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Fuel choices in urban Indian households

Published online by Cambridge University Press:  01 December 2007

MEHDI FARSI ,
MASSIMO FILIPPINI  and
SHONALI PACHAURI
MEHDI FARSI
Affiliation:
Centre for Energy Policy and Economics, Department of Management, Technology and Economics, ETH Zurich, Switzerland and Department of Economics, University of Lugano, Switzerland.
MASSIMO FILIPPINI
Affiliation:
Centre for Energy Policy and Economics, Department of Management, Technology and Economics, ETH Zurich, Switzerland and Department of Economics, University of Lugano, Switzerland.
SHONALI PACHAURI*
Affiliation:
International Institute for Applied Systems Analysis (IIASA), Schlossplatz 1, A-2361, Laxenburg, Austria. Tel: +43 2236 807 475. Fax: +43 2236 71313. Email: pachauri@iiasa.ac.at
*
* Corresponding author
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Abstract

This paper applies an ordered discrete choice framework to model fuel choices and patterns of cooking fuel use in urban Indian households. The choices considered are for three main cooking fuels: firewood, kerosene, and LPG (liquid petroleum gas). The models, estimated using a large microeconomic dataset, show a reasonably good performance in the prediction of households’ primary and secondary fuel choices. This suggests that ordered models can be used to analyze multiple fuel use patterns in the Indian context. The results show that lack of sufficient income is one of the main factors that retard households from using cleaner fuels, which usually also require the purchase of relatively expensive equipments. The results also indicate that households are sensitive to LPG prices. In addition to income and price, several socio-demographic factors such as education and sex of the head of the household are also found to be important in determining household fuel choice.

Type
Research Article
Information
Environment and Development Economics , Volume 12 , Issue 6 , December 2007 , pp. 757 - 774
Copyright
Copyright © Cambridge University Press 2007

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