Effects of Relative Pricing of Alternative Cooking Energy Sources on Their Substitution: A Comparative Analysis of Rural and Urban Households of Enugu State, Nigeria
AbstractIn recent years, much attention has been directed to finding solutions to the ongoing increase in the use of unclean cooking energy sources, which is especially the case among households in the developing nations. This study was therefore conducted to investigate the effects of relative pricing of alternative cooking energy sources on their substitution. This study was conducted in Enugu State using primary data collected from two hundred and four respondents from rural and urban areas of the state, using structured questionnaires. The information collected were socio-economic characteristics of the households, pattern and levels of energy use, relative pricing of alternative energies and energy substitution pattern. Data were analyzed using multiple regression analysis and Chow test. Results show that the energy sources used in the rural areas are fuelwood (51.5%) and kerosene (48.5), while those used in the urban areas are fuelwood (30.6%), charcoal (31.6%), kerosene (33.7%) and liquefied petroleum gas (4.1%). There was a relative cross inelastic nature of the energy sources. The price of fuel wood varied inversely and directly with quantities of kerosene demanded in the rural and urban areas, respectively, while the price of charcoal had an inverse relationship with the quantities of kerosene consumed in both the urban and rural areas.
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