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Stacking up the Ladder: A Panel Data Analysis of Tanzanian Household Energy Choices

Author

Listed:
  • Johanna Choumert

    (Economic Development Initiatives (EDI))

  • Pascale Combes Motel

    (CERDI)

  • Leonard Le Roux

    (School of Economics – Université Clermont Auvergne)

Abstract

The energy sector in Tanzania reflects its low level of industrialization and development. In 2016, only 16.9% of rural and 65.3% of urban people in Tanzania Mainland were connected to some form of electricity. This paper makes use of a nationally representative three wave panel dataset (2008-2013) to contribute to the literature on household energy use decisions in the context of the stacking and energy ladder hypotheses in Tanzania. We firstly adopt a panel multinomial-logit approach to model the determinants of household cooking and lighting fuel choices. Secondly, we focus explicitly on energy stacking behaviour, proposing various ways of measuring what is inferred when stacking behaviour is thought of in the context of the energy transition, and presenting household level correlates of energy stacking behaviour. We find that while higher household incomes are strongly associated with a transition towards the adoption of more modern fuels, especially in lighting, this takes place in a context of significant fuel stacking. The implications for policy aimed mostly at connecting households to the electric grid are that many of the benefits of the energy transition in terms of public health, environmental and social factors may be subdued.

Suggested Citation

  • Johanna Choumert & Pascale Combes Motel & Leonard Le Roux, 2017. "Stacking up the Ladder: A Panel Data Analysis of Tanzanian Household Energy Choices," Working Papers 2017.28, FAERE - French Association of Environmental and Resource Economists.
    • Handle: RePEc:fae:wpaper:2017.28
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    Keywords

    Fuel choices; Charcoal; Biomass; Electricity; Tanzania;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • N5 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries

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