Information Leverage: The Adoption of Clean Cooking Fuel in Bhutan

Research Institute for Environmental Economics and Management, Discussion Paper Series No. 1801

28 Pages Posted: 19 Apr 2018

See all articles by Ngawang Dendup

Ngawang Dendup

Waseda University - Graduate School of Economics

Toshi H. Arimura

Waseda University - School of Political Science and Economics

Date Written: March 2018

Abstract

The outcome of household choice depends on the private information available to an agent, particularly in terms of costs and benefits. This study examines the role of information in the adoption of clean cooking fuel in Bhutan. We use a rural subsample of nationally representative data from the 2012 Bhutan Living Standard Survey (BLSS) conducted in all twenty districts. We estimate a bivariate probit model to control for the potentially endogenous information variable. The results indicate that households that have access to information are approximately 40 percent more likely to adopt clean cooking fuel. Similarly, households are 49 percent less likely to adopt dirty fuel (firewood) when exposed to information. Other factors such as education, the electricity supply, access to liquidity and the distance to the market are important factors that contribute to adopting clean cooking fuel. The results also show that the effect of information varies depending on the level of education of the household heads, thus highlighting the importance of accounting for the level of education of information recipients when designing a similar information provision.

Keywords: clean fuel, information, operator, environment, indoor air pollution

JEL Classification: Q50, Q55

Suggested Citation

Dendup, Ngawang and Arimura, Toshihide H., Information Leverage: The Adoption of Clean Cooking Fuel in Bhutan (March 2018). Research Institute for Environmental Economics and Management, Discussion Paper Series No. 1801. Available at SSRN: https://ssrn.com/abstract=3154984 or http://dx.doi.org/10.2139/ssrn.3154984

Ngawang Dendup (Contact Author)

Waseda University - Graduate School of Economics ( email )

1-6-1 Nishi-waseda, Shinjuku-ku
Tokyo
Japan

Toshihide H. Arimura

Waseda University - School of Political Science and Economics ( email )

1-6-1 Nishi-Waseda
Shinjuku-ku, Tokyo 169-8050, Tokyo 169-8050
Japan

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