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Fuel choices in urban Indian households

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  • FARSI, MEHDI
  • FILIPPINI, MASSIMO
  • PACHAURI, SHONALI

Abstract

This paper applies an ordered discrete choice framework to model fuel choices and patterns of cooking fuel use in urban Indian households. The choices considered are for three main cooking fuels: firewood, kerosene, and LPG (liquid petroleum gas). The models, estimated using a large microeconomic dataset, show a reasonably good performance in the prediction of households’ primary and secondary fuel choices. This suggests that ordered models can be used to analyze multiple fuel use patterns in the Indian context. The results show that lack of sufficient income is one of the main factors that retard households from using cleaner fuels, which usually also require the purchase of relatively expensive equipments. The results also indicate that households are sensitive to LPG prices. In addition to income and price, several socio-demographic factors such as education and sex of the head of the household are also found to be important in determining household fuel choice.

Suggested Citation

  • Farsi, Mehdi & Filippini, Massimo & Pachauri, Shonali, 2007. "Fuel choices in urban Indian households," Environment and Development Economics, Cambridge University Press, vol. 12(06), pages 757-774, December.
  • Handle: RePEc:cup:endeec:v:12:y:2007:i:06:p:757-774_00
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    1. Masera, Omar R. & Saatkamp, Barbara D. & Kammen, Daniel M., 2000. "From Linear Fuel Switching to Multiple Cooking Strategies: A Critique and Alternative to the Energy Ladder Model," World Development, Elsevier, vol. 28(12), pages 2083-2103, December.
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    4. Alam, Manzoor & Sathaye, Jayant & Barnes, Doug, 1998. "Urban household energy use in India: efficiency and policy implications," Energy Policy, Elsevier, vol. 26(11), pages 885-891, September.
    5. Reddy, B. Sudhakara, 2003. "Overcoming the energy efficiency gap in India's household sector," Energy Policy, Elsevier, vol. 31(11), pages 1117-1127, September.
    6. Davis, Mark, 1998. "Rural household energy consumption : The effects of access to electricity--evidence from South Africa," Energy Policy, Elsevier, vol. 26(3), pages 207-217, February.
    7. Pachauri, S. & Mueller, A. & Kemmler, A. & Spreng, D., 2004. "On Measuring Energy Poverty in Indian Households," World Development, Elsevier, vol. 32(12), pages 2083-2104, December.
    8. Reddy, Amulya K.N. & Reddy, B.Sudhakara, 1994. "Substitution of energy carriers for cooking in Bangalore," Energy, Elsevier, vol. 19(5), pages 561-571.
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