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 Resources For the Future in its series Discussion Papers with number dp-08-18-efd.
Date of creation: 15 Aug 2008
Date of revision:
Household fuel; urban; Ethiopia;
Other versions of this item:
- Mekonnen, Alemu & Köhlin, Gunnar, 2009. "Determinants of Household Fuel Choice in Major Cities in Ethiopia," Working Papers in Economics 399, University of Gothenburg, Department of Economics.
- D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
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- Heltberg, Rasmus, 2005. "Factors determining household fuel choice in Guatemala," Environment and Development Economics, Cambridge University Press, vol. 10(03), pages 337-361, June.
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- Gebreegziabher, Zenebe & Mekonnen, Alemu & Kassie, Menale & Köhlin, Gunnar, 2010. "Urban Energy Transition and Technology Adoption: The Case of Tigrai, Northern Ethiopia," Discussion Papers dp-10-22-efd, Resources For the Future.
- Mensah, Justice T. & Adu, George, 2012. "An Empirical Analysis Of Household Energy Choice In Ghana," Working Paper Series 2013:6, Department Economics, Swedish University of Agricultural Sciences.
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