Fuel choices and fuelwood use for residential heating and cooking in urban areas of central-southern Chile: The role of prices, income, and the availability of energy sources and technology

Abstract

This paper empirically analyzes the determinants of fuel choices and intensity of fuelwood use for residential heating and cooking in central-southern Chile. By using information from a sample of 2761 households in nine urban areas, we first investigate households’ choices of the main fuel used for heating by means of multinomial models. Then we examine the intensity of fuelwood use through fractional probit models. These models allow analyzing the interdependence of fuel use by households, while taking into account households’ individual heterogeneity. Our results indicate that households’ fuel choices are mainly driven by socioeconomic and dwelling characteristics. Moreover, while there is a component of fuelwood use that cannot be influenced by energy policies, such as meteorological conditions across the country, there are a number of characteristics that influence the share of the households’ energy production which is generated by fuelwood. These factors range from socioeconomic characteristics to the households’ perceptions regarding the link between air pollution and use of fuelwood, which presents an opportunity for designing future policy interventions aimed at incentivizing the adoption of cleaner devices.