Demand for energy among households in Ijebu Division, Ogun State, Nigeria

This study examines the influence of households socio-economic characteristics on household demand for electricity, petrol, diesel, kerosene, firewood, domestic gas, and transport in commercial vehicles. Primary data obtained in a cross-section survey of 90 households selected across six communities in Ijebu-Division of Ogun State, Nigeria was used in estimating a system of energy demand equations and elasticities. The study reveals that an average household in the sample had about five members, headed by a 52 year old male that had about nine years of formal education. The mean monthly household consumption expenditure was N 15,458.63, of which about 25% was expended on the seven commodities. While the influence of education and household size on household energy use were insignificant; income (budget size), household ownership of electrical/electronic appliances and automobiles, as well as age of household heads exercised significant influence on the relative shares of some/all of the seven energy commodities in household budgets in the study area. The income effects were positive for all the energy commodities, except firewood. Demand for petrol, diesel and domestic gas were income elastic. Thus, the study concludes that improvement in income would cause increase in demand for electricity and petroleum products in the study area, but worsening real income would place greater demand on biomass fuel.