IDEAS home Printed from https://ideas.repec.org/p/rff/dpaper/dp-13-12-efd.html
   My bibliography  Save this paper

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.rff.org/RFF/documents/EfD-DP-13-12.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. Catherine Wolfram & Orie Shelef & Paul Gertler, 2012. "How Will Energy Demand Develop in the Developing World?," Journal of Economic Perspectives, American Economic Association, vol. 26(1), pages 119-138, Winter.
    3. Beyene, Abebe D. & Koch, Steven F., 2013. "Clean fuel-saving technology adoption in urban Ethiopia," Energy Economics, Elsevier, vol. 36(C), pages 605-613.
    4. Gebreegziabher, Zenebe & Mekonnen, Alemu & Kassie, Menale & Köhlin, Gunnar, 2012. "Urban energy transition and technology adoption: The case of Tigrai, northern Ethiopia," Energy Economics, Elsevier, vol. 34(2), pages 410-418.
    5. Ouedraogo, Boukary, 2006. "Household energy preferences for cooking in urban Ouagadougou, Burkina Faso," Energy Policy, Elsevier, vol. 34(18), pages 3787-3795, December.
    6. Peter Haan & Arne Uhlendorff, 2006. "Estimation of multinomial logit models with unobserved heterogeneity using maximum simulated likelihood," Stata Journal, StataCorp LP, vol. 6(2), pages 229-245, June.
    7. Heltberg, Rasmus, 2005. "Factors determining household fuel choice in Guatemala," Environment and Development Economics, Cambridge University Press, vol. 10(3), pages 337-361, June.
    8. 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.
    9. 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.
    10. Leiwen Jiang & Brian C. O'Neill, 2004. "The energy transition in rural China," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 21(1/2), pages 2-26.
    11. Chambwera, Muyeye & Folmer, Henk, 2007. "Fuel switching in Harare: An almost ideal demand system approach," Energy Policy, Elsevier, vol. 35(4), pages 2538-2548, April.
    12. Glick, Peter & Sahn, David, 2005. "Intertemporal female labor force behavior in a developing country: what can we learn from a limited panel?," Labour Economics, Elsevier, vol. 12(1), pages 23-45, February.
    13. Heltberg, Rasmus, 2004. "Fuel switching: evidence from eight developing countries," Energy Economics, Elsevier, vol. 26(5), pages 869-887, September.
    14. Alem, Yonas & Söderbom, Måns, 2012. "Household-Level Consumption in Urban Ethiopia: The Effects of a Large Food Price Shock," World Development, Elsevier, vol. 40(1), pages 146-162.
    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. 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.
    2. 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.
    3. 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.
    4. 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.

    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. Alem, Yonas & Beyene, Abebe D. & Köhlin, Gunnar & Mekonnen, Alemu, 2016. "Modeling household cooking fuel choice: A panel multinomial logit approach," Energy Economics, Elsevier, vol. 59(C), pages 129-137.
    2. 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.
    3. 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.
    4. Christophe Muller & Huijie Yan, 2018. "Household Fuel Use in Rural China," AMSE Working Papers 1808, Aix-Marseille School of Economics, France.
    5. 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.
    6. Karimu, Amin & Mensah, Justice Tei & Adu, George, 2016. "Who Adopts LPG as the Main Cooking Fuel and Why? Empirical Evidence on Ghana Based on National Survey," World Development, Elsevier, vol. 85(C), pages 43-57.
    7. 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).
    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. 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.
    10. 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.
    11. 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.
    12. Zhang, Xiao-Bing & Hassen, Sied, 2017. "Household fuel choice in urban China: evidence from panel data," Environment and Development Economics, Cambridge University Press, vol. 22(4), pages 392-413, August.
    13. Klege, Rebecca A. & Amuakwa-Mensah, Franklin & Visser, Martine, 2022. "Tenancy and energy choices in Rwanda. A replication and extension study," World Development Perspectives, Elsevier, vol. 26(C).
    14. Wassie, Yibeltal T. & Rannestad, Meley M. & Adaramola, Muyiwa S., 2021. "Determinants of household energy choices in rural sub-Saharan Africa: An example from southern Ethiopia," Energy, Elsevier, vol. 221(C).
    15. Ren, Junqiushi & Xiong, Deyin, 2023. "Do social assistance programs promote the use of clean cooking fuels? Evidence from China's new rural pension scheme," Energy Policy, Elsevier, vol. 182(C).
    16. 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.
    17. Gebreegziabher, Zenebe & Mekonnen, Alemu & Kassie, Menale & Köhlin, Gunnar, 2012. "Urban energy transition and technology adoption: The case of Tigrai, northern Ethiopia," Energy Economics, Elsevier, vol. 34(2), pages 410-418.
    18. Anil Shrestha & Makoto Kakinaka, 2022. "Remittance Inflows and Energy Transition of the Residential Sector in Developing Countries," Sustainability, MDPI, vol. 14(17), pages 1-19, August.
    19. Li Huang & Heng Wu & Mi Zhou, 2022. "Implications of Non-Farm Work for Clean Energy Adoption: Evidence from Rural China," Agriculture, MDPI, vol. 12(12), pages 1-19, December.
    20. Liu, Wenling & Spaargaren, Gert & Heerink, Nico & Mol, Arthur P.J. & Wang, Can, 2013. "Energy consumption practices of rural households in north China: Basic characteristics and potential for low carbon development," Energy Policy, Elsevier, vol. 55(C), pages 128-138.

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:rff:dpaper:dp-13-12-efd. 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: Resources for the Future (email available below). General contact details of provider: https://edirc.repec.org/data/rffffus.html .

    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.