IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 5 NO. 2 2019

---

Households’ Energy Demand in Ondo State, Using Almost Ideal Demand System (AIDS) Approach.

Olubokun, Sanmi, Agbede, Moses Oyeyemi AND Aladejana, Saheed Aliu

---

Abstract

The study examined households’ energy demand in Ondo State between January 2016 to February 2017 while the impact of price and income elasticity of the consumer on their energy demand was also investigated. Almost Ideal Demand System (AIDS) was applied with stratified random sampling technique for empirical analysis. The study examined 223 responses through primary data generated on usage of energy products. The findings showed that electricity (0.98) and kerosene (0.94) are necessities since their coefficients were less than 1. The result further established that Diesel (1.01), Petrol (1.02) and Gas (1.01) are luxuries since their elasticities are greater than 1. The findings revealed that estimated expenditure elasticities were all positive and statistically significant at 5% significant level, indicating that all the selected energy products are normal goods. The study discovered that apart from the major occupations of the respondents, other households’ demographic variables were not significant in determining energy demand. Therefore, the study recommended that policy-makers should consider variations in the coefficients of elasticities of each energy product in making policy decisions

keywords:

Energy, Households, Demand, AIDS, Elasticities

---

References:

Adegbulugbe, A. O. and Akinbami, J. F. K. (1995). Urban Household Energy Use Patterns in
Nigeria. Natural Resource Forum. 19 (2): 125-133.

Adetunji, M.O, Adesiyan, I.O and Sanusi. W.A. (2007). Household Energy Consumption
Pattern in Oshogbo Local Government Area of Osun State. Pakistan Journal of Social
Sciences 4 (1) 9-13.

Arowosoge, O. G. E &Faleyimu, O. I (2011). Assessment of Household Energy Utilized for
Cooking in Ado-Ekiti Metropolitan Area of Ekiti State, Nigeria. International Journal of
Academic Research3:151-155

Babanyara,Y.Y., Saleh U.F. 2010.Urbanisation and the choice of fuel wood as a source of
energy in Nigeria. J Hum Ecol, 31(1): 19-26.

Bello Maryam (2010), Impact of Wealth Distribution on Energy Consumption in Nigeria: A
case of selected households in Gombe State. International Association for Energy
Economics, 30th Conference, Washington D. C

Bello, N.J. (2010). Climate Change: Implications for Food Production and Security in Nigeria.
In Climate Change Impacts and Adaptation: Developmental Issues. A Special Book on
Climate Change. Published by Nigerian Meteorological Society. Pg. 4.

Faye,S. 2002. Households’ Consumption Pattern and Demand for Energy in Urban Ethiopia.
M.ScThesis. Addis Ababa University, Ethiopia.
Farsi, Mehdi, Massimo Filippini, &ShonaliPachauri (2007). Fuel Choices in Urban Indian
Households. Environment and Development Economics 12 (6): 757–774.

International Energy Agency(IEA) 2006. World Energy Outlook. Paris: OECD 38(4):247.
Mekonnen, A. and Köhlin G. (2008). Determinants of Household Fuel Choice in Major Cities
in Ethiopia. Environment for Development Discussion Paper Series, EfD DP 08-18.

Njong, M. A. and Johannes. T. A. (2011). An Analysis of Domestic Cooking Energy Choices
in Cameroon. European Journal of Social Sciences. 20(2), 22-31.

Okunade, E. (2010). Charcoal as an Alternate Energy Source among Urban Households in
Ogbomoso Metropolis of Oyo State. LadokeAkintola University of Technology,
Ogbomoso. Retrieved
fromhttp://www.appropriatetech.net/files/Charcoal_as_an_Alternate_Energy_Source_a
mong_Urban_Households_in_Ogbomoso_Metropolis_of_Oyo_State.pdf

Ogunleye, E.O. and Ayeni, R.K.(2012).Energy Demand in Nigeria: A disaggregated Analysis.
International Research Journal of Finance and Economics. Vol 86

Onyekuru, N. A.&Eboh, E. C (2011) Determinants of Cooking Energy Demand in Rural
Households of Enugu State; An Application of the Bivariate Probit Model. Asian Journal
of Biological Science, 2(2), 332-335.

Pundo, M. O and Fraser G. (2006) Multinomial Logit Analysis of Household Cooking Fuel
Choice in Rural Kenya: The Case of Kisumu District. l45 (1), 24-37.

Shaad, B., Wilson E .2009. Access to Sustainable Energy: What Role for International Oil and
Gas Companies? Focus on Nigeria. London: IIED.

Shittu, A. M; Idowu A. O; Otunaiya A. O & Ismail A. K (2004) Demand for Energy Among
Household in Ijebu Division, Ogun State, Nigeria. Agrekon, Vol. 43 No1

Smil 1990. Renewables and Energy for Rural Development: New and Innovative ways of
delivering Energy Services to the Rural Areas.
World Energy Council 1999. The Challenge of Rural Energy Poverty in Developing Countries.
London, United Kingdom: World Energy Council

DOWNLOAD PDF

---

Back