What determines coal consumption for residential heating in Kazakhstan and the Kyrgyz Republic?

ABSTRACT

Solid fuels, such as coal and firewood, account for a large share of residential heating fuel consumption in Kazakhstan and the Kyrgyz Republic. Solid fuels used for residential space heating are a major source of indoor air pollution, which impose health risks. Using microdata from the national household surveys from Kazakhstan in 2018 and the Kyrgyz Republic in 2016, this study examines the factors affecting the choice of residential heating. We employ two models: logit and double-hurdle. The results show that access to cleaner and more modern energy infrastructure such as natural gas pipelines and district heating reduces solid fuel consumption, especially in rural areas. Regions with higher coal prices prefer cleaner heating, while regions with higher electricity prices are more likely to participate in the coal markets. Female-headed households are less likely to use coal.

KEYWORDS:

• Residential heating
• coal consumption
• Kazakhstan
• the Kyrgyz Republic
• energy access
• double-hurdle model

Acknowledgement

Authors are grateful to comments from journal editor, guest editor and three anonymized external reviewers. Authors also appreciate comments from participants of the Asian Development Bank Institute Virtual Workshops on ‘Meeting Environmental Objectives Through Energy Sector Reforms in Asia and the Pacific: Energy Pricing Reforms and Emissions Reduction’ on 22–24 June 2020 and on ‘Effective Greenhouse Gas Emission Control Policies’ on 25–27 August 2021. The views expressed in this paper are the views of the authors and do not necessarily reflect the views or policies of the Asian Development Bank Institute (ADBI), the Asian Development Bank (ADB), its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.

Disclosure statement

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

Notes

1 Degree-day of the heating period (HDD) is an indicator equal to the product of the difference between the internal air temperature and the average outside air temperature for the heating period by the duration of the heating period.

2 Distinguishing between households that use solid fuels as their primary fuel and non-primary fuel in Kazakhstan is not possible due to the lack of data.

3 Measured as USD 3.20 per day, 2011 PPP.