Household energy demand in Kenya: An application of the linear approximate almost ideal demand system (LA-AIDS)
This paper estimates price and fuel expenditure elasticities of demand by applying the linear Approximate Almost Ideal Demand system (LA-AIDS) to 3665 households sampled across Kenya in 2009. The results indicate that motor spirit premium (MSP), automotive gas oil (AGO) and lubricants are price elastic while fuel wood, kerosene, charcoal, liquefied petroleum gas (LPG) and electricity are price inelastic. Kerosene is income elastic while fuel wood, charcoal, LPG, electricity, MSP and AGO are income inelastic. The results also reveal fuel stack behaviour, that is, multiple fuel use among the households. Main policy implications of the results include increasing the penetration of alternative fuels as well as provision of more fiscal incentives to increase usage of cleaner fuels. This not withstanding however, the household income should be increased beyond a certain point for the household to completely shift and use a new fuel.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Rasmus Heltberg & Thomas Channing Arndt & Nagothu Udaya Sekhar, 2000. "Fuelwood Consumption and Forest Degradation: A Household Model for Domestic Energy Substitution in Rural India," Land Economics, University of Wisconsin Press, vol. 76(2), pages 213-232.
- Sterner, Thomas, 2007. "Fuel taxes: An important instrument for climate policy," Energy Policy, Elsevier, vol. 35(6), pages 3194-3202, June.
- John Muellbauer, 1975. "Aggregation, Income Distribution and Consumer Demand," Review of Economic Studies, Oxford University Press, vol. 42(4), pages 525-543.
- Hughes-Cromwick, Ellen L., 1985. "Nairobi households and their energy use : An economic analysis of consumption patterns," Energy Economics, Elsevier, vol. 7(4), pages 265-278, October.
- Heien, Dale & Wessells, Cathy Roheim, 1990. "Demand Systems Estimation with Microdata: A Censored Regression Approach," Journal of Business & Economic Statistics, American Statistical Association, vol. 8(3), pages 365-71, July.
- Lester C Hunt & Claudio Salgado & Andy Thorpe, 1998. "The Policy of Power and the Power of Policy: Energy Policy in Honduras," Surrey Energy Economics Centre (SEEC), School of Economics Discussion Papers (SEEDS) 96, Surrey Energy Economics Centre (SEEC), School of Economics, University of Surrey.
- Muellbauer, John, 1976. "Community Preferences and the Representative Consumer," Econometrica, Econometric Society, vol. 44(5), pages 979-99, September.
- Paul Brenton, 1997.
"Estimates of the demand for energy using cross-country consumption data,"
Taylor & Francis Journals, vol. 29(7), pages 851-859.
- Brenton, P., 1995. "Estimates of the Demand for Energy Using Cross-Country Consumption Data," Discussion Papers 95-25, Department of Economics, University of Birmingham.
- Hosier, Richard H. & Dowd, Jeffrey, 1987. "Household fuel choice in Zimbabwe : An empirical test of the energy ladder hypothesis," Resources and Energy, Elsevier, vol. 9(4), pages 347-361, December.
- Susan Olivia & John Gibson, 2008.
"Household Energy Demand and the Equity and Efficiency Aspects of Subsidy Reform in Indonesia,"
The Energy Journal,
International Association for Energy Economics, vol. 0(Number 1), pages 21-40.
- Olivia, Susan & Gibson, John, 2006. "Household Energy Demand and the Equity and Efficiency Aspects of Subsidy Reform in Indonesia," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25745, International Association of Agricultural Economists.
- Susan Olivia & John Gibson, 2006. "Household Energy Demand and the Equity and Efficiency Aspects of Subsidy Reform in Indonesia," Working Papers in Economics 06/06, University of Waikato, Department of Economics.
- Athukorala, P.P.A Wasantha & Wilson, Clevo, 2010.
"Estimating short and long-term residential demand for electricity: New evidence from Sri Lanka,"
Elsevier, vol. 32(Supplemen), pages S34-S40, September.
- Wasantha Athukorala & Clevo Wilson, 2010. "Estimating short and long-term residential demand for electricity: New evidence from Sri Lanka," School of Economics and Finance Discussion Papers and Working Papers Series 254, School of Economics and Finance, Queensland University of Technology.
