Urban Household Energy Demand in Southwest Nigeria

Abstract

In response to changing prices, incomes and demographics, household use of various fuels such as electricity, gas, kerosene and fuel wood have changed over the years. In this paper we estimate income and price elasticities of household demand for various types of energy in urban southwest Nigeria. Household micro‐data was collected via the administration of a questionnaire. Empirical analysis showed that all energy goods are inelastic for own price elasticities and cross price elasticities. Most of the cross price effects are negative values indicating complementarity between energy goods. This suggests that substitution possibilities between energy goods are quite limited. However, kerosene is shown to be the main fuel used for cooking by about 90 per cent of households; the use of LPG and electricity is minimal. The income group analysis further shows that kerosene is preferred across all income groups. Budget share allocations reveal that households allocate a greater share of their income (40 per cent) to kerosene consumption while LPG gets the lowest share allocation of (3 per cent).

Cooking technology and female labor market outcomes in sub‐Saharan Africa

“…Second is the health implication of clean cooking technology, which is a direct determinant of individuals' productivity and economic input. As established in the literature, "dirty" cooking energy increases exposure to smoke-related health hazards and some chronic illnesses and other health problems, including several respiratory infections (Ajayi, 2018). These health challenges hamper labor input, and as concluded in Novignon et al (2015), individuals' health conditions have significant implications on their labor engagement.…”

“…For example, economic characteristics, such as GDP per capita (measured in constant 2010 US$ and associated with higher levels of development), FDI net as a percentage of GDP, and industrial development (gross fixed capital formation as a percentage of GDP) are expected to significantly affect female labor force participation, labor gender gap, and female unemployment rate (see Berrebi & Ostwald, 2014; Duflo, 2011). We include the population variables (total population and urban population growth) as a control for strain on female labor participation and demand for energy consumption that arises from the rising population in respective countries (Ajayi, 2018; Eshete, 1992). The fertility rate is associated with lower levels of female labor force participation because female engagement in household unpaid activities will increase with fertility rate, and it strains a country's available resources for productive economic activities (Berrebi & Ostwald, 2014).…”

Household cooking fuel choice: Evidence from the Republic of Benin

“…This pattern is similar to that of the developing countries in general. For instance, in developing countries, solid fuels (traditional biomass and coal) are often a source of household energy for cooking, especially in rural areas (Ajayi, 2018; Akpalu, Dasmani, and Aglobitse, 2011; Malla & Timilsina, 2014). Malla and Timilsina (2014, p. 7) state that “In developing regions, biomass‐based energy (bioenergy) for cooking is expected to remain significant in next 30 years.” So, there is a need for policies to shift from solid to modern fuels.…”

“…The adoption of cooking technologies and fuels may also be analyzed by referring to the energy‐ladder hypothesis which postulates that as long as their income increases, households not only consume more of the same good but they also shift to more sophisticated, higher‐quality goods (Ajayi, 2018; Nansaior, Patanothai, Rambo, & Simaraks, 2011; Ngepah, 2011; Rahut et al, 2014). Thus, the energy‐ladder hypothesis assumes that as their income (wealth) increases, households shift from traditional cooking stoves (traditional cooking fuels) to ICSs (modern cooking fuels).…”

Banking Sector Development and Energy Consumption in Nigeria: Exploring the Causal Relationship and its Implications

“…If banking sector development holds energy‐saving potential in the Nigerian economy, then strengthening the intermediary role of the banking sector would result in long‐term benefits including using less energy to achieve the same level of economic activities and reduction in environmental pollution in the economy. Second, despite the growing interest among researchers in understanding various aspects of energy demand in the Nigerian economy, none has considered the role of crude oil price in understanding energy consumption in the oil‐resource abundant economy (see Abila, ; Adewuyi and Adeniyi, ; Adom, ; Maji, ; Adewuyi, ; Keho, ; Rafindadi, ; Ajayi, ). This study fills this identified gap in the literature.…”