Determinants of adoption of cleaner cooking energy: Experience of the Pradhan Mantri Ujjwala Yojana in rural Odisha, India

Since its inception, the Pradhan Mantri Ujjwala Yojana (PMUY) of the Government of India has provided subsidized liquefied petroleum gas (LPG) connections to many poor households for enhancing use of LPG as a cooking fuel. However, along with such large LPG connections, it is also necessary to understand how the beneficiaries have adopted the same. This paper examines beneficiary households’ response to the PMUY in respect of actual use of LPG and identifies the underlying factors in rural areas of the Indian state of Odisha. Using descriptive statistics and estimating limited dependent variable models the paper finds significant positive impact of household heads’ education and amount of subsidy on actual use of LPG, whereas general category households have lower adoption of the same. Further, greater availability of kerosene also limits adoption of LPG. Importantly, household income does not influence adoption of this cleaner fuel. The findings of the paper, therefore, have significant implications for fine tuning of policies and institutions towards cleaner energy transition in rural India, particularly in respect of enhancing relative price and awareness about benefits of LPG and its delivery mechanisms.