- Jonathan E. Hughes & Christopher R. Knittel & Daniel Sperling, 2008.
"Evidence of a Shift in the Short-Run Price Elasticity of Gasoline Demand,"
The Energy Journal,
International Association for Energy Economics, vol. 29(1), pages 113-134.
- Christopher Knittel & Daniel Sperling, 2006. "Evidence of a Shift in the Short-Run Price Elasticity of Gasoline Demand," Working Papers 625, University of California, Davis, Department of Economics.
- Jonathan E. Hughes & Christopher R. Knittel & Daniel Sperling, 2006. "Evidence of a Shift in the Short-Run Price Elasticity of Gasoline Demand," NBER Working Papers 12530, National Bureau of Economic Research, Inc.
- 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.
- Kidane, Asmerom, 1991. "Demand for energy in rural and urban centres of Ethiopia : An econometric analysis," Energy Economics, Elsevier, vol. 13(2), pages 130-134, April.
- Haripriya Gundimeda & Gunnar KÃƒÂ¶hlin, 2006. "Fuel Demand Elasticities for Energy and Environmental Policies Indian Sample Survey Evidence," Energy Working Papers 22501, East Asian Bureau of Economic Research.
- Angulo, Ana Maria & Gil, Jose Maria & Gracia, Azucena, 2001. "The demand for alcoholic beverages in Spain," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 26(1), October.
- Rajmohan, K. & Weerahewa, J., 2007. "Household Energy Consumption Patterns in Sri Lanka," Sri Lankan Journal of Agricultural Economics, Sri Lanka Agricultural Economics Association (SAEA), vol. 9.
- Gebreegziabher, Zenebe & Oskam, Arie J. & Bayou, Demeke, 2010. "Urban Fuel Demand in Ethiopia: An Almost-Ideal Demand System Approach," Discussion Papers dp-10-20-efd, Resources For the Future.
- Iootty, Mariana & Pinto Jr., Helder & Ebeling, Francisco, 2009. "Automotive fuel consumption in Brazil: Applying static and dynamic systems of demand equations," Energy Policy, Elsevier, vol. 37(12), pages 5326-5333, December.
- Ramanathan, R., 1999. "Short- and long-run elasticities of gasoline demand in India: An empirical analysis using cointegration techniques," Energy Economics, Elsevier, vol. 21(4), pages 321-330, August.
- Blundell, Richard, 1988. "Consumer Behaviour: Theory and Empirical Evidence--a Survey," Economic Journal, Royal Economic Society, vol. 98(389), pages 16-65, March.
- Naeem Ur Rehman, Khattak & Tariq, Muhammad & Khan, Jangraiz, 2010. "Determinants of Household’s Demand for Electricity in District Peshawar," MPRA Paper 56007, University Library of Munich, Germany, revised 2010.
- repec:spr:pharme:v:22:y:2004:i:4:p:225-244 is not listed on IDEAS
- Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
- Arnold, J.E. Michael & Kohlin, Gunnar & Persson, Reidar, 2006. "Woodfuels, livelihoods, and policy interventions: Changing Perspectives," World Development, Elsevier, vol. 34(3), pages 596-611, March.
- Ibrahim, Ibrahim B. & Hurst, Christopher, 1990. "Estimating energy and oil demand functions : A study of thirteen developing countries," Energy Economics, Elsevier, vol. 12(2), pages 93-102, April.
- de Freitas, Luciano Charlita & Kaneko, Shinji, 2011. "Ethanol demand in Brazil: Regional approach," Energy Policy, Elsevier, vol. 39(5), pages 2289-2298, May.
- Baker, Paul & Blundell, Richard & Micklewright, John, 1989. "Modelling Household Energy Expenditures Using Micro-data," Economic Journal, Royal Economic Society, vol. 99(397), pages 720-38, September.
- Israel, Debra, 2002. "Fuel Choice in Developing Countries: Evidence from Bolivia," Economic Development and Cultural Change, University of Chicago Press, vol. 50(4), pages 865-90, July.
- Angulo, Ana Maria & Gil, Jose Maria & Gracia, Azucena, 2001. "The demand for alcoholic beverages in Spain," Agricultural Economics, Blackwell, vol. 26(1), pages 71-83, October.
When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:39:y:2011:i:11:p:7084-7094. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.