A successful fuel transition? Regulatory instruments, markets, and social acceptance in the adoption of modern LPG cooking devices in Indonesia

Abstract

In 2004, almost half of Indonesian society was dependent on firewood for fuel. Following the implementation of a policy to substitute kerosene use with Liquefied Petroleum Gas (LPG) in 2007, there was a significant improvement in LPG use from 10.5 percent to 47 percent of households, whilst kerosene use fell significantly from 36 to 9 percent from 2007 to 2011. There was also a 10 percent reduction in the number of households using firewood. This paper investigates LPG adoption by households who previously relied on kerosene and firewood from two perspectives: the institutional perspective, and social acceptance. Semi-structured interviews with representatives from central government to local government in addition to members of the public in six regions in Java and Sumatera were conducted. Findings indicate that the central government’s commitment to implement the substitution policy—alongside effective regulatory instruments, financial support and infrastructure—was critical to the success of the policy. Meanwhile, from a household perspective the reasons behind adoption of LPG were favourable prices, as the result of subsidies and incentives; energy market lock-in; social trust and norms; government communication and campaigns; and favourable appliance characteristics and/or kitchen design. However, there were also LPG resisters who maintained the use of firewood rather than adopting LPG. Safety concerns, cooking preferences and habitual practices were identified as the main determinants of LPG resistance. Understanding the reasons underlying cleaner fuel acceptance or resistance is essential for policy makers to determine successful regulatory pathways to improve fuel quality for better quality of life.