Mapping the Household Energy Transition: Determinants, Measurement Approaches and Policy Lessons

Abstract

Energy transition is vital for developing countries, as their households rely on inefficient and dirty fuels, creating negative impacts on the environment. Urbanization, income growth, and demographic change are reshaping consumption patterns. Therefore, this study analyzes existing literature to examine the key drivers and patterns associated with household energy transition. Quantitative review approach is used to synthesize the literature on household energy transition. Under this approach, we reviewed cross-sectional and panel studies employing the methodologies of the multivariate probit model, multinomial logit model, Lewbel 2SLS, and MDCEV methods. The findings highlight that the transition process is influenced by a multidimensional set of factors, including household characteristics, market access, socioeconomic conditions, behavioral aspects, environmental concerns, and government policies. Household income, education, and policy incentives are among the significant factors associated with cleaner fuel adoption. Policy should expand access to clean energy, improve affordability through targeted subsidies, and strengthen rural infrastructure.