IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v34y2012i6p1763-1773.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140988312001375
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.eneco.2012.07.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kirk R. Smith, 2003. "Indoor Air Pollution," World Bank Publications - Reports 9723, The World Bank Group.
    2. Barnes, Douglas F, et al, 1993. "The Design and Diffusion of Improved Cooking Stoves," The World Bank Research Observer, World Bank, vol. 8(2), pages 119-141, July.
    3. Narasimha Rao, M. & Reddy, B. Sudhakara, 2007. "Variations in energy use by Indian households: An analysis of micro level data," Energy, Elsevier, vol. 32(2), pages 143-153.
    4. Takama, Takeshi & Preston, John, 2008. "Forecasting the effects of road user charge by stochastic agent-based modelling," Transportation Research Part A: Policy and Practice, Elsevier, vol. 42(4), pages 738-749, May.
    5. Bill Provencher & Rebecca Moore, 2006. "A Discussion of “Using Angler Characteristics and Attitudinal Data to Identify Environmental Preference Classes: A Latent-Class Model”," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 34(1), pages 117-124, May.
    6. F Alpizar & F Carlsson & P Martinsson, 2003. "Using Choice Experiments for Non-Market Valuation," Economic Issues Journal Articles, Economic Issues, vol. 8(1), pages 83-110, March.
    7. Ouedraogo, Boukary, 2006. "Household energy preferences for cooking in urban Ouagadougou, Burkina Faso," Energy Policy, Elsevier, vol. 34(18), pages 3787-3795, December.
    8. 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.
    9. Hiemstra-van der Horst, Greg & Hovorka, Alice J., 2008. "Reassessing the "energy ladder": Household energy use in Maun, Botswana," Energy Policy, Elsevier, vol. 36(9), pages 3333-3344, September.
    10. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D. With contributions by-Name:Adamowicz,Wiktor, 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, number 9780521788304, October.
    11. Dan Rigby & Kelvin Balcombe & Michael Burton, 2009. "Mixed Logit Model Performance and Distributional Assumptions: Preferences and GM foods," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 42(3), pages 279-295, March.
    12. Dewees, Peter A., 1989. "The woodfuel crisis reconsidered: Observations on the dynamics of abundance and scarcity," World Development, Elsevier, vol. 17(8), pages 1159-1172, August.
    13. 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.
    14. Fisher, Monica, 2004. "Household welfare and forest dependence in Southern Malawi," Environment and Development Economics, Cambridge University Press, vol. 9(2), pages 135-154, May.
    15. Grieshop, Andrew P. & Marshall, Julian D. & Kandlikar, Milind, 2011. "Health and climate benefits of cookstove replacement options," Energy Policy, Elsevier, vol. 39(12), pages 7530-7542.
    16. Gupta, Gautam & Kohlin, Gunnar, 2006. "Preferences for domestic fuel: Analysis with socio-economic factors and rankings in Kolkata, India," Ecological Economics, Elsevier, vol. 57(1), pages 107-121, April.
    17. Heltberg, Rasmus, 2005. "Factors determining household fuel choice in Guatemala," Environment and Development Economics, Cambridge University Press, vol. 10(3), pages 337-361, June.
    18. Kebede, Bereket & Bekele, Almaz & Kedir, Elias, 2002. "Can the urban poor afford modern energy? The case of Ethiopia," Energy Policy, Elsevier, vol. 30(11-12), pages 1029-1045, September.
    19. Campbell, B. M. & Vermeulen, S. J. & Mangono, J. J. & Mabugu, R., 2003. "The energy transition in action: urban domestic fuel choices in a changing Zimbabwe," Energy Policy, Elsevier, vol. 31(6), pages 553-562, May.
    20. Atkinson, Scott E & Halvorsen, Robert, 1990. "The Valuation of Risks to Life: Evidence from the Market for Automobiles," The Review of Economics and Statistics, MIT Press, vol. 72(1), pages 133-136, February.
    21. Karekezi, Stephen & Majoro, Lugard, 2002. "Improving modern energy services for Africa's urban poor," Energy Policy, Elsevier, vol. 30(11-12), pages 1015-1028, September.
    22. 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.
    23. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    24. Pachauri, Shonali & Jiang, Leiwen, 2008. "The household energy transition in India and China," Energy Policy, Elsevier, vol. 36(11), pages 4022-4035, November.
    25. Soussan, John & O'Keefe, Phil & Munslow, Barry, 1990. "Urban fuelwood challenges and dilemmas," Energy Policy, Elsevier, vol. 18(6), pages 572-582.
