Babcock Journal of Economics: ISSN: 2734-2239

An Investigation into the Determinants of Household Energy Demand in Nigeria

Authors: Lawal Esther Omotola, Oluwateniola Shyllon ,

Pages: (1-14 )

Abstract

This study investigated the energy use patterns of households in Nigeria, as well as the socio-economic determinants of household energy demand in Nigeria. The factors include: Income of the Household, Size of the Household, Household Place of Residence, and Age, Educational Level, Gender, and Marital Status of the Household Head. This study utilized data from the 2018 Nigerian Demographic and Health Survey, obtained over the period of August – December, 2018. The data was estimated with the aid of a binomial multivariate logistic non-linear regression model using the Stata software (version 14.2). The Z-test and Pearson’s Chi-squared test revealed that the results of the model estimation were statistically significant. The goodness-of-fit of the model was ascertained with the Hosmer-Lemeshow test and the Adjusted McFadden’s Pseudo R-squared test. Female-led households, urban-based households, unmarried and divorced household heads, households with a member size ≤ 5, wealth level of the households, as well as the education level of the household heads had a positive relationship with the demand for clean energy, and a negative relationship with the demand for dirty energy. On the other hand, married and widowed household heads, households with member size greater than 5, age, male-led households and rural-based households had a negative relationship with the demand for clean energy, and a positive relationship with the demand for dirty energy. The study concluded that socio-economic factors influenced households’ demand for dirty and clean energy in Nigeria. It was recommended that the Nigerian government aim to subsidize clean energy technologies, embark on awareness-raising events on the effect of dirty energy use on households, as well as increase the income and education level of the households, to encourage the demand of clean energy by households in Nigeria.

Keywords: Energy Stacking Hypothesis, Household Income, Demographic and Health, Logistic Regression,

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