The impact of the household decision environment on fuel choice behavior

Consumer preferences for fuels and alternative cookstove technologies in Kenya are examined, focusing on household internal and external determinants driving choice behavior in a choice experiment. The potential for a transition towards cleaner and more efficient fuels and technologies is assessed by zooming in on three fuel-stove combinations. We find substantial demand and positive willingness to pay for the fuel-stove combinations in three locations representing different decision environments. Demand is significantly higher in the peri-urban and the resource abundant rural location than in the resource scarce rural location. The presence of better developed consumer markets for fuels in these locations functions as an important driver for cookstove adoption. Although charcoal and ethanol stoves are preferred over improved firewood stoves, continued firewood usage is expected. Energy switching behavior cannot be substantiated. Instead, energy stacking is more likely, where charcoal and ethanol add to and extend a household’s energy portfolio.