Understanding the socioeconomic determinants of cooking fuel expenditure in Uttar Pradesh, India

Poor people in a developing country like India face energy poverty and are deprived of clean cooking fuel. Clean cooking fuels are costlier and require more willingness to pay (WTP) from the consumer. Therefore, this is a descriptive study aims to analyze factors associated with differences in cooking fuel expenses at the household level in Uttar Pradesh, India. For this purpose, panel data from the Consumer Pyramids Household Survey of CMIE from 2014 to 2019 has been considered. The study uses fixed-effect panel data model to control individual-specific effects. Cooking fuel expenses show positive elasticity concerning per capita income. However, this elasticity is lower for the higher-income group than the bottom-income group. Less educational attainments of households are associated with lower spending on cooking fuel. Moreover, households with better access to electricity are willing to spend more on cooking fuel expenditure. Hence, improved access to electricity nudges households towards more WTP for cooking fuel. It is further confirmed by finding a positive association between electricity-using household appliances and cooking fuel expenses. Therefore, improved access to electricity may increase the WTP for cooking fuel and adopt clean cooking fuel in different ways. This suggests positive spillover effects of modern energy services on clean cooking fuel.