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Demand for cooking fuels in a developing country: To what extent do taste and preferences matter?

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  • Akpalu, Wisdom
  • Dasmani, Isaac
  • Aglobitse, Peter B.

Abstract

Overreliance on biomass energy, such as firewood and charcoal, for cooking in developing countries has contributed to high rates of deforestation and resulted in substantial indoor pollution, which has negatively impacted the health of many individuals. However, the effectiveness of public policies aimed at encouraging households to switch to cleaner fuels, such as liquefied petroleum gas (LPG) and kerosene, hinges on the extent to which they are mentally committed to specific fuels. Using data on four cooking fuels (charcoal, firewood, LPG, and kerosene) from the Ghana living standards survey, we found strong evidence that the most preferred fuel is LPG, followed by charcoal, with kerosene the least preferred. In addition, with the exception of kerosene that has price-elastic demand, the price elasticities of demand for the fuel types examined are inelastic. This finding suggests the so-called fuel-ladder is not robust.

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Bibliographic Info

Article provided by Elsevier in its journal Energy Policy.

Volume (Year): 39 (2011)
Issue (Month): 10 (October)
Pages: 6525-6531

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Handle: RePEc:eee:enepol:v:39:y:2011:i:10:p:6525-6531

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Keywords: Demand for fuel Taste and preferences Ghana;

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  1. Campbell, B. M. & Vermeulen, S. J. & Mangono, J. J. & Mabugu, R., 2003. "The energy transition in action: urban domestic fuel choices in a changing Zimbabwe," Energy Policy, Elsevier, vol. 31(6), pages 553-562, May.
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  7. Davis, Mark, 1998. "Rural household energy consumption : The effects of access to electricity--evidence from South Africa," Energy Policy, Elsevier, vol. 26(3), pages 207-217, February.
  8. K. K. Lancaster, 2010. "A New Approach to Consumer Theory," Levine's Working Paper Archive 1385, David K. Levine.
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