Transitions from dirty to clean energy in low-income countries: insights from Kyrgyzstan

Air pollution from the burning of fossil fuels in developing counties is a global challenge due its climate change and health effects. Dirty fuel and air pollution have become a serious issue in many Central Asian countries. This article studies the factors that affect household decisions to transition from dirty energy to clean modern fuels using panel data from Kyrgyzstan. The article argues that the choice of fuel depends on a number of endogenous and exogenous factors. Contrary to the conventional wisdom of the 'energy ladder' hypothesis, high income does not lead to a full switch to modern fuel, but rather facilitates the transition to consumption of energy from multiple fuel sources. Factors that increase the chances of full fuel transition are education and access to gas. By contrast, the number of elderly family members and size of the house negatively affect the transition to clean energy use.