Spillover effects and regional determinants in the Ecuadorian clean-cooking program: A spatiotemporal econometric analysis

Abstract

Developing countries are making great efforts to electrify residences to reduce dependence on fossil fuels and deal with climate change. In 2014, Ecuador launched a clean-cooking program known as the Programa de Cocción Eficiente (PCE) aimed at replacing liquefied petroleum gas (LPG)-fired cookstoves and LPG-fired boilers with electric devices. Using an original dataset of monthly information (2015-2021) at the parish level, we study several important determinants of participation in this program that have not yet been addressed. We first model spatial spillovers and then investigate the impact of regional power quality and the effect of other subsidized programs related to electricity consumption. Our results show spillover effects for PCE participation with regard to cooking but not for the overall PCE participation rate. Higher participation is associated to better supply quality and with the use of other power subsidies. Policy recommendations include the need to perform detailed spatial analyses of the determinants of participation in these programs, instead of using surveys, and designing programs using a placed-based approach, in addition to evaluating cross-sectional effects between subsidies in advance in order to avoid unforeseen trade-offs and considering the regulatory framework for utilities to provide effective incentives to improve supply quality.