Scandinavian Working Papers in Economics
Working Papers in Economics,
University of Gothenburg, Department of Economics
No 632: Modelling Household Cooking Fuel Choice: a Panel Multinomial Logit Approach
Yonas Alem (), Abebe D. Beyene, Gunnar Köhlin () and Alemu Mekonnen
Additional contact information
Yonas Alem: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: P.O Box 640, SE 40530 Gothenburg, Sweden
Abebe D. Beyene: Environmental Economics Policy Forum, EDRI, Ethiopia
Gunnar Köhlin: Department of Economics, School of Business, Economics and Law, Göteborg University, Postal: P.O. Box 640, SE 40530 Gothenburg, Sweden
Alemu Mekonnen: Department of Economics, Addis Ababa University, Ethiopia
Abstract: 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 emultinomial logit model suggest 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” by households. We argue that policy makers could target these policy levers to encourage transition to cleaner energy sources.
Keywords: Ethiopia; urban; energy choice; random effects multinomial logit
42 pages, October 2015
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