A choice experiment study on the fuel preference of Kibera slum households in Kenya

Abstract

In Kenya, woody biomass, especially the charcoal derived from it, is an important energy resource for cooking. As better energy alternatives become available and affordable in developing countries, households tend to switch from traditional biomass to modern fuels such as liquid petroleum gas, kerosene, and electricity. This fuel-switching pattern is often called the 'energy ladder', the ladder steps representing upgrades in the quality of energy services. Meanwhile, fuel briquettes recycled from charcoal dust are gaining popularity as an alternate fuel in urban households facing problems of waste management. The valuing of energy services is important for policy planning and for improving the socioeconomic conditions and environments of households. The objective of this study is to assess the current energy use status of the urban poor in Kenya. More specifically, the study aims to better understand the relative importance of fuel substitution, especially with regard to charcoal, fuel briquettes, and kerosene, and the factors associated with their choice. To estimate the product-specific factors, we conducted a choice experiment study of households in the Kibera slums of Nairobi, Kenya, by applying a conditional logit model to identify the various socioeconomic characteristics that determine household preferences for cooking fuels. The study revealed household preferences for modern energy sources and several characteristics affecting consumer choice.