Review of Literature

The second chapter reports literature review focusing on theoretical and empirical studies at national as well as international levels. Theoretical literature discusses energy ladder and fuel stacking theories. Empirical literature supports the said earlier theories and highlights several socio-economic conditions of the households. This chapter mainly highlights that desired consumption is positive, but actual consumption is not so because other factors inhibit carrying out the change for actual consumption to be positive. To overcome such limitation, the double hurdle Cragg model (Econometrica 39:829–844, 1971) is suggested for the estimation of cooking fuel demand and its determinants at the household level.