Urban and Rural Households’ Energy Use: Sets, Shocks, and Strategies in the Philippines

This paper aims to analyze the determinants of household energy portfolio in urban and rural areas and to determine how choices are affected by price shocks and weather variabilities in the Philippines. It confirms that energy switching is observed among high-income urban and rural households while energy stacking is observed among rural households in response to a heat index deviation and an LPG price shock. The paper also finds that households’ energy portfolios have components comprising of modern sources as energy anchors and a component that is most likely to adjust in response to price and weather-related shocks.