Advanced Search
MyIDEAS: Login

Estimation of elasticities for domestic energy demand in Mozambique

Contents:

Author Info

  • Arthur, Maria de Fátima S.R.
  • Bond, Craig A.
  • Willson, Bryan
Registered author(s):

    Abstract

    In Mozambique, households consume a mix of energy sources to satisfy their needs for lighting and cooking and, for wealthier households, other domestic necessities such as refrigeration. The domestic energy mix depends on the prices of the sources and on the capability of the household to invest in the energy-consuming appliances required to satisfy those needs. Based on data from a household survey carried out in Mozambique during 2002/3 (IAF), this paper calculates the price and the income elasticities of demand for domestic energy, using an econometric method developed by Deaton. The calculations are made for all households at the national level, differentiating for urban and rural households, and for the northern households of Mozambique. In the econometric formulation, proxies for the ownership of energy appliances per household are used, allowing a simple evaluation of the effects of asset ownership on the demand for energy. Own- and cross-price elasticities for five individual domestic sources are obtained: low-grade sources such as firewood and charcoal are less elastic (elasticities of −0.41 and −0.28 respectively) than candles, kerosene and electricity (respectively −0.88, −0.79 and −0.60).Income elasticities are respectively 0.45, 0.32, 0.93, 0.84 and 0.69, placing firewood and charcoal as the less responsive to income variations and candles and kerosene as the most responsive. We also comment on the factors influencing domestic energy transition.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.sciencedirect.com/science/article/pii/S0140988311001666
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Elsevier in its journal Energy Economics.

    Volume (Year): 34 (2012)
    Issue (Month): 2 ()
    Pages: 398-409

    as in new window
    Handle: RePEc:eee:eneeco:v:34:y:2012:i:2:p:398-409

    Contact details of provider:
    Web page: http://www.elsevier.com/locate/eneco

    Related research

    Keywords: Price elasticities; Income elasticities; Domestic energy; Households;

    Find related papers by JEL classification:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Susan Olivia & John Gibson, 2006. "Household Energy Demand and the Equity and Efficiency Aspects of Subsidy Reform in Indonesia," Working Papers in Economics 06/06, University of Waikato, Department of Economics.
    2. van Horen, Clive & Eberhard, Anton & Trollip, Hilton & Thorne, Stephen, 1993. "Energy, environment and urban poverty in South Africa," Energy Policy, Elsevier, vol. 21(5), pages 623-639, May.
    3. Frank Ellis, 1998. "Household strategies and rural livelihood diversification," Journal of Development Studies, Taylor & Francis Journals, vol. 35(1), pages 1-38.
    4. Madubansi, M. & Shackleton, C.M., 2006. "Changing energy profiles and consumption patterns following electrification in five rural villages, South Africa," Energy Policy, Elsevier, vol. 34(18), pages 4081-4092, December.
    5. Masera, Omar R. & Saatkamp, Barbara D. & Kammen, Daniel M., 2000. "From Linear Fuel Switching to Multiple Cooking Strategies: A Critique and Alternative to the Energy Ladder Model," World Development, Elsevier, vol. 28(12), pages 2083-2103, December.
    6. Hosier, Richard H. & Dowd, Jeffrey, 1987. "Household fuel choice in Zimbabwe : An empirical test of the energy ladder hypothesis," Resources and Energy, Elsevier, vol. 9(4), pages 347-361, December.
    7. Hughes-Cromwick, Ellen L., 1985. "Nairobi households and their energy use : An economic analysis of consumption patterns," Energy Economics, Elsevier, vol. 7(4), pages 265-278, October.
    8. Pachauri, S. & Mueller, A. & Kemmler, A. & Spreng, D., 2004. "On Measuring Energy Poverty in Indian Households," World Development, Elsevier, vol. 32(12), pages 2083-2104, December.
    9. Deaton, Angus, 1987. "Estimation of own- and cross-price elasticities from household survey data," Journal of Econometrics, Elsevier, vol. 36(1-2), pages 7-30.
    10. Filippini, Massimo & Pachauri, Shonali, 2004. "Elasticities of electricity demand in urban Indian households," Energy Policy, Elsevier, vol. 32(3), pages 429-436, February.
    11. Koshala, Rajindar K. & Koshal, Manjulika & Boyd, Roy G. & Rachmany, Hasan, 1999. "Demand for kerosene in developing countries: A case of Indonesia," Journal of Asian Economics, Elsevier, vol. 10(2), pages 329-336.
    12. Deaton, A., 1988. "Price Elasticities From Survey Data: Extensions And Indonesian Results," Papers 138, Princeton, Woodrow Wilson School - Development Studies.
    13. Kebede, Bereket & Bekele, Almaz & Kedir, Elias, 2002. "Can the urban poor afford modern energy? The case of Ethiopia," Energy Policy, Elsevier, vol. 30(11-12), pages 1029-1045, September.
    14. Abbi Mamo Kedir, 2005. "Estimation of Own- and Cross-price Elasticities using Unit Values: Econometric Issues and Evidence from Urban Ethiopia," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 14(1), pages 1-20, March.
    15. Arthur, Maria de Fatima S.R. & Zahran, Sammy & Bucini, Gabriela, 2010. "On the adoption of electricity as a domestic source by Mozambican households," Energy Policy, Elsevier, vol. 38(11), pages 7235-7249, November.
    16. Kadian, Rashmi & Dahiya, R.P. & Garg, H.P., 2007. "Energy-related emissions and mitigation opportunities from the household sector in Delhi," Energy Policy, Elsevier, vol. 35(12), pages 6195-6211, December.
    17. Gupta, Gautam & Kohlin, Gunnar, 2006. "Preferences for domestic fuel: Analysis with socio-economic factors and rankings in Kolkata, India," Ecological Economics, Elsevier, vol. 57(1), pages 107-121, April.
    18. Deaton, A., 1988. "Quality, Quantity, And Spatial Variation Of Price," Papers 30, World Bank - Living Standards Measurement.
    19. Louw, Kate & Conradie, Beatrice & Howells, Mark & Dekenah, Marcus, 2008. "Determinants of electricity demand for newly electrified low-income African households," Energy Policy, Elsevier, vol. 36(8), pages 2814-2820, August.
    20. Abdulai, Awudu & CroleRees, Anna, 2001. "Determinants of income diversification amongst rural households in Southern Mali," Food Policy, Elsevier, vol. 26(4), pages 437-452, August.
    21. Howells, M. I. & Alfstad, T. & Victor, D. G. & Goldstein, G. & Remme, U., 2005. "A model of household energy services in a low-income rural African village," Energy Policy, Elsevier, vol. 33(14), pages 1833-1851, September.
    22. Abdel-Khalek, Gouda, 1988. "Income and price elasticities of energy consumption in Egypt : A time-series analysis," Energy Economics, Elsevier, vol. 10(1), pages 47-58, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Espinosa Acuña, Óscar A. & Vaca González, Paola A. & Avila Forero, Raúl A., 2013. "Elasticidades de demanda por electricidad e impactos macroecon_omicos del precio de la energía eléctrica en Colombia || Elasticity of Electricity Demand and Macroeconomics Impacts of Electricity Pri," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 16(1), pages 216-249, December.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:34:y:2012:i:2:p:398-409. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.