Does inward remittance influence the choice of households’ cooking fuel?

ABSTRACT

Among the Sustainable Development Goals is to ensure the consumption of clean and affordable energy by all by the close of 2030. Over the last decade, calls for energy transition from unclean energy to clean ones have intensified. Consequently, the price of clean energy has been subsidised in Ghana but this is not enough as energy transition still entails considerable costs for households. The receipt of inward remittance improves households’ income which can aid their transition but literature in this regard is scanty. Applying the Special Regression Method to household data from the Ghana Living Standards Survey, we examine how the receipt of income remittance influences the choice of households’ cooking fuels. We found an increase in income remittance increases the odds of households adopting clean cooking fuels. We recommend that the government of Ghana undertake policies that improve household income to encourage the adoption of clean fuels and reduce environmental pollution.

KEYWORDS:

• Cooking fuels
• energy transition
• Ghana
• households
• logit model
• remittances

JEL CLASSIFICATION:

• C25
• Q23
• Q42

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1 The AME was from the Average Index Function which is based on the special regression results which is presented in Appendix.