income levels may lead to bias estimates. We therefore compare the results of the model estimated with and without the household per capita expenditures variable. We find that the inclusion of household per capita expenditures does not significantly affect any of the other explanatory variables coefficients, and report the results including per capita expenditures as one of the explanatory variables (as do most other energy studies).

Household fuel choices are influenced by the household’s social and economic characteristics. When households produce or collect the fuelwood they use, their use and collection is influenced by the opportunity costs and productivity of household members’ labor. Thus, households that own their wood plot would be more likely to use fuelwood, as would larger households, particular those with unemployed or underemployed members. Households with higher education, on the other hand, would be less likely to use fuelwood. We include in the model the following household characteristics: household size, the number of children under 5 years of age, education level of household head, gender of household head, employment status of household head, whether the household owns a wood plot, whether the household receives family material assistance, and whether the household belongs to the Roma population.

Housing characteristics are clearly important and may determine to what extent household are able to choose fuelwood as an alternative. Households living in apartments rather than houses may be more constrained in their choice of heating fuel. Newer housing, particularly apartments, may not be fitted with proper ventilation to allow burning of wood indoors. Finally, if the dwelling is renter occupied, it is less likely that the tenant would invest in modifications to allow use of fuelwood as an alternative. We thus include in the analysis housing characteristics such as: dwelling type (house or apartment), whether the household owns the dwelling, age of the dwelling, and the size of the living area. Regional dummies are used to control for climate differences and other unaccounted regional differences.

**_Main results of the household fuel choice model._** The results of the multinomial logit model are reported in Table 8. We select households that use only electricity as the base case scenario and report the variables which affect full or partial use of fuelwood for space heating. Price and income are significant determinants of a using only fuelwood, but not of a partial use of fuelwood. Higher relative prices decrease the probability of using only fuelwood for space heating. This means as electricity prices increase, the relative price of fuelwood falls and therefore the probability of using only fuelwood for space heating increases. Richer households are less likely to use only fuelwood for heating.

Household living in a house are significantly more likely to use fuelwood for space heating, as are households living in the North. Household head education and gender also affect fuel choice. More educated household heads are less likely to use only fuelwood, whereas households headed by females are more likely to use only fuelwood for space heating. Larger household are also more likely to use fuelwood than smaller households. Ownership of a wood plot also significantly increases the probability of using fuelwood for space heating. Thus household characteristics matter a great deal in the choice of heating fuel. Larger household size, which could indicate the availability 18