What determines household cooking fuel preferences? Empirical evidence from South Korea

Abstract

This study examines the determinants of modern cooking fuel choices in Korea. The ordered probit model is estimated using an extensive online survey of Korean household energy consumers. Our empirical results showed that age, gender, and education are significant determinants of modern cooking fuel choices among the socioeconomic demographic variables: females, older people, and highly educated people are more likely to prefer electricity. Also, electricity is more likely to be preferred over natural gas by people who have a higher preference for district heating. Two psychological factors significantly influence cooking fuel choices. People whose behaviors are environment-friendly and people who are more health-conscious are more likely to prefer electricity over natural gas or propane. There are three important insights into the cooking fuel transition toward electricity. First, as interest in health and climate change has significantly increased in recent years in Korea, it may stimulate the transition from natural gas or propane to electricity. Second, electrification of cooking methods will be beneficial for the environment if electricity generation becomes less carbon-intensive. Since electricity in Korea is mainly generated by fossil fuels, it is crucial to implement more aggressive policies toward renewable sources in the energy mix for electricity generation. Third, the public should better understand why this problem cannot be overlooked because the energy mix is important in mitigating climate change. The better the people understand the exact relationship between energy consumption and pollutant emissions, the more effective and environmentally sound will the energy mix policy become.