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Modeling household cooking fuel choice: A panel multinomial logit approach

Journal article
Authors Yonas Alem
A. D. Beyene
Gunnar Köhlin
A. Mekonnen
Published in Energy Economics
Volume 59
Pages 129-137
ISSN 0140-9883
Publication year 2016
Published at Department of Economics
Pages 129-137
Language en
Links dx.doi.org/10.1016/j.eneco.2016.06....
Keywords Energy choice, Ethiopia, Random effects multinomial logit, Urban
Subject categories Energy Systems, Economics

Abstract

We use three rounds of a rich panel data set to investigate the determinants of household cooking fuel choice and energy transition in urban Ethiopia. We observe that the expected energy transition did not occur following economic growth in Ethiopia during the decade 2000–2009. Regression results from a random effects multinomial logit model, which controls for unobserved household heterogeneity, show that households' economic status, price of alternative energy sources, and education are important determinants of fuel choice in urban Ethiopia. The results also suggest the use of multiple fuels, or ‘fuel stacking behavior’. We argue that policy makers could target these policy levers to encourage transition to cleaner energy sources. © 2016 Elsevier B.V.

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