Modeling household cooking fuel choice: A panel multinomial logit approach

We use three rounds of a rich panel data set to investigate the determinants of household cooking fuel choice and energy transition in urban Ethiopia. We observe that the expected energy transition did not occur following economic growth in Ethiopia during the decade 2000–2009. 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 policy levers to encourage transition to cleaner energy sources.     

Renewables in the energy transition: Evidence on solar home systems and lighting fuel choice in Kenya

We study the determinants of households' choices of lighting fuels in Kenya including the option of using solar home systems (SHS). Our goal is to add new evidence on the factors that influence the introduction and adoption of decentralized and less carbon-intensive energy sources in developing countries, and, more generally, to the empirical debate on the energy ladder. We capitalize on a unique representative survey on energy use and sources from Kenya, one of the few relatively well-established SHS markets in the world. Our results reveal some very interesting patterns of the fuel transition in the context of lighting fuel choices. While we find clear evidence for a cross-sectional energy ladder, the income threshold for modern fuel use – including solar energy use – to move beyond traditional and transitional fuels is very high. Income and education turn out to be key determinants of SHS adoption, but we also find a very pronounced effect of SHS clustering, i.e. the prevalence of SHS in the proximity of a potential user increases the likelihood of adoption. In addition, we do not find a negative correlation between grid access and SHS use.     

Rural household energy consumption pattern in the disregarded villages of Bangladesh

Energy is one of the most important ingredients required to alleviate poverty and realize socio-economic and human development, which is directly interconnected to the prominence of life in rural areas. An extensive survey on household energy consumption pattern interrelating socio-economic and demographic factors was carried out in the disregarded villages of Bangladesh using stratified random sampling technique of 120 households. This paper focuses on household energy consumption, various combinations of fuels and their expenditure in the study area. Biomass, kerosene, electricity, LPG and candle were found as the energy carrier used in the rural households in this study. The study shows that 92% households use biomass, 28% LPG, 89% kerosene, 78% electricity and 27% candle as fuel types. It was found that 56% households collected biomass from their own homesteads and/or agricultural lands. Bamboo, branches, cow dung, firewood, rice husk, leaves & twigs and straw were found as the biomass for household energy use. Average monthly household expenditure for total energy was US$ 9.67 (SE, 0.31) per month while the total monthly income of the household was US$ 123 (SE, 2.53). The ratio of the total monthly energy expenditure to the total monthly income was 7.86%. The study will be helpful to understand the energy consumption system and its expenditure in the rural areas of Bangladesh and to the policy formulation for energy production, consumption and utilization.     

Household energy demand in Kenya: An application of the linear approximate almost ideal demand system (LA-AIDS)

This paper estimates price and fuel expenditure elasticities of demand by applying the linear Approximate Almost Ideal Demand system (LA-AIDS) to 3665 households sampled across Kenya in 2009. The results indicate that motor spirit premium (MSP), automotive gas oil (AGO) and lubricants are price elastic while fuel wood, kerosene, charcoal, liquefied petroleum gas (LPG) and electricity are price inelastic. Kerosene is income elastic while fuel wood, charcoal, LPG, electricity, MSP and AGO are income inelastic. The results also reveal fuel stack behaviour, that is, multiple fuel use among the households. Main policy implications of the results include increasing the penetration of alternative fuels as well as provision of more fiscal incentives to increase usage of cleaner fuels. This not withstanding however, the household income should be increased beyond a certain point for the household to completely shift and use a new fuel.     

Household energy consumption patterns in agricultural zone,pastoral zone and agro-pastoral transitional zone in eastern part of Qinghai-Tibet Plateau

Despite the rapid development in fossil fuel, biomass is still the main energy resource in rural China. However, the research on household energy consumption on the Qinghai-Tibet Plateau is limited. We investigated the differences in household energy consumption pattern, the influencing factors of fuel type choice, and the willingness to use clean energy in agricultural, pastoral and agro-pastoral transitional zones in eastern part of Qinghai-Tibet Plateau. Information was collected through Participatory Rural Appraisal (PRA) and Physical Monitoring (PM). We found that biomass was the main energy resource in pastoral regions while fossil energy was the main fuel in agricultural regions. Energy consumption per capita in pastoral regions was higher than that in agricultural regions in our study area, and annual household energy consumption in pastoral regions was much higher than the provincial average. Altitude, livelihood and education level were main factors affecting domestic fuel type choice, while altitude and household size were two factors determining energy consumption per capita. The use of biomass as fuel could have negative influence on the material cycle in ecosystem and affect the carbon budget on the Qinghai-Tibet Plateau. Householders were willing to use clean energy and most interviewees chose electricity as their favorite fuel type. Therefore, the modern utilization of biomass and the exploration of renewable energy are promising in future energy development in eastern part of Qinghai-Tibet Plateau. However, energy transition might be constrained by poor local transportation and traditional consumption habit of indigenous community.     

