Determinants of Energy Choices among Micro-Women Entrepreneurs in Food Preparation and Service Industry in Dar es Salaam

This chapter examines the factors determining energy choices among women-owned micro-food processing and preparation enterprises (FPP-Enterprises) in Dar es Salaam, Tanzania. It applies logit and multinomial regression models expressing energy choices as a function of an enterprise’s economic factors, characteristics, and enterprise-owner’s attributes on primary data collected from 299 FPP-enterprises. Descriptive statistics reveal that only 11% of these enterprises used modern/clean energy (liquefied petroleum gas [LPG] and/or electricity). The rest (55% and 34%) utilized charcoal only, or charcoal and firewood, respectively. As a new contribution to the energy choice literature, regression results reveal that an enterprise’s income/revenue has a significant influence on the choice of modern energy sources, which is consistent with the energy-ladder hypothesis. Also, a business’ formality captured by its location plays a crucial role in energy choice. For example, FPP-enterprises operating in permanent locations had higher probability of utilizing modern/clean energy sources than those operating in open-air spaces along streets. Policy instruments, setting aside or developing fixed premises and encouraging women-owned FPP-enterprises to relocate to the premises, and facilitating the growth of enterprises’ revenues are important in encouraging modern/clean energy use.