This paper presents the household energy consumption trends and alternatives
for Addis Ababa, Ethiopia. The study shows that, during the decade that the study
was conducted, household energy consumption per capita increased by 17% from
6GJ. Traditional fuels accounted for about 80% of the consumption. Household
energy expenditure per person tripled from $10 to $30. The energy consumption
trend is highly correlated with fuel price; in 1995, charcoal was the most expensive
fuel (?$7 per GJ), followed by LPG and electricity (?$5 per GJ). Kerosene was sold
at about half the price of charcoal, while fuelwood was the least expensive (?$1 per
GJ). In 2005, charcoal prices increased by about 20%, while fuelwood price
declined by more than 10%. The price of electricity doubled while that of kerosene
tripled and LPG quadrupled. Despite the rise in price, electricity consumption shot
up by a factor of twenty, and kerosene declined by half. During the decade,
traditional fuel use increased by 10% while modern energy use increased by 50%.
The paper also considers the potential explanations and policy implications of the
trends in the data.