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Evaluating the relative strength of product-specific factors in fuel switching and stove choice decisions in Ethiopia. A discrete choice model of household preferences for clean cooking alternatives

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  • Takama, Takeshi
  • Tsephel, Stanzin
  • Johnson, Francis X.

Abstract

Switching from conventional stoves to modern clean, safe, and efficient stoves will improve health and social welfare for the 2.7billion people worldwide that lack reliable access to modern energy services. In this paper, we critically review some key theoretical dimensions of household consumer behaviour in switching from traditional biomass cooking stoves to modern efficient stoves and fuels. We then describe the results of empirical research investigating the determinants of stove choice, focusing on the relative strength of product-specific factors across three wealth groups. A stated preference survey and discrete choice model were developed to understand household decision-making associated with cooking stove choice in Addis Ababa, Ethiopia. The study found that, with the exception of price and usage cost factors for the high wealth group, the product-specific factors that were investigated significantly affect stove and fuel choices. The relative strength of factors was assessed in terms of Marginal Willingness to Pay and provides some evidence that consumer preference for higher quality fuels and stoves tends to increase with increasing wealth.

Suggested Citation

  • Takama, Takeshi & Tsephel, Stanzin & Johnson, Francis X., 2012. "Evaluating the relative strength of product-specific factors in fuel switching and stove choice decisions in Ethiopia. A discrete choice model of household preferences for clean cooking alternatives," Energy Economics, Elsevier, vol. 34(6), pages 1763-1773.
  • Handle: RePEc:eee:eneeco:v:34:y:2012:i:6:p:1763-1773
    DOI: 10.1016/j.eneco.2012.07.001
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Vanschoenwinkel, Janka & Lizin, Sebastien & Swinnen, Gilbert & Azadi, Hossein & Van Passel, Steven, 2014. "Solar cooking in Senegalese villages: An application of best–worst scaling," Energy Policy, Elsevier, vol. 67(C), pages 447-458.
    2. Mensah, Justice Tei & Adu, George, 2015. "An empirical analysis of household energy choice in Ghana," Renewable and Sustainable Energy Reviews, Elsevier, vol. 51(C), pages 1402-1411.
    3. van der Kroon, Bianca & Brouwer, Roy & van Beukering, Pieter J.H., 2013. "The energy ladder: Theoretical myth or empirical truth? Results from a meta-analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 20(C), pages 504-513.
    4. Malla, Sunil & Timilsina, Govinda R, 2014. "Household cooking fuel choice and adoption of improved cookstoves in developing countries : a review," Policy Research Working Paper Series 6903, The World Bank.
    5. Arega, Tiruwork & Tadesse, Tewodros, 2017. "Household willingness to pay for green electricity in urban and peri-urban Tigray, northern Ethiopia: Determinants and welfare effects," Energy Policy, Elsevier, vol. 100(C), pages 292-300.
    6. van der Kroon, Bianca & Brouwer, Roy & van Beukering, Pieter J.H., 2014. "The impact of the household decision environment on fuel choice behavior," Energy Economics, Elsevier, vol. 44(C), pages 236-247.

    More about this item

    Keywords

    Clean cooking stove; Discrete choice analysis; Bio-energy; Africa; Ethiopia; Consumer behaviour;

    JEL classification:

    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • I10 - Health, Education, and Welfare - - Health - - - General
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • R22 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other Demand

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