Effect of fuelwood scarcity and socio-economic factors on household bio-based energy use and energy substitution in rural Ethiopia

In Ethiopia biomass is predominantly utilized for household energy needs often using inefficient rudimentary stoves which cause adverse environmental and welfare effects. This paper examined the contribution of biomass resources to rural household energy use and energy substitution. The analysis applied the ordinary least square in the final stage estimation of fuelwood and overall biomass energy consumption by using predicted shadow prices. The paper used Tobit model to estimate charcoal and agricultural fuel consumption due to the presence of censoring. An increase in fuelwood shadow price was associated with reduced household fuelwood consumption with price elasticity of −0.38. The cross price elasticity between fuelwood and agricultural fuels revealed no evidence of energy substitution, which conforms to the findings of previous studies. Household access to electricity was associated with lower household biomass energy utilization but kerosene was not fuelwood substitute. Household energy use conformed to the ‘fuel stacking’ or ‘multiple fuel use’ concept, but households preferred modern energy options as welfare increased in areas where modern energy is available. This suggests that there is a promising prospect for fuel-transition, but access to modern energy and economic growth have key roles. The findings suggest that a concerted policy effort is required that would help diversify rural livelihoods, improve living standards and encourage economic growth, encourage inter-fuel substitution through improved modern energy access and afforestation to increase biomass supply.     

Three dimensional energy profile:: A conceptual framework for assessing household energy use

The provision of adequate, reliable, and affordable energy has been considered as a cornerstone of development. More than one-third of the world's population has a very limited access to modern energy services and suffers from its various negative consequences. Researchers have been exploring various dimensions of household energy use in order to design strategies to provide secure access to modern energy services. However, despite more than three decades of effort, our understanding of household energy use patterns is very limited, particularly in the context of rural regions of the developing world. Through this paper, the past and the current trends in the field of energy analysis are investigated. The literature on rural energy and energy transition in developing world has been explored and the factors affecting households' decisions on energy use are listed. The and the factors affecting households' decisions on energy use are listed. The gaps identified in the literature on rural household energy analysis provide a basis for developing an alternative model that can create a more realistic view of household energy use. The three dimensional energy profile is presented as a new conceptual model for assessment of household energy use. This framework acts as a basis for building new theoretical and empirical models of rural household energy use.     

Nairobi households and their energy use: An economic analysis of consumption patterns

This paper describes and analyses the results of an urban household energy survey conducted in Nairobi, Kenya, during 1981. Aggregate data on fuel and energy demand are examined in light of the problems facing urban areas in developing countries such as the increases in petroleum prices in the 1970s and the depletion of non-commercial energy resources such as wood. The paper provides a disaggregation of urban household fuel demand by income group. Using regression analysis, the results confirm that there is a high income elasticity for electricity (approximately 1.6), while charcoal exhibits a negative income elasticity of -0.23. Gas energy consumption is primarily explained by price movements.     

Cooking in West Sumatra: Interfuel substitution and the choice of cooking method

The results of a survey on energy consumption in cooking in five villages in West Sumatra, Indonesia, are used to investigate the substitution of commercial fuels for non-commercial ones in a rural community. Land-use patterns, the availability of non-commercial fuelwood and the state of socio-economic development of the villages (affecting the average income, availability of commercial fuels and the expectations of the villagers) all influenced the types and quantities of fuel use. Within each village cooking energy consumption and the type of cooking method chosen varied considerably with income and household size, and with the individual preferences of each villager.     

