DETERMINANTS OF MARKET ACCESS TO LIQUEFIED PETROLEUM GAS (LPG) AMONG URBAN HOUSEHOLDS IN ABIA STATE, NIGERIA

ABSTRACT

The study analyzed the determinants of market access to LPG use among urban households in Abia State, Nigeria. The objectives is to: Measure the effect of income on market access of LPG, evaluate the impact of price to availability to market access of LPG, determine the influences of product availability of LPG and identify the preference pattern of selected cooking energy sources outside LPG. The study was done in the urban areas of Abia State. In this case, two urban areas of Aba and Umuahia were chosen, after which 120 households were selected from each these areas, making a total of 240 households. Objectives were analyzed using descriptive statistics and probit regression model. The results showed that income, price and availability were all significant in accessing the LPG products. Major constraints to access were cost of starting and explosion. It was also observed that kerosene was the major preferred cooking energy in urban area. The study recommends that price of LPG should be made affordable and product highly available. Also safety and public sensitization campaigns should be organized to educate the households on the use of LPG.

TABLE OF CONTENT

Title page ﾿ i

Declaration ﾿ ii

Certification ﾿ iii

Dedication ﾿ iv

Acknowledgement ﾿ v

Table of Content ﾿ vi

List of Tables ﾿ x

List of Figures ﾿ xi

Abstract ﾿ xii

CHAPTER ONE

1.0 INTRODUCTION

1.1 ﾿ Background of the Study ﾿ 1

1.2 ﾿ Statement of Problem ﾿ 6

1.3 ﾿ Objective of the Study ﾿ 8

1.4 ﾿ Research Question ﾿ 9

1.5 ﾿ Research Hypothesis ﾿ 9

1.6 Significance of the Study ﾿ 10

CHAPTER TWO

2.0 LITERATURE REVIEW

2.1 Emergence of Nigeria’s Natural Gas Industry ﾿ 11

2.2 The Exploration and Production of Natural Gas in Nigeria ﾿ 14

2.3 Theoretical Framework ﾿ 23

2.3.1 Gas Flaring and Environmental Pollution ﾿ 25

2.4 Fuel Substitution and the Energy Ladder model ﾿ 31

2.5 A critique of the Energy Ladder Model ﾿ 38

2.6 The Energy Mix Model ﾿ 43

2.7 Formal Presentation of the Energy Mix Model ﾿ 50

CHAPTER THREE

METHODOLOGY

3.0 Introduction ﾿ 56

3.1 Research Design ﾿ 56

3.2 Area of the Study ﾿ 56

3.3 Population for the Study ﾿ 57

3.4 Sample Size Determination ﾿ 57

3.5 Sampling Technique and Method ﾿ 58

3.6 Sources of Data ﾿ 58

3.7 Validity and Reliability of Instruments ﾿ 58

3.8 Data Analysis ﾿ 59

3.9 Model Specification ﾿ 59

CHAPTER FOUR

4.0 RESULT AND DISCUSSION

4.1 ﾿ Socio-Economic Characteristics of the Respondents ﾿ 62

4.1.1 ﾿ Household size distribution of the Respondents ﾿ 63

4.1.2 ﾿ Educational attainment of household heads ﾿ 64

4.1.3 ﾿ Marital status  of the Respondents ﾿ 65

4.1.4 ﾿ Income distribution of the respondents ﾿ 65

4.2 ﾿ Problems Associated with the use of LPG ﾿ 67

4.3 ﾿ Preference pattern of selected cooking energy sources outside LPG ﾿ 68

4.4 ﾿ Determinants of Access to Liquefied Petroleum Gas (LPG) among ﾿ Household in Abia State ﾿ 69

CHAPTER FIVE

5.0 SUMMARY, CONCLUSION AND RECOMMENDATION

5.1 Summary ﾿ 72

5.2 Conclusion and Recommendation ﾿ 73 ﾿

References ﾿ 75