Household Energy Choice in Kenya: An Empirical Analysis of the Energy Ladder Hypothesis

Abstract

This paper investigates the odd ratio of selecting clean verses unclean source of energy as the main household fuel choice in urban areas using logistic functions through modelling of a binary dependent variable. Also, the research examines the important determinants of household fuel choice in urban Kenya. The data was obtained from KIPPRA’s data set on patterns of fuel use in Kenya. The study analysis was informed by energy ladder hypothesis and consumer behavior theory as the theoretical framework. Multinomial logistic estimation model was used to investigate the choices households make and patterns of cooking fuels in urban areas. From regression results income of household, cost of fuel and socio-economic factors were identified as the main factors explaining house fuel choice decisions. To accelerate use of clean residential fuel, the policymakers and government must carry out public education campaign, and ensure the accessibility and affordability of these fuels in urban areas to avoid harmful effects such as pollution and health problems fuelled by kerosene and biomass.