Impacts of rural energy costs and availabilities in Kenya

Abstract

This study sought to examine energy-consumption patterns in a cross section of rural households in Kenya and to analyze how these use patterns relate to socio-economic, demographic, institutional, and energy market factors. The models specified were demands for fuelwood, charcoal, kerosene, commercial heat energy, and aggregate energy. For fuelwood, a probit analysis was utilized to determine the conditional probability of fuelwood consumption and a least-squares regression to determine quantity consumed. Ordinary regression was used to estimate demand for the other fuels. The research indicates that household incomes, family size, improved ceramic stoves, other fuels, and occupation are the most influential variables on consumption of various fuels. The quantities of fuelwood, charcoal, and kerosene consumed are not very responsive to changes in income. Aggregate energy is income-inelastic and a normal good, while woodfuel and kerosene are inferior products. The model indicates that redirection of a 10% increase in income, so that only the low-income households benefit, would cause only a small, 1% increase in fuelwood consumption.