Household Cooking Fuel Choice in India, 2004-2012: A Panel Multinomial Analysis

37 Pages Posted: 14 Oct 2019

See all articles by Ying-Min Kuo

Ying-Min Kuo

Oklahoma State University - Stillwater, Department of Economics & Legal Studies in Business, Students

Mehtabul Azam

Oklahoma State University - Stillwater; IZA Institute of Labor Economics

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Abstract

We use two waves of nationally representative India Human Development Survey to examine factors driving the cooking fuel choice in urban and rural India, separately. We utilize a random effects multinomial logit model that controls for unobserved household heterogeneity. We find that a clean-break with the use of traditional fuels is less likely in rural areas, but more probable in urban areas. The household characteristics (e.g. income, education) that are positively correlated with use of clean fuel also increases the probability of fuel stacking for rural households. We also find that access to paved road is an important determinant for rural household adopting clean fuel, and there exists evidence of social spillover effects in rural areas. Moreover, the bargaining power of women that is associated with economic status (e.g. education or economic freedom) is positively associated with the use of clean fuel. Finally, we find considerable impact of liquefied petroleum gas prices on the probability of use of clean fuel for urban households, but no significant impact for rural households.

Keywords: fuel choice, fuel stacking, random eects multinomial logit, India

JEL Classification: Q42, Q35, O12, O13, C25

Suggested Citation

Kuo, Ying-Min and Azam, Mehtabul, Household Cooking Fuel Choice in India, 2004-2012: A Panel Multinomial Analysis. IZA Discussion Paper No. 12682, Available at SSRN: https://ssrn.com/abstract=3468630

Ying-Min Kuo (Contact Author)

Oklahoma State University - Stillwater, Department of Economics & Legal Studies in Business, Students ( email )

Stillwater, OK
United States

Mehtabul Azam

Oklahoma State University - Stillwater ( email )

Stillwater, OK 74078-0555
United States

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

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