Who adopts LPG as the main cooking fuel and why? Empirical evidence on Ghana based on national survey

Type Working Paper - CERE Working Paper
Title Who adopts LPG as the main cooking fuel and why? Empirical evidence on Ghana based on national survey
Author(s)
Issue 2016:9
Publication (Day/Month/Year) 2016
URL http://www.cere.se/documents/wp/2016/CERE_WP2016-9.pdf
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.

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