Household Energy Consumption in Nigeria: A Review on the Applicability of the Energy Ladder Model

Abstract

Household energy consumption dynamics in developing countries is often conceptualized through the Energy ladder model and assumes that with increasing income, householders will have a preference to cleaner energy. This paper reviewed various energy sources for household consumption and examines the implications of their dependence on traditional energy sources as well as the energy ladder model as a concept widely used by  scholars in describing the role of income in determining energy use and choices. It further explains the consumption behaviour of households in relation to the major assumptions of the model. The paper posits that the dependence on energy sources at the lowest rung of the energy ladder by most households in Nigeria is accentuated by rising poverty level consistent with the energy ladder hypothesis but disagrees with the notion of complete fuel substitution given that most households tend to have a mix of energy sources for their activities It recommends that government and other stakeholders should formulate policies that will foster the use of modern energy sources with a view to mitigating the environmental and health externalities of traditional energy use as well as improving the quality of human lives.

Keywords: Households, energy consumption, energy ladder model, income