Scandinavian Working Papers in Economics

Working Papers in Economics,
University of Gothenburg, Department of Economics

No 557: The Dynamics of Electric Cookstove Adoption: Panel data evidence from Ethiopia

Yonas Alem (), Sied Hassen () and Gunnar Köhlin ()
Additional contact information
Yonas Alem: School of Business, Economics and Law, Postal: Department of Economics, University of Gothenburg, P.O.Box 640, SE 40530 GOTHENBURG, Sweden
Sied Hassen: School of Business, Economics and Law, Postal: Department of Economics, University of Gothenburg, P.O.Box 640, SE 40530 GOTHENBURG, Sweden
Gunnar Köhlin: School of Business, Economics and Law, Postal: Dept of Economics, University of Gothenburg, P.O.Box 640, SE 405 30 GOTHENBURG, Sweden

Abstract: Previous studies on improved cookstove adoption in developing countries use cross-sectional data, which makes it difficult to control for unobserved heterogeneity and investigate what happens to adoption over time. We use robust non-linear panel data and hazard models on three rounds of panel data from urban Ethiopia to investigate the determinants and dynamics of electric cookstove adoption. We find the price of electricity and firewood, and access to credit as major determinants of adoption and transition. Our findings have important implications for policies aiming at promotion of energy transition and reduction of the pressure on forest resources in developing countries.

Keywords: Cookstoves; Electric Mitad; Firewood; Panel data; Random-Effects Probit

JEL-codes: Q40; Q41; Q42; Q48

25 pages, February 28, 2013

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