Spatiotemporal analysis of ethanol market penetration

Consumption of ethanol in the United States has increased rapidly over the last few years, fueled by both higher crude oil prices and generous public support measures for renewable fuels. The contribution of ethanol to the transport energy mix varies markedly by state. Heterogeneity in ethanol adoption and market development is investigated using a hierarchical, spatiotemporal model. A Bayesian Markov chain Monte Carlo method is employed for estimation of the proposed flexible model structure. Besides spatial dependence among neighboring states, differential inclusion rates of ethanol are found to be largely determined by national- and state-level biofuel incentive policies, relative gasoline prices, feedstock availability, household median income, MTBE bans, and density of fuel retail infrastructure. Our findings imply that increasing renewable fuel support as well as investing in extending the transportation and fuel retail infrastructure can result in higher ethanol consumption.     

Does centralized residence promote the use of cleaner cooking fuels? Evidence from rural China

The Chinese government has implemented the rural centralized residence (RCR) policy to promote rural development in 24 provinces since 2005. This study aims to estimate the effects of RCR on households' choice of clean cooking fuels by applying the instrumental variable approach on a dataset with 3685 observations in Sichuan Province. The empirical analysis showed that RCR has a significant positive effect on the choice of clean cooking fuels. We also found that RCR makes farmer households shift from using non-clean energy to clean energy for cooking by increasing both their total income and the cost of collecting and storing traditional fuels. Peer effects also motivate households to use clean cooking fuels. Further analysis indicates that an increase in the expenditure on clean energy due to RCR does not increase the farmer households' living burden, since the increase in the total income caused by RCR is much greater. Considering the accessibility and affordability of clean energy, the RCR policy could improve the standards of living among rural residents and synergistically promote energy transition in rural China.     

Fuel switching in Harare: An almost ideal demand system approach

In urban areas several energy choices are available and the amount of (a given type of) fuel consumed is based on complex household decision processes. This paper analyzes urban fuel (particularly firewood) demand in an energy mix context by means of an Almost Ideal Demand System based on a survey carried out among 500 households in Harare in 2003. Using a multi-stage budgeting approach, the model estimates the share of energy in total household expenditure and the shares of firewood, electricity and kerosene in total energy expenditure. Using the model results simulations show that the main policy handles to reduce the demand for firewood and to mitigate environmental degradation such as deforestation include decreasing prices of alternative fuels, notably kerosene. Moreover, in the long run sound economic policy will positively impact on the energy budget whereas education and the degree of electrification will contribute to a reduction of the use of firewood.     

Electricity saving in households—A social cognitive approach

We propose a conceptual framework for understanding the (lack of) energy saving efforts of private households based on Bandura’s (1986) social cognitive theory. Results from applying this framework on a sample of Danish private electricity consumers are presented and it is concluded (a) that households' electricity consumption depends on both structural and motivational factors, (b) that their electricity saving effort depends on the strength of their internalized norms or self-expectations and on self-efficacy related factors, and (c) that there are predictable patterns of interaction among household members that influence their electricity consumption. The results suggest two approaches to promote electricity saving in households: (1) to change the socio-structural environment to be more facilitating for energy saving and empower householders to be more effective in their striving towards this goal through improved feedback about their household's electricity consumption and (2) social norms marketing, communicating social expectations and others' successful electricity saving achievements.     

Effects of consumer subsidy on household fuel switching from coal to cleaner fuels: A case study for anthracites in Korea

The Korean coal industry is in a transition under low carbon policy through the steady reduction of coal production. Since consumer subsidy for the consumption of anthracites briquette in low-income households caused a distortion in domestic coal market, the so-called coupon program will be the first target in energy reform policy in order to induce fuel switching from anthracites to alternative clean energy. This paper tries to identify various factors that influence households' fuel switching decision. Disutility from briquette consumption is also considered as an important factor. Using the 2007 census data on briquette-consuming households, it is found that the coupon program provides an adverse effect to switching fuels to clean energy while the disutility of briquettes is positively associated with the probability of fuel switching. However, the empirical finding suggests that the policy alone attempting to remove coupon program may fail to switch fuels unless the cost of boiler changes is substantially reduced through the provision of accessible networks to alternative energy sources. It indicates that reform policy for consumer subsidy must be understood in line with more comprehensive regional energy plans to resolve energy poverty issue.     

