Determinants of Household Fuel Choice in Major Cities in Ethiopia
AbstractThis paper looks at the fuel choice of urban households in major Ethiopian cities, using panel data collected in 2000 and 2004. It examines use of multiple fuels by households in some detail, a topic not much explored in the household fuel-choice literature in general, and in sub-Saharan Africa in particular. The results suggest that as households’ total expenditures rise, they increase the number of fuels used, even in urban areas, and they also spend more on the fuels they consume (including charcoal but not wood). The results also show that even fuel types such as wood are not inferior goods. The results support more recent arguments in the literature (using Latin American and Asian data) that multiple fuel use (fuel stacking) better describes fuel-choice behavior of households in developing countries, as opposed to the idea that households switch (completely) to other (more expensive but cleaner) fuels as their incomes rise. This study shows the relevance of fuel stacking (multiple fuel use) in urban areas in sub-Saharan Africa. While income is an important variable, the results of this study suggest the need to consider other variables such as cooking and consumption habits, dependability of supply, cost, and household preferences and tastes to explain household fuel choice, as well as to recommend policies that address issues associated with household energy use.
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Bibliographic InfoPaper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 399.
Length: 22 pages
Date of creation: 30 Nov 2009
Date of revision:
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Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
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Household fuel; urban; Ethiopia;
Other versions of this item:
- Mekonnen, Alemu & Köhlin, Gunnar, 2008. "Determinants of Household Fuel Choice in Major Cities in Ethiopia," Discussion Papers dp-08-18-efd, Resources For the Future.
- D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-12-11 (All new papers)
- NEP-ENE-2009-12-11 (Energy Economics)
- NEP-RES-2009-12-11 (Resource Economics)
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.:
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dp-10-22-efd, Resources For the Future.
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