Household Fuel Choice in Urban Ethiopia: A Random Effects Multinomial Logit Analysis
AbstractWe use three rounds of a rich panel data set to investigate the determinants of household fuel choice and energy transition in urban Ethiopia. We observe that energy transition did not occur following economic growth in Ethiopia during the past decade. Regression results from a random effects multinomial logit model, which controls for unobserved household heterogeneity, show that households’ economic status, price of alternative energy sources, and education are important determinants of fuel choice in urban Ethiopia. The results also suggest the use of multiple fuels, or “fuel stacking behavior.” We argue that policy makers could target these variables to encourage transition to cleaner energy sources.
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Bibliographic InfoPaper provided by Resources For the Future in its series Discussion Papers with number dp-13-12-efd.
Date of creation: 10 Oct 2013
Date of revision:
urban Ethiopia; energy choice; random effects multinomial logit;
Find related papers by JEL classification:
- C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
- Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
- Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-04-11 (All new papers)
- NEP-DCM-2014-04-11 (Discrete Choice Models)
- NEP-ENE-2014-04-11 (Energy Economics)
- NEP-GER-2014-04-11 (German Papers)
- NEP-RES-2014-04-11 (Resource Economics)
- NEP-URE-2014-04-11 (Urban & Real Estate Economics)
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