Renewable energy resources and technologies applicable to Ireland

The energy consumed in Ireland is primarily achieved by the combustion of fossil fuels. Ireland's only indigenous fossil fuel is peat; all other fossil fuels are imported. As fossil fuels continually become more expensive, their use as an energy source also has a negative impact on the environment. Ireland's energy consumption can be separated into three divisions: transportation, electricity generation and heat energy. Ireland however has a vast range of high quality renewable energy resources. Ireland has set a target that 33% of its electricity will be generated from renewable sources by 2020 [I. Government. Delivering a Sustainable Energy Future for Ireland; 2007.]. The use of biomass, wind and ocean energy technologies is expected to play a major part in meeting this target. The use of renewable energy technologies will assist sustainable development as well as being a solution to several energy related environmental problems. This paper presents the current state of renewable energy technologies and potential resources available in Ireland. Considering Ireland's present energy state, a future energy mix is proposed.     

Model projections for household energy use in developing countries

The residential sector plays an important role in the energy system of developing countries. In this paper we introduce a bottom up simulation model for household energy use. The model describes energy demand for several end-use functions based on a set of physical drivers, such as floor space and heating degree days. The model also recognizes different population groups: i.e. urban and rural households, each distinguishing five income quintiles. The model is applied to analyze possible future developments of residential energy use in five developing world regions: India, China, South East Asia, South Africa and Brazil. We find that in each of these regions cooking is currently the main end-use function, but that other functions, such as space heating, cooling and appliances become more important. At the same time, energy consumption slowly shifts towards modern fuels. The model also shows that climate policy can reduce residential energy emissions, but could also slow down the energy transition away from traditional fuels in low income classes.     

Progress and recent trends in biofuels

In this paper, the modern biomass-based transportation fuels such as fuels from Fischer–Tropsch synthesis, bioethanol, fatty acid (m)ethylester, biomethanol, and biohydrogen are briefly reviewed. Here, the term biofuel is referred to as liquid or gaseous fuels for the transport sector that are predominantly produced from biomass. There are several reasons for bio-fuels to be considered as relevant technologies by both developing and industrialized countries. They include energy security reasons, environmental concerns, foreign exchange savings, and socioeconomic issues related to the rural sector. The term modern biomass is generally used to describe the traditional biomass use through the efficient and clean combustion technologies and sustained supply of biomass resources, environmentally sound and competitive fuels, heat and electricity using modern conversion technologies. Modern biomass can be used for the generation of electricity and heat. Bioethanol and biodiesel as well as diesel produced from biomass by Fischer–Tropsch synthesis are the most modern biomass-based transportation fuels. Bio-ethanol is a petrol additive/substitute. It is possible that wood, straw and even household wastes may be economically converted to bio-ethanol. Bio-ethanol is derived from alcoholic fermentation of sucrose or simple sugars, which are produced from biomass by hydrolysis process. Currently crops generating starch, sugar or oil are the basis for transport fuel production. There has been renewed interest in the use of vegetable oils for making biodiesel due to its less polluting and renewable nature as against the conventional petroleum diesel fuel. Biodiesel is a renewable replacement to petroleum-based diesel. Biomass energy conversion facilities are important for obtaining bio-oil. Pyrolysis is the most important process among the thermal conversion processes of biomass. Brief summaries of the basic concepts involved in the thermochemical conversions of biomass fuels are presented. The percentage share of biomass was 62.1% of the total renewable energy sources in 1995. The reduction of greenhouse gases pollution is the main advantage of utilizing biomass energy.     

The hourly income elasticity of electricity

Using a detailed data set on appliance-level electricity consumption at the hourly level, we provide the first estimates of hourly and end-use-specific income elasticities for electricity. Such estimates are informative about how consumption patterns in general, and peak demand in particular, will develop as households' income changes. We find that the income elasticities are highest during peak hours for kitchen and lighting, with point estimates of roughly 0.4, but insignificant for space heating.     

Tenancy and energy choice for lighting and cooking: Evidence from Ghana

This study uses a national household living standard survey and bivariate probit to assess how variations in tenure mode influence the choice of energy sources for lighting and cooking. Results indicate that tenure mode has heterogeneous effect on the lighting and cooking energy choice. Relative to owner-occupied unit, renters use other fuel (firewood, candle, and crop residue) for lighting and use modern (LPG), transition (charcoal), and other fuel (electricity, crop residue, kerosene, sawdust, and, animal waste) for cooking. By dividing the sample into income quartiles, the results showed that renters in the fourth quartiles use electricity and LPG (modern fuel) but less likely to use dirty fuel (fuelwood) for cooking. Tenancy agreement, ownership right and preferences, and the structure of a building are the plausible mechanism that may be accounting for the heterogeneity in the adoption of lighting and cooking energy sources. The empirical implications of the results are discussed.