Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/207506 
Year of Publication: 
2019
Series/Report no.: 
IZA Discussion Papers No. 12682
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We use two waves of nationally representative India Human Development Survey to examine factors driving the cooking fuel choice in urban and rural India, separately. We utilize a random effects multinomial logit model that controls for unobserved household heterogeneity. We find that a clean-break with the use of traditional fuels is less likely in rural areas, but more probable in urban areas. The household characteristics (e.g. income, education) that are positively correlated with use of clean fuel also increases the probability of fuel stacking for rural households. We also find that access to paved road is an important determinant for rural household adopting clean fuel, and there exists evidence of social spillover effects in rural areas. Moreover, the bargaining power of women that is associated with economic status (e.g. education or economic freedom) is positively associated with the use of clean fuel. Finally, we find considerable impact of liquefied petroleum gas prices on the probability of use of clean fuel for urban households, but no significant impact for rural households.
Subjects: 
fuel choice
fuel stacking
random eects multinomial logit
India
JEL: 
Q42
Q35
O12
O13
C25
Document Type: 
Working Paper

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