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Evaluating the relative strength of product-specific factors in fuel switching and stove choice decisions in Ethiopia. A discrete choice model of household preferences for clean cooking alternatives

Takeshi Takama, Stanzin Tsephel and Francis X. Johnson

Energy Economics, 2012, vol. 34, issue 6, 1763-1773

Abstract: Switching from conventional stoves to modern clean, safe, and efficient stoves will improve health and social welfare for the 2.7billion people worldwide that lack reliable access to modern energy services. In this paper, we critically review some key theoretical dimensions of household consumer behaviour in switching from traditional biomass cooking stoves to modern efficient stoves and fuels. We then describe the results of empirical research investigating the determinants of stove choice, focusing on the relative strength of product-specific factors across three wealth groups. A stated preference survey and discrete choice model were developed to understand household decision-making associated with cooking stove choice in Addis Ababa, Ethiopia. The study found that, with the exception of price and usage cost factors for the high wealth group, the product-specific factors that were investigated significantly affect stove and fuel choices. The relative strength of factors was assessed in terms of Marginal Willingness to Pay and provides some evidence that consumer preference for higher quality fuels and stoves tends to increase with increasing wealth.

Keywords: Clean cooking stove; Discrete choice analysis; Bio-energy; Africa; Ethiopia; Consumer behaviour (search for similar items in EconPapers)
JEL-codes: C35 C93 I10 O13 Q53 R22 (search for similar items in EconPapers)
Date: 2012
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Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

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