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Modelling Household Cooking Fuel Choice: a Panel Multinomial Logit Approach

Author

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  • Alem, Yonas

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Beyene, Abebe D.

    (Environmental Economics Policy Forum, EDRI, Ethiopia)

  • Köhlin, Gunnar

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Mekonnen, Alemu

    (Department of Economics, Addis Ababa University, Ethiopia)

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 emultinomial logit model suggest 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” by households. We argue that policy makers could target these policy levers to encourage transition to cleaner energy sources.

Suggested Citation

  • Alem, Yonas & Beyene, Abebe D. & Köhlin, Gunnar & Mekonnen, Alemu, 2015. "Modelling Household Cooking Fuel Choice: a Panel Multinomial Logit Approach," Working Papers in Economics 632, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0632
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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
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • 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

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