Discussion Paper No. 102 of 2009 on Enhancing Household Fuel Choice and Substitution in Kenya

Abstract

This study looks at the fuel choice and fuel substitution in Kenya. It focuses on three issues: it analyzes the factors influencing households’ fuel of choice; it studies the factors influencing woodfuels expenditures; and, it investigates the factors that influence substitution from either traditional or transitional fuels to modern fuels. Theoretically, the study is founded on the basics of the energy stack model, where households are hypothesized to combine fuels rather than to switch completely to other fuels following a shock, as predicted by the energy ladder model. The study analyzed a sample of 13,158 observations using cross-sectional data from the Kenya Integrated Household Budget Survey conducted in 2005/2006...