Tenancy and energy choice for lighting and cooking: Evidence from Ghana

Abstract

This study uses a national household living standard survey and bivariate probit to assess how variations in tenure mode influence the choice of energy sources for lighting and cooking. Results indicate that tenure mode has heterogeneous effect on the lighting and cooking energy choice. Relative to owner-occupied unit, renters use other fuel (firewood, candle, and crop residue) for lighting and use modern (LPG), transition (charcoal), and other fuel (electricity, crop residue, kerosene, sawdust, and, animal waste) for cooking. By dividing the sample into income quartiles, the results showed that renters in the fourth quartiles use electricity and LPG (modern fuel) but less likely to use dirty fuel (fuelwood) for cooking. Tenancy agreement, ownership right and preferences, and the structure of a building are the plausible mechanism that may be accounting for the heterogeneity in the adoption of lighting and cooking energy sources. The empirical implications of the results are discussed.