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Using data from the 2007 Timor-Leste Living Standards Survey, this paper examines the determinants of household energy choices in Timor-Leste. The majority of households are dependent on dirty fuels such as fuelwood and kerosene for energy. Only a small fraction of households use clean energy such as electricity. Econometric results show that wealthy households, urban households, and those headed by individuals with higher levels of education are less likely to use and depend on kerosene and more likely to use and depend on electricity. While female-headed households are generally more likely to use and depend on fuelwood, richer female-headed households are more likely to use and depend on electricity. Our findings highlight the importance of ensuring an adequate supply of clean energy for all at affordable prices and of investing in education to raise awareness about the adverse impacts of using dirty fuels.

The chapter focuses on the energy transition as a necessary prerequisite for developing a green economy. The features of the new energy transition are based on the introduction and use of clean technologies, such as renewable energy and hydrogen. The urgency of taking drastic measures to transition to green energy is connected with the speedy solution to climate problems on the planet. The countries are actively taking measures to decarbonize economic processes; businesses are adopting business strategies that include reducing the negative impact on the environment and introducing green technologies. The paper analyzes current trends in the energy sector to identify the readiness of a new energy transition to the principles of a green economy.