An Analysis of the Determinants of Households' Energy Choice: A Search for Conceptual Framework

Abstract

The aim of this paper was conceptual analysis of the determinants of household energy choice and consumption in order to provide information on current understanding of the pattern of household energy consumption behaviour in developing countries. Data for this study was obtained from existing literatures on household energy demand and the economic impact of energy as well. The methodology heavily relied on existing previous literatures on the subject being dealt with. The paper showed that previous studies (individually) used various but limited econometric models for analysing household energy consumption behaviour which limit the scope of their analysis. Variables like; degree days, electric water heater, electric clothes dryer, dish washer, number in house, family income, age of respondents, nature of employment, municipality of residence, expenditure per capita, private water connection, age of household head, were found to be positively significant related to household energy choice and consumption. The paper concluded that, not all factors are equally important in explaining household consumption behaviour for different areas. Finally, the paper pointed out three important aspects to be covered by future studies on household energy, choice, and consumption. Keywords: Households; Energy choice; Consumption; Determinants; Conceptual Framework JEL Classifications: Q20; Q30; Q40