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Reducing Degradation Of Forests In Poor Countries When Permanent Solutions Elude Us: What Instruments Do We Really Have?

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  • Bluffstone, Randall

Abstract

This paper evaluates policies for addressing forest degradation in developing country hill areas, where agriculture is the major activity and villagers depend on forests for important economic inputs. Runaway population growth, poverty and open access probably explain most "overuse" in such areas, but these are very difficult, long-term problems. The paper argues that under such conditions, interim demand-side policies are necessary, but quite limited. Focusing on the case of Nepal, two instruments for reducing fuelwood demand, promotion of more efficient, wood-burning cookstoves and subsidization of (or reduced taxes on) alternative fuels, are evaluated. Using a simple analytical model and results from two surveys conducted in Nepal, it is concluded that promoting improved stoves is a much more efficient and equitable instrument than subsidizing the major alternative fuel, which is kerosene. The cost of fuelwood saved using improved stoves is predicted to be a very low$2.77 per metric ton.

Suggested Citation

  • Bluffstone, Randall, 1997. "Reducing Degradation Of Forests In Poor Countries When Permanent Solutions Elude Us: What Instruments Do We Really Have?," Harvard Institute for International Development (HIID) Papers 294419, Harvard University, Kennedy School of Government.
    • Handle: RePEc:ags:hariid:294419
    DOI: 10.22004/ag.econ.294419
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    Cited by:

    1. W. R. Rohitha, "undated". "Evaluating Gains from De-Eutrophication of the Dutch Canal in Sri Lanka: A Cost Benefit Analysis," Working papers 6, The South Asian Network for Development and Environmental Economics.
    2. Min Bikram Malla Thakuri, 2010. "Revisiting the Need of Improved Stoves: Estimating Health, Time and Carbon Benefits," Working Papers id:2398, eSocialSciences.
    3. Kohlin, Gunnar & Sills, Erin O. & Pattanayak, Subhrendu K. & Wilfong, Christopher, 2011. "Energy, gender and development: what are the linkages ? where is the evidence ?," Policy Research Working Paper Series 5800, The World Bank.
    4. Beyene,Abebe & Bluffstone,Randy & Gebreegzhiaber,Zenebe & Martinsson,Peter & Mekonnen,Alemu & Vieider,Ferdinand, 2015. "Do improved biomass cookstoves reduce fuelwood consumption and carbon emissions ? evidence from rural Ethiopia using a randomized treatment trial with electronic monitoring," Policy Research Working Paper Series 7324, The World Bank.
    5. Fazli Rabbi & Shahid Ali & Umar Hayat & Zia Ullah, 2017. "Why Local Residents Harvest Natural Forest? Determinants Factors In The Mountains Of Khyber Pakhtunkhwa," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 13(1), pages 59-72.
    6. Fazli Rabbi & Shahid Ali & Umar Hayat & Zia Ullah, 2017. "Why Local Residents Harvest Natural Forest? Determinants Factors In The Mountains Of Khyber Pakhtunkhwa," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 13(1), pages 13-15.
    7. Mekonnen, Alemu & Beyene, Abebe & Bluffstone, Randy & Gebreegziabher, Zenebe & Martinsson, Peter & Toman, Michael & Vieider, Ferdinand, 2022. "Do improved biomass cookstoves reduce fuelwood consumption and carbon emissions? Evidence from a field experiment in rural Ethiopia," Ecological Economics, Elsevier, vol. 198(C).
    8. Dayal, Vikram, 2006. "A microeconometric analysis of household extraction of forest biomass goods in Ranthambhore National Park, India," Journal of Forest Economics, Elsevier, vol. 12(2), pages 145-163, June.
    9. Howells, Mark I. & Jonsson, Sandra & Käck, Emilia & Lloyd, Philip & Bennett, Kevin & Leiman, Tony & Conradie, Beatrice, 2010. "Calabashes for kilowatt-hours: Rural energy and market failure," Energy Policy, Elsevier, vol. 38(6), pages 2729-2738, June.

    More about this item

    Keywords

    International Development; Resource /Energy Economics and Policy;

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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