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Modeling household cooking fuel choice: A panel multinomial logit approach

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  • Alem, Yonas
  • Beyene, Abebe D.
  • Köhlin, Gunnar
  • Mekonnen, Alemu

Abstract

We use three rounds of a rich panel data set to investigate the determinants of household cooking fuel choice and energy transition in urban Ethiopia. We observe that the expected energy transition did not occur following economic growth in Ethiopia during the decade 2000–2009. 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 policy levers to encourage transition to cleaner energy sources.

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  • Alem, Yonas & Beyene, Abebe D. & Köhlin, Gunnar & Mekonnen, Alemu, 2016. "Modeling household cooking fuel choice: A panel multinomial logit approach," Energy Economics, Elsevier, vol. 59(C), pages 129-137.
  • Handle: RePEc:eee:eneeco:v:59:y:2016:i:c:p:129-137
    DOI: 10.1016/j.eneco.2016.06.025
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    More about this item

    Keywords

    Ethiopia; Urban; Energy choice; Random effects multinomial logit;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • 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, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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