Analysis of Household Energy Expenditure in Umuahia North Local Government Area of Abia State, Nigeria

Year 2020, Volume: 4 Issue: 4, 466 - 475, 15.12.2020

Ifeanyı Moses Kanu , Igwe Obasi Kelechi Onwusanya

https://doi.org/10.31015/jaefs.2020.4.10

Abstract

Understanding household energy expenditure is important to encourage policies that support the provision of cleaner, efficient and cost effective sources of energy to households. This project analyzed household energy expenditure in Umuahia North Local Government Area (LGA) of Abia State, Nigeria. The available domestic energy commonly used by the households’ was kerosene, firewood, Liquefied Petroleum Gas (LPG), charcoal, and electricity. The most used domestic energy types was kerosene (1st), followed by Liquefied Petroleum Gas (2nd); then firewood (3rd) and charcoal (4th). Multiple regression result for the factors influencing household energy expenditure in the study area shows that five out of eight explanatory variables employed in the model significantly affected the respondent’s households’ energy expenditure. These variables were household size, sex, household income, education and frequency of cooking. Also, results from the ordered probit model shows that the significant variables influencing the choice of domestic energy expenditure was age and gender of the household head, their income level, educational level and occupation. Lack of financial resources, high cost of cleaner energy types and distance from the place of purchase significantly affected household energy expenditure in the study area. It is recommended that provision of cleaner, efficient and cost effective sources of energy be made available to households.

Keywords

Household Energy Expenditure, Liquefied Petroleum Gas (LPG), Ordered probit model, Umuahia North Abia State, Fuel-wood

References

• Abdullahi B, Musa A, Idi A, Adamu J, and Yusuf I U. (2017). “Socio - Economic Determinants of Households Fuel Consumption in Nigeria.” International Journal of Research - Granthaalayah, 5(10), 348-360.
• Abubakar, H. D., Rabiul, I., Shri Dewim A., (2015) An Analysis of the Determinants of Households’ Energy Choice: A Search for Conceptual Framework. International Journal of Energy Economics and Policy. Vol. 5, No. 1, 2015, pp.197-205. ISSN: 2146-4553
• Adepoju, O. A., Oyekale, A. S., and Aromolaran, O. (2012). Factors influencing domestic energy choice of rural households in Ogun State, Nigeria. J. Agric. Soc. Sci., 8: 129?134.
• Baiyegunhi, L. J. S., and M.B. Hassan. 2014. “Rural household fuel energy transition: Evidence from Giwa LGA Kaduna State, Nigeria.” Energy for Sustainable Development 20: 30–5
• Brew-Hammond A, and Kemausuor F. (2009) Energy for all in Africa — to be or not to be? Curr Opin Environ Sustain 2009;1:83–8.
• Campbell, B.M., Vremeulen, S.J., Mangono, J.J., Mabugu, R., (2003). The Energy Transition in action: Urban Domestic Fuel Choice in a changing Zimbabwe, Energy Policy 31, 553 – 562. "How much electricity does an American home use?". US Energy Information Administration. EIA. Retrieved 31 May 2017
• Chukwuezi, O. C (2009). Gender and Renewable in Rural Nigeria. International NGO Journal. 2009; 4 (7): 333-336.
• Gebreegziabher, Z, Alemu M, Menale K, and Gunnar K. (2012). “Urban energy transition and technology adoption: The case of Tigrai, northern Ethiopia.” Energy Economics 34 (2): 410–8.
• Gupta, G, and Köhlin G. (2006). “Preferences for Domestic Fuel: Analysis with Socio-Economic Factors and Rankings in Kolkata, India.” Ecological Economic Journal 57 (1): 107-21.
• Ibidun O. A., and Afeikhena, T. J. (2006) Dynamics of Household Energy Consumption. Department of Economics, University of Ibadan, Nigeria.
• Igbinovia, S.O. and P.E. Orukpe, 2007. Rural electrification: the propelling force for rural development of Edo State, Nigeria. J. Energy Southern Africa, 18: 18‒26 International Energy Agency - IEA (2014). World Energy Outlook. Paris: OECD, 38: 247?247.
• Julius, A. (2013). Households’ Access and Preference to Cooking Fuels in Abuja, Nigeria. Journal of Environmental Science and Technology 6, 91-98.
• Kowsari, R., and Zerriffi, H. (2011). Three dimensional energy profiles: A conceptual framework for assessing household energy use. Energy Policy 39, 7505–7517.
• Mekonnen, A., Kohlin, G. (2008), Determinants of Household Fuel Choice in Major Cities in Ethiopia. University of Gothenburg, School of Business, Economics and Law, Working Paper in Economics No. 399.
• Momodu, I. M. (2013) Domestic Energy Needs and Natural Resources Conservation: The Case of Fuelwood Consumption in Nigeria. Mediterranean Journal of Social Sciences MCSER Publishing, Rome-Italy. ISSN 2039-2117. Vol 4 No 8. Doi:10.5901/mjss.2013.v4n8p27
• Muller, C. and Huijie, Y. (2016) Household Fuel Use in Developing Countries: Review of Theory and Evidence. Ce WP a fait l’objet d’une publication in Energy Economics, Elsevier, 70, pp.429 -439.
• Njong, M. A and Johannes. T. A (2011). An Analysis of Domestic Cooking Energy Choices in Cameroon. European Journal of Social Sciences, 20 (2), 22-31.
• Nlom, J. H., and Karimov, A. A. (2014). Modeling fuel choice among households in rural Kenya : The case of Kisumu district. Agrekon, 45, 24–37.
• Nnaji, C. E., Ukwueze, E. R. and Chukwu, J. O. (2012). Determinants on energy, Enugu, Nigeria. Continental Journal of Social Sciences 5(2): 1-11
• Onoja, A. O. (2012). Econometric Analysis of Factors Influencing Fuelwood Demand in Rural and Peri-Urban Farm Households in Kogi State, Nigeria. The Journal of Sustainable Development, 8(1):115 – 127.
• Ouedraogo B. (2006) Household Energy Preferences for Cooking in Urban Ouagadongou, Burkina Faso” Energy Policy. 2006; 34 (18): 3787-3995.
• Rahut, Dil B, Sukanya D, Hugo D G, and Bhagirath B. (2014). “Determinants of household energy use in Bhutan.” Intl Energy Journal. 69: 661-72.
• Sambo, S. A (2009). Strategic Development in Renewable Energy in Nigeria. International Association for Energy Economics 3rd quarter.
• Togola, I., (2005). Renewable Energy Solution Perspectives for Africa. Mali-Folkecenter
• Wange, Z and Bessler, D. A. (2006) The Homogeneity Restriction and Forecast Performance of VAR, Type Demand System, An Empirical Examination of U.S Meat Consumption. J Forec. 2002;21:193-206.
• Yamamoto, S., Sie, A., and Sauerborn, R. (2009). Cooking fuels and the push for cleaner alternatives: a case study from Burkina Faso. Global Health Action 2009.