Fuel Consumption in Rural India

This chapter focuses on the determinants of fuel consumption in rural India using limited dependent models. The probit model is used for the selection of the type of fuel on the basis of binary data and truncated regression (or tobit) model for estimating the incidence of consumption based on positive response only. This chapter discusses the estimated results of the selection of fuels and estimating the determinants of the amount of consumption using probit and truncated regression models. The probit model estimates the determining factors for the probability of selection of fuels for cooking purposes, whereas the truncated regression model estimates the determinants of consumption amount.