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Household Socioeconomic Determinants of Clean Cooking Program in Ecuador

Abstract:

Ecuador is a developing South American country that has highly subsidized liquid petroleum gas (LPG) since 1974. Between 2015 and 2020, LPG subsidies amounted to 260 M USD annually. In 2014, the Ecuadorean government implemented a clean cooking program, to encourage the replacement of LPG with electricity, mainly through induction stoves. However, the engagement rate in this program was lower than initially expected. This work investigates the socioeconomic and sociodemographic determinants of using various cooking technologies in Ecuador, including induction stoves. We use official Ecuadorian household surveys from 2015 to 2017 to gather information on gender, age, marital status, educational level, ethnicity, income family, family size, urban area, and province of residence. We then perform two econometric analyses, one using a probit model to study the determinants of having an induction stove, and the other employing a multilogit model to investigate the sociodemographic characteristics associated with the use of different cooking technologies, namely LPG, firewood, and electricity. Our results indicate that non-married individuals, Indigenous people, the poor, and those living in rooms or apartments with poor housing conditions show the lowest likelihood of having an induction stove. Moreover, the most disadvantaged groups still prefer firewood instead of the highly subsidized LPG barrels. We also find important differences across provinces. Our results give rise to several policy recommendations. Clean cooking programs should have a more regional approach and consider specific subsidies for the most disadvantaged groups. Moreover, the successful implementation of clean cooking programs may require the implementation of specific social programs targeting households that still use firewood. Otherwise, these clean cooking programs may become regressive and only benefit the wealthier households.