ABSTRACT

The principal objective1 of this study was to determine the level of substitution in the study area. The related objectives were to determine factors that influence households energy expenditure, identify energy types operations and to determine the factors that affect household energy basket and preferences. With a view to deriving policy implications there from. Data were collected from the primary sources using structured questionnaire. Data were collected on Soclo-economic characteristics of the study area and energy type, energy prices and quantities consumed, reasons for choice of energy operations and appliances used by household, and problems of sourcing. Data were analysised using descriptive statistics, such as mean, percentages and frequency distributions, Chi-square statistics, as well as ordinary least squares regression technique, of energy and income elasticity were used to determine the substitution level. While the ordinary least squares regression model-was used to estimate the determinants of household energy expenditure. The income elasticity showed normal energy types in rural area and urban area. The Chi-squares test showed differences between any operation and energy types in the study area both rural and urban. This could be attributed to factors that affect energy axpenditure. The regressional x result on energy expenditure identified cost of choice energy type as the major factor in urban and rural area. Problems affecting energy sourcing was identified as a major factors affecting or influencing energy expenditure in the rural area. Recommendations were made on re-introduction of petroleum energy subsidy and increase In rural electrification, Improvement on supplies of energy source and distribution facilities, and establishment of fuelwood lot or briquettes of wood waste to discourage excessive forest exploitation.