Validity of Energy Ladder Hypothesis through Types of Residence: An Ordered Probit Analysis for Indian Households

Abstract

This study attempts to examine the role of the nature of residence of households as a determinant of their primary cooking fuel choices in India. Using an ordered probit model, we highlight the significance of the economic and social status of the households in driving their primary cooking fuel choices. This study has used India Residential Energy Survey (IRES) 2020 data for the analysis. Our findings suggest that as households shift from kutcha houses to semi-pucca houses or from semi-pucca houses to pucca houses, the probability of using clean fuel, such as liquefied petroleum gas (LPG) and electricity, increases by 8.76 per cent. We also find that household income level, educational attainment of primary earners and members and household location have a positive association with cleaner fuel consumption, whereas household size exerts a negative influence on modern modes of fuel usage. Our study has significant policy implications for government agencies and policymakers in implementing initiatives that encourage infrastructure and household welfare programmes. These policies can have positive spillover effects on population health and environmental improvement through cleaner fuel consumption.

JEL Codes: C25, C35, D12, Q40