteristics of the jobs they serve in destinations and the amount of financial investment they spent to migrate in the case of international migration compared to domestic migration.

According to Thieme and Wyss (2005), two main characteristics of international migration in Western Nepal are long-term and repetitive. Based upon the survey in the area of Sainik Basti, Western Nepal in 2002, they found that the duration of international migration is more than twelve months on average and returned migrants often emigrate again domestically or internationally. The main reason of repetitive migration is due to

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they serve: for example, if a migrant serves as a soldier in India, he stays between fifteen and twenty years; in the case of migration to the Gulf countries as a construction worker, he stays between two to four years. In addition to the types of jobs in destinations, poverty also adds one more layer to this complexity of migration, especially in developing countries (de Haan 1999). Due to the low socioeconomic status of most rural households, many migrants would have debt before and after the time of migration. They also might have borrowed some money to migrate, and it becomes the additional debt they need to pay fully sooner or later (Connel and Conway 2000). If the amount of debt is big, people would not be able to deviate from just paying the debt until some point of time. Despite the financial burden for international migration, successful migration brings much better financial support than domestic migration. According to the Nepal Living Standards Survey 2004, the mean value of remittances from internal migrants was 13,698 NRs (about $138) while the one from international migrants was 63,627 NRs (about $643). In some cases, migrants bring money back with them when they return (Thieme and Wyss 2005), so the effect of migration might initiate after they come back, not when they leave. And in many cases, a remaining household can survive while the migrants are away because they would take loans from neighbors or relatives until the migrants come back and repay it then (Thieme and Wyss 2005).



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