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Journal of Finance & Economics Research - Volume 6, Issue 2 2021
By Naseer Babangida Muazu, Sani Saidu, Yahaya Saleh Ibrahim
10.20547/jfer2106202
Keywords: Energy transition, demographic variables, fuel-wood consumption, influence, Western Cape Province.
Despite the attainment of 87% electricity access, majority of the middle and low-income households in South Africa are faced with the huge challenge of transition from fuel wood to electricity for domestic activities especially cooking and heating. This article highlights the role of demographic variables in household decisions to use fuel wood instead of electricity in the Province of the Western Cape. We employed a quantitative cross-sectional survey design and a two-stage stratified random sampling technique to capture 1199 respondents using Enumeration Areas (EAs) demarcated to the province for the 2011 Census. Using chi-square and multivariate analysis, the outcome of the study shows a significant relationship and causality between choosing fuel wood as an energy source and household living circumstances such as marital status, education level, and age. From the results, it is indicative that a clear linkage exists between household living circumstances and consumption of dirty energy. To achieve a smooth transition from fuel wood to electricity, the study recommends policies that would influence household behavior such as investment in human capital and environmental education.