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COMPARATIVE ANALYSIS OF ENERGY USAGEAND ENERGY EFFICIENCY BEHAVIOURIN LOW AND HIGH INCOME HOUSEHOLDS (A CASE STUDY OF IBADAN, NIGERIA)
Energy is considered and in the real sense is a critical factor for economic growth of any country. Energy as a commodity is known to be part of the drivers of economic development as it increases productivity and income as well as create employment. The aim of an efficient energy market is to provide energy commodities to power the industrial, transport, household and service sectors of the economy. Hence, energy remains the grease of sustainable economic growth. If energy is underpriced, then supply will not meet demand. At the moment in Nigeria there is a very high level of unsatisfied demand for energy which is believed to be caused by the historic underpricing of energy and an indicator of this is the widespread use of diesel generators which usually produces electricity at a price level that is much higher than the price of grid electrical energy.
Energy efficiency has been an important topic since the latter part of the last century. This is because adoption of energy efficiency measures has been acknowledged asone of the key methods of addressing the negative impact of climate change. Energy efficiency has been one of the most dominant topics of our time. It gathered pace starting in the early 1990s, when the scientific community started actively discussing the link between climate change and the sustainable use of energy resources. However, the need to conserve energy resources is at variance with the imperative for development. (Malama and Makashini, 2015). Some studies have shown that while also considering the location and the design of a building, the consumption behavior of the occupants also has an important role to play in determining domestic energy consumption. There is a need, therefore, to find the right balance between energy consumption and development (Malami and Makashini,2015). The global community has reached a consensus that the responsibility for sustainable consumption of energy resources lies with every nation and Nigeria as a nation needs to ensure that they contribute to this global effort.
1.2 STATEMENT OF THE PROBLEM
Throughout the world electricity is the most widely used and desirable form of energy. It is a basic requirement for economic development and for an adequate standard of living. Energy consumption pattern in Nigeria can be broadly grouped into urban and rural spheres, with urban sub group to include: industry, transport, commercial, household and agricultural sectors that there are disparities in the energy consumed by urban households and rural households, between high and low income group; within a region, country and among different countries(Nwofe,2013). Energy utilization in Nigeria is far from efficient, Forest and woodland reserves are being depleted for heating and cooking purposes using stoves of efficiency less than 10%. Inefficient electrical appliances(lighting, refrigeration, air conditioning, motors, fans, etc.) especially in the residential, commercial and industrial sectors in the face of inadequate supply has aggravated the demand-supply imbalance. Cooking, laundry and heating constitutes the bulk of house hold energy use in most developing countries especially among low or no income householdsEnergy efficiency means improvement in practices and products that reduce the energy necessary to provide services like lighting, cooling, heating, manufacturing, cooking, transport, entertainment etc.
Energy efficiency is also defined as essentially using less energy to provide the same service. In this sense, energy efficiency can also be thought of as a supply resource often considered an important, cost effective near to midterm supply option.
Presently, energy utilization in Nigeria is far from being efficient, more people will have access to energy if we save energy in one part of the country, and the energy saved can be made available in another part. In Nigeria, where the utility companies do not have enough energy to meet the needs of everybody at the same time, energy supply is alternated. With good energy management at the residential, public and private sector, there will be no need to alternate electricity supply.
Many studies done in developed countries have concentrated on the analysis and quantification ofthe impact of lifestyle factors on current and future energy demands. Some studies have shown that apart from the design and location of a building, the behavior of the users or occupants is also an important determinant of domestic energy consumptionEvidence from studies on this subject has shown that the potential for energy saving as a result of changes in consumer behavior can be as high as 25% of current consumption in the residential sector in the USA. According to Janda, building users play a critical but poorly understood role in determining energy consumption in buildings.
1.3 OBJECTIVES OF THE STUDY
The main objective of this research is to find out whether households which belong to different income groups behave differently with regards to the adoption of energy efficiency measures. The other objectives of the study were to establish:
- To examine the rate and patterns of household’s energy usage among low and high income
- To examine the major factors explaining household’s energy usage among low and high income
- To examine the factors enhancing the adoption of solar energy and energy efficiency technologies low and high income household
1.4 Research Questions
- What is the rate and patterns of household’s energy usage among low and high income
2. What are the major factors explaining household’s energy usage among low and high income?
3. What are the factors enhancing the adoption of solar energy and energy efficiency technologies low and high income household?
- There is no significant effect of the rate and patterns of household’s energy usage among low and high income
5. There is no significant effect of major factors explaining household’s energy usage among low and high income
6. There is no significant effect of the factors enhancing the adoption of solar energy and energy efficiency technologies low and high income household
1.5 Justification for the Study
Domestic energy use and sustainability constitute an important framework for assessing the impact of changes in environmental policy, structure and regulation of energy companies, public awareness of environmental issues, energy saving initiatives and energy sustainability. The aim of the research is to find out whether households belonging to different income groups behave differently with regard to the adoption of energy efficiency measures. The findings will be of pronounced importance to the Nigerian government parastatals and the ministry of power as well as the utility companies in determining appropriate policies that are geared towards efficient energy usage in Nigeria. The study would also be useful to researchers who intend to embark on research on similar topics
1.6 SCOPE OF THE STUDY
The study is going to cover analysis on different types of energy used in both low income and high income households as well as what informs their decision to consume efficiently with a special focus on electricity and petroleum product in Nigeria with special emphasis on the rural, semi-urban and urban communities of Oyo state, taking Ibadan as a case study
1.7 LIMITATION OF THE STUDY
In every research work, it is likely that the researcher may encounter some limitations. The researcher encountered some challenges during the period of carrying out this research. Some of these challenges include the dearth of materials for a proper and effective research work constituted a major limitation. Again, how to get the true and required information from the students through questionnaire also constituted a constraint in the study.
Finally, there was the problem of convincing the students on the primary objectives of the questionnaire so as to give the true and required information. However, the intervention of the class teachers in the schools who took time to clear the air and convince his students helped the investigator to administer the instrument successfully.