Measuring the Affordability of Key Food and Energy Commodities in Pakistan: An Application of Simon Abundance Framework

Abstract

This study applies the Simon Abundance Framework (SAF) to assess food and energy resource affordability in Pakistan from 2007 to 2021. Developed by Tupy and Pooley (2022), the SAF uses the concept of time price, which shows the number of working hours required to purchase a good or service. It serves as an alternative measure of resource affordability, incorporating both prices and the efforts required by labour. By evaluating changes in time prices across 22 essential food and energy items for male and female workers of low and high-skilled categories, the study finds a broad based improvement in affordability of these items in terms of time price. The findings support the argument made by Julian Simon that human efforts to innovate and find new alternatives can counteract resource scarcity despite population pressure.