A Choice Experiment Study on Fuel Preference of Kibera Slum Households in Kenya

In Kenya, charcoalis an important energy resource for cooking. As better energy alternatives become available and affordable in developing countries, households tend to switch from traditional biomass to modern fuels such as liquid petroleum gas, kerosene, and electricity.Meanwhile, fuel briquettes recycled from charcoal dust are gaining popularity as alternate fuel in urban poor households. The valuing of energy services is important for policy planning and for improving the socioeconomic conditions and environments of households. The objective of this study is to better understand the relative importance of fuel substitution, especially with regard to charcoal, fuel briquettes, and kerosene, and the factors associated with their choice. To estimate the product-specific factors, we conduct a choice experiment study in Kibera slums of Nairobi, Kenya, by applying a conditional logit model and random parameter logit model. The study revealed household preferences for modern energy sources and several characteristics affecting consumer choice.