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Spillover Effects and Regional Determinants in the Ecuadorian Clean-Cooking Program: A Spatiotemporal Econometric Analysis

Author

Listed:
  • Moisés Obaco

    (Universidad Católica del Norte & FACEA & Departamento de Economía, Antofagasta, Chile)

  • Daniel Davi-Arderius

    (Copenhagen School of Energy Infrastructure (CSEI), Copenhagen Business School, Denmark & University of Barcelona and Chair of Energy Sustainability & Barcelona Institute of Economics (IEB))

  • Nicola Pontarollo

    (Department of Economics and Management, University of Brescia)

Abstract

Developing countries are making great efforts to electrify residences to reduce dependence on fossil fuels and deal with climate change. In 2014, Ecuador launched a clean-cooking program known as the Programa de Cocción Eficiente (PCE) aimed at replacing liquefied petroleum gas (LPG)-fired cookstoves and LPG-fired boilers with electric devices. Using an original dataset of monthly information (2015-2021) at the parish level, we study several important determinants of participation in this program that have not yet been addressed. We first model spatial spillovers and then investigate the impact of regional power quality and the effect of other subsidized programs related to electricity consumption. Our results show spillover effects for PCE participation with regard to cooking but not for the overall PCE participation rate. Higher participation is associated to better supply quality and with the use of other power subsidies. Policy recommendations include the need to perform detailed spatial analyof the determinants of participation in these programs, instead of using surveys, and designing programs using a placed-based approach, in addition to evaluating cross-sectional effects between subsidies in advance in order to avoid unforeseen trade-offs and considering the regulatory framework for utilities to provide effective incentives to improve supply quality.

Suggested Citation

  • Moisés Obaco & Daniel Davi-Arderius & Nicola Pontarollo, 2023. "Spillover Effects and Regional Determinants in the Ecuadorian Clean-Cooking Program: A Spatiotemporal Econometric Analysis," Working Papers 2023/07, Institut d'Economia de Barcelona (IEB).
    • Handle: RePEc:ieb:wpaper:doc2023-07
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    File URL: https://ieb.ub.edu/ca/publication/2023-07-issue-brief-spillover-effects-and-regional-determinants-in-the-ecuadorian-clean-cooking-program-a-spatiotemporal-econometric-analysis/
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    More about this item

    Keywords

    Clean-cooking programs; Energy poverty; Spatial spillover effects; Power quality; Electrical reliability; Latin America; Developing countries; Ecuador;
    All these keywords.

    JEL classification:

    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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