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Household Energy Choices and Fuelwood Consumption: An Econometric Approach to the French Data

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  • Couture, Stéphane
  • Garcia, Serge
  • Reynaud, Arnaud

Abstract

In an international context of soaring oil prices and growing awareness of the need to combat global warming, wood would appear to be becoming increasingly competitive and desirable for our environment. France is the leading consumer of fuelwood in the EU, mainly for home consumption and for heating, although the share of wood in primary energy consumption is still very low (4%). It is therefore important to understand how domestic consumer fuelwood demand is determined. We propose an econometric analysis of fuelwood consumption by modeling the choice made by consumers of the type of use of wood for heating, and the possible combination between one energy used as a main source of heating and another used as a back-up. Our estimations show that this choice is mainly determined by income. Wood is chosen as the main energy source by the poorest households. Consumption is price sensitive in the case of main use of wood (price elasticity of -0.4), but price elasticity is lower in the case of back-up use, and varies according to the type of energy used as the main source (electricity, gas, fuel oil).

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Bibliographic Info

Paper provided by Toulouse School of Economics (TSE) in its series TSE Working Papers with number 09-044.

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Date of creation: May 2009
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Handle: RePEc:tse:wpaper:22147

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Keywords: energy wood; type of use; domestic demand;

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  1. Mehdi Farsi & Massimo Filippini & Shonali Pachauri, 2005. "Fuel Choices in Urban Indian Households," CEPE Working paper series 05-42, CEPE Center for Energy Policy and Economics, ETH Zurich.
  2. Ouedraogo, Boukary, 2006. "Household energy preferences for cooking in urban Ouagadougou, Burkina Faso," Energy Policy, Elsevier, vol. 34(18), pages 3787-3795, December.
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  7. Chambwera, Muyeye & Folmer, Henk, 2007. "Fuel switching in Harare: An almost ideal demand system approach," Energy Policy, Elsevier, vol. 35(4), pages 2538-2548, April.
  8. Dubin, Jeffrey A & McFadden, Daniel L, 1984. "An Econometric Analysis of Residential Electric Appliance Holdings and Consumption," Econometrica, Econometric Society, vol. 52(2), pages 345-62, March.
  9. Schmertmann, Carl P., 1994. "Selectivity bias correction methods in polychotomous sample selection models," Journal of Econometrics, Elsevier, vol. 60(1-2), pages 101-132.
  10. Gupta, Gautam & Kohlin, Gunnar, 2006. "Preferences for domestic fuel: Analysis with socio-economic factors and rankings in Kolkata, India," Ecological Economics, Elsevier, vol. 57(1), pages 107-121, April.
  11. Rasmus Heltberg & Thomas Channing Arndt & Nagothu Udaya Sekhar, 2000. "Fuelwood Consumption and Forest Degradation: A Household Model for Domestic Energy Substitution in Rural India," Land Economics, University of Wisconsin Press, vol. 76(2), pages 213-232.
  12. MacKenzie, John & Weaver, Thomas F., 1986. "A Household Production Analysis Of Fuelwood Demand In Rhode Island," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 15(1), April.
  13. Masera, Omar R. & Saatkamp, Barbara D. & Kammen, Daniel M., 2000. "From Linear Fuel Switching to Multiple Cooking Strategies: A Critique and Alternative to the Energy Ladder Model," World Development, Elsevier, vol. 28(12), pages 2083-2103, December.
  14. Leach, Gerald, 1992. "The energy transition," Energy Policy, Elsevier, vol. 20(2), pages 116-123, February.
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Cited by:
  1. Arabatzis, G. & Malesios, Ch., 2011. "An econometric analysis of residential consumption of fuelwood in a mountainous prefecture of Northern Greece," Energy Policy, Elsevier, vol. 39(12), pages 8088-8097.

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