    26. Heltberg, Rasmus, 2004. "Fuel switching: evidence from eight developing countries," Energy Economics, Elsevier, vol. 26(5), pages 869-887, September.
    27. Leach, Gerald, 1992. "The energy transition," Energy Policy, Elsevier, vol. 20(2), pages 116-123, February.
    28. Pundo, Moses O. & Fraser, Gavin C.G., 2006. "Multinominal logit analysis of household cooking fuel choice in rural Kenya: The case of Kisumu district," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 45(1), pages 1-14, March.
    29. Davis, Mark, 1998. "Rural household energy consumption : The effects of access to electricity--evidence from South Africa," Energy Policy, Elsevier, vol. 26(3), pages 207-217, February.
    30. Pachauri, S. & Mueller, A. & Kemmler, A. & Spreng, D., 2004. "On Measuring Energy Poverty in Indian Households," World Development, Elsevier, vol. 32(12), pages 2083-2104, December.
    31. Jordan Louviere, 2006. "What You Don’t Know Might Hurt You: Some Unresolved Issues in the Design and Analysis of Discrete Choice Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 34(1), pages 173-188, May.
    32. Barnes, Douglas F. & Khandker, Shahidur R. & Samad, Hussain A., 2010. "Energy access, efficiency, and poverty : how many households are energy poor in Bangladesh ?," Policy Research Working Paper Series 5332, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Talevi, Marta & Pattanayak, Subhrendu K. & Das, Ipsita & Lewis, Jessica J. & Singha, Ashok K., 2022. "Speaking from experience: Preferences for cooking with biogas in rural India," Energy Economics, Elsevier, vol. 107(C).
    2. Gill-Wiehl, A. & Ray, I. & Kammen, D., 2021. "Is clean cooking affordable? A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 151(C).
    3. Vania Vigolo & Rezarta Sallaku & Federico Testa, 2018. "Drivers and Barriers to Clean Cooking: A Systematic Literature Review from a Consumer Behavior Perspective," Sustainability, MDPI, vol. 10(11), pages 1-21, November.
    4. Han, Hongyun & Wu, Shu, 2018. "Rural residential energy transition and energy consumption intensity in China," Energy Economics, Elsevier, vol. 74(C), pages 523-534.
    5. Chen, Qiu, 2021. "District or distributed space heating in rural residential sector? Empirical evidence from a discrete choice experiment in South China," Energy Policy, Elsevier, vol. 148(PA).
    6. Xia Jiang & Tingting Tan & Bing Yuan & Chaoqun Wang & Yanhong Zhang, 2024. "RETRACTED ARTICLE: How does the green development program promote rural economy: energy and environmental effects in rural development of China," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-37, April.
    7. 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.
    8. 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.
    9. Chiradip Chatterjee & Nafisa Halim & Pallab Mozumder, 2021. "Emission Tax, Health Insurance, and Information: A Mechanism Design for Reducing Energy Consumption and Emission Risk," Economics of Disasters and Climate Change, Springer, vol. 5(3), pages 465-480, October.
    10. Chiradip Chatterjee & Nafisa Halim & Pallab Mozumder, 2022. "Energy conservation and health risk reduction: an experimental investigation of punishing vs. rewarding incentives," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 24(4), pages 551-570, October.
    11. Zhao, Yujia & Shuai, Jing & Wang, Chaofan & Shuai, Chuanmin & Cheng, Xin & Wang, Yilan & Zhang, Zumeng & Ding, Liping & Zhu, Yongguang & Zhou, Na, 2023. "Do the photovoltaic poverty alleviation programs alleviate local energy poverty? —Empirical evidence of 9 counties in rural China," Energy, Elsevier, vol. 263(PD).
    12. 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.
    13. 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.
    14. 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.
    15. Tarekegn Mamo Legamo & Milan casny & Workalemahu Tasew, 2021. "Energy Expenditure and Fuel Choices among Households in the Sidama Region, Southern Ethiopia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(2), pages 315-324.
    16. Crentsil, Aba Obrumah & Asuman, Derek & Fenny, Ama Pokuaa, 2019. "Assessing the determinants and drivers of multidimensional energy poverty in Ghana," Energy Policy, Elsevier, vol. 133(C).
    17. Stabridis, Omar & van Gameren, Edwin, 2018. "Exposure to firewood: Consequences for health and labor force participation in Mexico," World Development, Elsevier, vol. 107(C), pages 382-395.
    18. 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.
    19. Guta, Dawit Diriba, 2020. "Determinants of household use of energy-efficient and renewable energy technologies in rural Ethiopia," Technology in Society, Elsevier, vol. 61(C).
