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Household Fuel Choice in Urban Ethiopia: A Random Effects Multinomial Logit Analysis

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

Abstract

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

Suggested Citation

  • Alem, Yonas & Beyene, Abebe D. & Kohlin, Gunnar & Mekonnen, Alemu, 2013. "Household Fuel Choice in Urban Ethiopia: A Random Effects Multinomial Logit Analysis," RFF Working Paper Series dp-13-12-efd, Resources for the Future.
    • Handle: RePEc:rff:dpaper:dp-13-12-efd
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    References listed on IDEAS

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    Cited by:

    1. Tembo, Solomon T. & Mulenga, Brian P. & Sitko, Nicholas, 2015. "Cooking Fuel Choice in Urban Zambia: Implications on Forest Cover," Food Security Collaborative Working Papers 202883, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    2. 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.
    3. Demissie, Ashenafi A. & Solomon, A.A., 2016. "Power system sensitivity to extreme hydrological conditions as studied using an integrated reservoir and power system dispatch model, the case of Ethiopia," Applied Energy, Elsevier, vol. 182(C), pages 442-463.
    4. Uche M. Ozughalu & Fidelis O. Ogwumike, 2019. "Extreme Energy Poverty Incidence and Determinants in Nigeria: A Multidimensional Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 142(3), pages 997-1014, April.

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    More about this item

    Keywords

    urban Ethiopia; 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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