The demand curve for LPG Among Rural Households

July 9, 2021 | Completed Project | Reading time: 3 min

Start Date:15-02-2021
End Date: 30-11-2021
Funders:Columbia World Projects and J-Pal, Columbia University, University of California, Santa Barbara,

With a focus on the demand side factors for clean fuel use, this study assessed if demand for LPG in rural Ghana is price elastic, and by how much - by providing different levels of LPG price subsidies for participants. Using a study design that allowed the market conditions in the trial to approximate purchasing options under the cylinder recirculation model (CRM).

The study also ascertained if demand for LPG among rural households is influenced by distance - by allocating participants to varying distances to points of LPG supply. Besides price and distance, we also explored others factors that could affect demand for LPG such as availability, prices of alternative cooking fuels and income levels.