What are the drivers of sustainable energy transition? Insights from an empirical analysis of household preferences for electric induction cooking in Nepal

Abstract

Electricity as a clean cooking fuel is economically and environmentally efficient compared to other cooking fuels, and induction stoves are among the most efficient that could contribute to the sustainable energy transition. Nepal is rich in water resources, having resources four times higher than the global average. With increasing hydroelectricity generation, promoting induction stoves for cooking is a viable way to reduce the use of traditional fuels and Liquified Petroleum Gas imported from other countries. This study aims to identify the underlying product-specific factors influencing households’ preference for electric cooking using induction stoves and assess the impact of awareness about the benefits of induction stoves on choice probability. We used a randomized conjoint experiment along with a randomized controlled trial collecting primary data of 9500 choice responses from 950 households in the Nuwakot district of central Nepal to achieve the objective. Among the six product-specific factors considered in the conjoint analysis, monthly expenses and supply of electricity were found to be significant determinants for choosing electric induction cooking, while cooking time, sickness rate, and environmental conditions also had a certain degree of influence, whereas the effect of installation cost was found to be statistically insignificant. The lower bound of households' willingness to pay for electric induction cooking was found to be as high as 4% of their monthly income. The information treatment increases the uptake rate of the induction package by 5% and willingness to pay by 9.58%. This indicates the role of awareness and behavior change in driving a sustainable energy transition, highlighting the need for policymakers to promote cleaner cooking technologies through the effective dissemination of information The results of this study will enable policymakers to make informed decisions to promote the use of induction stoves as the primary cooking fuel, thereby contributing to efforts toward climate change mitigation.