Who Adopts LPG as the Main Cooking Fuel and Why? Empirical Evidence on Ghana Based on National Survey

31 Pages Posted: 29 Aug 2016

See all articles by Amin Karimu

Amin Karimu

University of Umea

Justice Mensah

Swedish University of Agricultural Sciences (SLU) - Department of Economics

George Adu

Nordic Africa Institute

Date Written: April 26, 2016

Abstract

The aim of this paper is to identify the factors that influence the probability of adopting LPG as the main cooking fuel in Ghana using household level data gleaned from last two nationwide household surveys (GLSS 5 & GLSS 6). Using a flexible semi-parametric specification, the following were uncovered. First, we find socioeconomic and demographic factors such as income, education, access to urban infrastructure, location of household, as key drivers of households' choice of LPG as main cooking energy source. Again the influences of these factors are stable across time, and with a strong price effect. The evidence shows that urban households with better socioeconomic and demographic factors are likely to adopt LPG as the main cooking fuel relative to households in rural areas and also urban households with poor socioeconomic and demographic factors. Finally, we observe that the imposition of fully parametric structure (functional form) prior to estimation on factors such as age of household head, income and household size as done in the literature is inappropriate, at least in the case of Ghana and tend to bias the marginal effects. There is strong evidence of variations in the response rate of LPG adoption over the domains of income, household size and the age of the household head. The results suggest a policy dichotomy between rural and urban dwellers for it to be effective.

Keywords: Fuels, cooking, households, development, energy poverty, Ghana

JEL Classification: C14, O13, Q41, Q42

Suggested Citation

Karimu, Amin and Mensah, Justice and Adu, George, Who Adopts LPG as the Main Cooking Fuel and Why? Empirical Evidence on Ghana Based on National Survey (April 26, 2016). CERE Working Paper, 2016:9, Available at SSRN: https://ssrn.com/abstract=2770348 or http://dx.doi.org/10.2139/ssrn.2770348

Amin Karimu (Contact Author)

University of Umea ( email )

Justice Mensah

Swedish University of Agricultural Sciences (SLU) - Department of Economics ( email )

Box 7013 (Johan Brauners väg 3)
Uppsala, 750 07
Sweden
46760701524 (Phone)

HOME PAGE: http://www.slu.se/sv/institutioner/ekonomi/personal/mensah-justice-tei/

George Adu

Nordic Africa Institute ( email )

Villavägen 6 SE-752 36
Uppsala
Sweden

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