Department of Economics, Wolkite University, Gubrei, Ethiopia
Does the Pattern of Energy Use in Ethiopia Follow Fuel Stacking Hypothesis in Woliso Town?
Author(s): Hundaol Abdissa*
This study analyzed whether pattern of fuel use follow the fuel stacking hypothesis and factors that affect household fuel use in Woliso town by using cross-sectional data of 2018 for different sources of energy using the Linear Approximation Almost Ideal Demand System (LAAIDS). An estimate of the model is constrained to comply with neoclassical theoretical restrictions on demand, and the model is estimated using Iterative Seemingly Unrelated Regression (ISUR). The result shows that households do not completely switch to consumption of new energies as the energy ladder hypothesis suggests rather diversify their energy consumption in a process of fuel stacking (energy mix). Additionally, the expenditure elasticity’s of demand for energies are expenditure elastic. Not only this, but also, the cross-price elasticity’s of demand for energy sources indicate th.. Read More»