Friday, February 3

Explaining household expenditure on cooking fuel: Role of income and Socio-economic status

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By Salman Haider

Working Paper No- 454

This study aims at analysing the determinant of cooking fuel expense at household level in Uttar Pradesh (UP). For this purpose, panel data from CPHS (CMIE) and the household fixed effect model have been used. As clean cooking fuel demands larger expenditure, it is expected
that higher expenses on cooking fuel represent transition to clean cooking fuel. Cooking fuel expenses show positive elasticity with respect to per capita income. However, this elasticity is lower for the higher income (consumption) group than for the bottom income group. Looking at the caste angle, schedule tribe (STs) spend less while the general caste and schedule castes (SCs) spend more as compared to the other backward castes (OBCs). Households with less educational attainments show lower spending on cooking fuel, while households with better electricity access unravel a higher propensity. This suggests positive spill-over effects of modern energy services on clean cooking fuel. Finally, the present study has implications for designing policies to penetrate LPG as cooking fuel.

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