Demand for cooking fuels in a developing country. To what extent do taste and preferences matter?
AbstractOverreliance 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 InfoPaper provided by Economic Research Southern Africa in its series Working Papers with number 243.
Length: 14 pages
Date of creation: 2011
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Demand for fuel Taste and preferences Ghana;
Other versions of this item:
- Akpalu, Wisdom & Dasmani, Isaac & Aglobitse, Peter B., 2011. "Demand for cooking fuels in a developing country: To what extent do taste and preferences matter?," Energy Policy, Elsevier, vol. 39(10), pages 6525-6531, October.
- Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
- Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
- Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
- D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-10-01 (All new papers)
- NEP-ARA-2011-10-01 (MENA - Middle East & North Africa)
- NEP-DEV-2011-10-01 (Development)
- NEP-IUE-2011-10-01 (Informal & Underground Economics)
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