AN EMPIRICAL ANALYSIS OF HOUSEHOLD ENERGY CHOICE IN GHANA

This paper investigates household cooking energy choices and their determinants in Ghana using a nationwide household survey data. The underlying empirical model was estimated using the ordered probit model. The results show that biomass is by far the most predominant source of energy for Ghanaian households. Biomass energy is the main source of cooking fuel in Ghana used by 89.2% of households compared with 10.8% which use modern energy sources such as LPG, electricity and kerosene for cooking. The findings of the paper also lend support to the energy ladder hypothesis that household income is a major determinant of household energy choice. Further, social and demographic factors as well as access to energy supplies are key determinants cooking fuel type in Ghana. We thus recommend intensification of income poverty reduction programs to boost households’ incomes. The benefits of such a policy will be to move majority of households towards the upper rungs of the energy ladder. This then implies a move away from over dependence on biomass to clean and modern energy sources such as LPG and electricity. Important component of energy policy will involve measures to remove supply side constraints to ensure regular supply of LPG households.