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A structural model of cooking fuel choices in developing countries

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  • Poblete-Cazenave, Miguel
  • Pachauri, Shonali

Abstract

Access to cleaning cooking fuels and stoves is an important indicator of well-being, as this enables several improvements in quality of life. In many developing countries, a big proportion of the population still depends on biomass for cooking, and the adoption of clean cooking fuels is still limited. Here, we propose a structural model to estimate household demand and choices for cooking fuel using micro-datasets from nationally representative surveys for a subset of developing countries. We test the model by estimating the demand response to simulated changes in fuel prices and income. We find that the model provides a close approximation to the observed patterns in the data from the surveys. We also find that as long as incomes rise and the relative difference between the prices of biomass and cleaner fuels decreases, households will transition to cleaner cooking fuels. We discuss potential applications of the method for constructing and analyzing future scenarios of cooking energy transitions.

Suggested Citation

  • Poblete-Cazenave, Miguel & Pachauri, Shonali, 2018. "A structural model of cooking fuel choices in developing countries," Energy Economics, Elsevier, vol. 75(C), pages 449-463.
    • Handle: RePEc:eee:eneeco:v:75:y:2018:i:c:p:449-463
    DOI: 10.1016/j.eneco.2018.09.003
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    References listed on IDEAS

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    Cited by:

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    More about this item

    Keywords

    Household energy consumption; Energy access;

    JEL classification:

    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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