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Household Cooking Fuel Choice in India, 2004-2012: A Panel Multinomial Analysis

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  • Kuo, Ying-Min

    (Oklahoma State University)

  • Azam, Mehtabul

    (Oklahoma State University)

Abstract

We use two waves of nationally representative India Human Development Survey to examine factors driving the cooking fuel choice in urban and rural India, separately. We utilize a random effects multinomial logit model that controls for unobserved household heterogeneity. We find that a clean-break with the use of traditional fuels is less likely in rural areas, but more probable in urban areas. The household characteristics (e.g. income, education) that are positively correlated with use of clean fuel also increases the probability of fuel stacking for rural households. We also find that access to paved road is an important determinant for rural household adopting clean fuel, and there exists evidence of social spillover effects in rural areas. Moreover, the bargaining power of women that is associated with economic status (e.g. education or economic freedom) is positively associated with the use of clean fuel. Finally, we find considerable impact of liquefied petroleum gas prices on the probability of use of clean fuel for urban households, but no significant impact for rural households.

Suggested Citation

  • Kuo, Ying-Min & Azam, Mehtabul, 2019. "Household Cooking Fuel Choice in India, 2004-2012: A Panel Multinomial Analysis," IZA Discussion Papers 12682, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp12682
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    References listed on IDEAS

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    Cited by:

    1. Basu, Arnab K. & Byambasuren, Tsenguunjav & Chau, Nancy H. & Khanna, Neha, 2020. "Cooking Fuel Choice, Indoor Air Quality and Child Mortality in India," GLO Discussion Paper Series 560, Global Labor Organization (GLO).
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    3. Utkarsh Patel & Deepak Kumar, 2020. "The Indian Energy Divide: Dissecting inequalities in the energy transition towards LPG," Indian Council for Research on International Economic Relations (ICRIER) Working Paper 401, Indian Council for Research on International Economic Relations (ICRIER), New Delhi, India.

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    More about this item

    Keywords

    fuel choice; fuel stacking; random eects multinomial logit; India;
    All these keywords.

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q35 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Hydrocarbon Resources
    • 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
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities

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