Demand response for selected cooking fuels in oyo state

The high population growth and the low purchasing power of Nigerians dictate their demand. Therefore, this study evaluated demand response (elasticity) for cooking fuels, in the urban areas of Oyo State. The study analyzed; socio-economic characteristics of household, household expenditure on selected cooking fuels, own price, cross price and income elasticity of demand for selected cooking fuels. Systematic sampling procedure was employed to select 150 respondents (household heads). The primary data were subjected to descriptive statistics and the Linear Approximate of Almost Ideal Demand System (LA/AIDS) model. This study revealed an average household size of 5. The income elasticity was -0.04E-03, 0.02 and 3.0 for fuel wood, Kerosene and cooking gas respectively: thus, fuel wood was an inferior commodity; kerosene was a necessity while, cooking gas was a luxury. The result of the cross elasticity indicated that the cooking fuels (fuel wood, Kerosene and cooking gas) were substitutes. It was concluded that the demand of kerosene and cooking gas should be encouraged at expense of the demand for fuel wood. This was to encourage a forestation.

Author: 
Adeniyi, O. A., Alabi, A. A., Kayode, A. O. and Orimafo, P. K.
Volume No: 
01
Issue No: 
03
Paper Number: 
0012
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