    20. Lindgren, Samantha, 2021. "Cookstove implementation and Education for Sustainable Development: A review of the field and proposed research agenda," Renewable and Sustainable Energy Reviews, Elsevier, vol. 146(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. 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.
    3. 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.
    4. Muller, Christophe & Yan, Huijie, 2018. "Household fuel use in developing countries: Review of theory and evidence," Energy Economics, Elsevier, vol. 70(C), pages 429-439.
    5. Rahut, Dil Bahadur & Das, Sukanya & De Groote, Hugo & Behera, Bhagirath, 2014. "Determinants of household energy use in Bhutan," Energy, Elsevier, vol. 69(C), pages 661-672.
    6. Han, Hongyun & Wu, Shu, 2018. "Rural residential energy transition and energy consumption intensity in China," Energy Economics, Elsevier, vol. 74(C), pages 523-534.
    7. Ahmed Moustapha Mfokeu & Elie Virgile Chrysostome & Jean-Pierre Gueyie & Olivier Ebenezer Mun Ngapna, 2023. "Consumer Motivation behind the Use of Ecological Charcoal in Cameroon," Sustainability, MDPI, vol. 15(3), pages 1-22, January.
    8. Andadari, Roos Kities & Mulder, Peter & Rietveld, Piet, 2014. "Energy poverty reduction by fuel switching. Impact evaluation of the LPG conversion program in Indonesia," Energy Policy, Elsevier, vol. 66(C), pages 436-449.
    9. Christophe Muller & Huijie Yan, 2018. "Household Fuel Use in Rural China," AMSE Working Papers 1808, Aix-Marseille School of Economics, France.
    10. Kowsari, Reza & Zerriffi, Hisham, 2011. "Three dimensional energy profile:," Energy Policy, Elsevier, vol. 39(12), pages 7505-7517.
    11. Muhammad Irfan & Michael P. Cameron & Gazi Hassan, 2021. "Can income growth alone increase household consumption of cleaner fuels? Evidence from Pakistan," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2021(2), pages 121-146.
    12. Hiemstra-van der Horst, Greg & Hovorka, Alice J., 2008. "Reassessing the "energy ladder": Household energy use in Maun, Botswana," Energy Policy, Elsevier, vol. 36(9), pages 3333-3344, September.
    13. Kojo Sarfo Gyamfi & Elena Gaura & James Brusey & Alessandro Bezerra Trindade & Nandor Verba, 2020. "Understanding Household Fuel Choice Behaviour in the Amazonas State, Brazil: Effects of Validation and Feature Selection," Energies, MDPI, vol. 13(15), pages 1-21, July.
    14. Gelo, Dambala & Kollamparambil, Umakrishnan & Jeuland, Marc, 2023. "The causal effect of income on household energy transition: Evidence from old age pension eligibility in South Africa," Energy Economics, Elsevier, vol. 119(C).
    15. Lohri, Christian Riuji & Rajabu, Hassan Mtoro & Sweeney, Daniel J. & Zurbrügg, Christian, 2016. "Char fuel production in developing countries – A review of urban biowaste carbonization," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 1514-1530.
    16. Lee, Soo Min & Kim, Yeon-Su & Jaung, Wanggi & Latifah, Sitti & Afifi, Mansur & Fisher, Larry A., 2015. "Forests, fuelwood and livelihoods—energy transition patterns in eastern Indonesia," Energy Policy, Elsevier, vol. 85(C), pages 61-70.
    17. Tafadzwa Makonese & Ayodeji P Ifegbesan & Isaac T Rampedi, 2018. "Household cooking fuel use patterns and determinants across southern Africa: Evidence from the demographic and health survey data," Energy & Environment, , vol. 29(1), pages 29-48, February.
    18. Rahut, Dil Bahadur & Behera, Bhagirath & Ali, Akhter, 2017. "Factors determining household use of clean and renewable energy sources for lighting in Sub-Saharan Africa," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 661-672.
    19. Arthur, Maria de Fatima S.R. & Zahran, Sammy & Bucini, Gabriela, 2010. "On the adoption of electricity as a domestic source by Mozambican households," Energy Policy, Elsevier, vol. 38(11), pages 7235-7249, November.
    20. Rahut, Dil Bahadur & Behera, Bhagirath & Ali, Akhter, 2016. "Household energy choice and consumption intensity: Empirical evidence from Bhutan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 53(C), pages 993-1009.

    More about this item

    Keywords

    Clean cooking stove; Discrete choice analysis; Bio-energy; Africa; Ethiopia; Consumer behaviour;
    All these keywords.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:34:y:2012:i:6:p:1763-1773. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eneco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.