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Startup Costs and the Decision to Switch from Firewood to Gas Fuel

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  • John H. Y. Edwards
  • Christian Langpap

Abstract

Firewood remains a key source of energy for households in developing countries, contributing to forest degradation and deforestation. The adoption of alternative fuels may be hindered by high startup costs, and this problem may be compounded by restrictions in credit availability. We use survey data to examine how credit access affects firewood consumption in Guatemala. Our results suggest that access to credit plays a statistically significant role in determining firewood consumption through its effect on the ability to purchase a gas stove. However, simulations suggest that these effects are small and that subsidizing stoves would be amore promising policy for reducing firewood consumption.

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File URL: http://le.uwpress.org/cgi/reprint/81/4/570
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Bibliographic Info

Article provided by University of Wisconsin Press in its journal Land Economics.

Volume (Year): 81 (2005)
Issue (Month): 4 ()
Pages:

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Handle: RePEc:uwp:landec:v:81:y:2005:i:4:p570-586

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Web page: http://le.uwpress.org/

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Cited by:
  1. Curtis Holder & Gregory Chase, 2012. "The role of remittances and decentralization of forest management in the sustainability of a municipal-communal pine forest in eastern Guatemala," Environment, Development and Sustainability, Springer, vol. 14(1), pages 25-43, February.
  2. Edwards, John H. Y. & Langpap, Christian, 2012. "Fuel choice, indoor air pollution and children's health," Environment and Development Economics, Cambridge University Press, vol. 17(04), pages 379-406, August.
  3. Gebreegziabher, Zenebe & Mekonnen, Alemu & Kassie, Menale & Köhlin, Gunnar, 2010. "Urban Energy Transition and Technology Adoption: The Case of Tigrai, Northern Ethiopia," Discussion Papers dp-10-22-efd, Resources For the Future.
  4. Alem, Yonas & Hassen, Sied & Köhlin, Gunnar, 2013. "The Dynamics of Electric Cookstove Adoption: Panel data evidence from Ethiopia," Working Papers in Economics 557, University of Gothenburg, Department of Economics.
  5. Gebreegziabher, Zenebe & Oskam, Arie J. & Bayou, Demeke, 2010. "Urban Fuel Demand in Ethiopia: An Almost-Ideal Demand System Approach," Discussion Papers dp-10-20-efd, Resources For the Future.
  6. Malla, Sunil & Timilsina, Govinda R, 2014. "Household cooking fuel choice and adoption of improved cookstoves in developing countries : a review," Policy Research Working Paper Series 6903, The World Bank.
  7. Jagger, Pamela & Shively, Gerald, 2014. "Land use change, fuel use and respiratory health in Uganda," Energy Policy, Elsevier, vol. 67(C), pages 713-726.
  8. Andadari, Roos Kities & Mulder, Peter & Rietveld, Piet, 2014. "Energy poverty reduction by fuel switching. Impact evaluation of the LPG conversion program in Indonesia," Energy Policy, Elsevier, vol. 66(C), pages 436-449.

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