Fuel Wood Consumption and Forest Degradation in Rural Highlands of Ethiopia: The Case of Amhara Region

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Date

2005-10

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A.A.U

Abstract

The paper examines the energy supply demandin highland rural Erhiopia- the case' of Amhara Region. We develop a non-separable household model to analyze the link between forest scarcity and household energy consumption, Focusing on the substitution of fuels from the forests and commons and the private domain. the model is estimated by two stage least squares using recently collected data from 12 rural Kebeles of East Gojam and south Wollo in the Amhara region. To check and correct (when necessary) for sample selection bias due to unobsevabiltiy of the amount of Fuel collected for non-collecting household, Heckit model was used. fuel collections in the study area significantly respond to fuelwood collection time, Household endowment profiles, And household demographic characteristics. The results showed that households are responsive to fuelwood scarcity. The relative scarcity of private energy in the model was captured by the effect of Non-Price variables including number of trees growing on own field, Animal Stock, And farm size on this fuel type. Households that are better off in owning large farmland size, Large Number of trees, And cattlie have an advantage to collect more Fuel From Private domain. the cross price elasticities of the above variables showed that fuelwood from commons and the alternative domestic fuel (i.e. private energy) are gross substitutes. Many of the implied elasticities were, however, low. Thus, policy interventions appear necessary to reduce forest degradation.

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Keywords

Forest Degradation, Fuel Wood Consumption, Rural highlands of Ethiopia

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