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

Author

Listed:
  • 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.

Suggested Citation

  • John H. Y. Edwards & Christian Langpap, 2005. "Startup Costs and the Decision to Switch from Firewood to Gas Fuel," Land Economics, University of Wisconsin Press, vol. 81(4).
  • Handle: RePEc:uwp:landec:v:81:y:2005:i:4:p570-586
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    References listed on IDEAS

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    1. Gunnar Köhlin & Peter J. Parks, 2001. "Spatial Variability and Disincentives to Harvest: Deforestation and Fuelwood Collection in South Asia," Land Economics, University of Wisconsin Press, vol. 77(2), pages 206-218.
    2. Godoy, Ricardo & O'neill, Kathleen & Groff, Stephen & Kostishack, Peter & Cubas, Adoni & Demmer, Josephien & Mcsweeney, Kendra & Overman, Johannes & Wilkie, David & Brokaw, Nicholas & Martinez, Marque, 1997. "Household determinants of deforestation by amerindians in honduras," World Development, Elsevier, vol. 25(6), pages 977-987, June.
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    4. 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.
    5. Davis, Mark, 1998. "Rural household energy consumption : The effects of access to electricity--evidence from South Africa," Energy Policy, Elsevier, vol. 26(3), pages 207-217, February.
    6. Amacher, Gregory S. & Hyde, William F. & Kanel, Keshav R., 1996. "Household fuelwood demand and supply in Nepal's tarai and mid-hills: Choice between cash outlays and labor opportunity," World Development, Elsevier, vol. 24(11), pages 1725-1736, November.
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    Citations

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    Cited by:

    1. Brooks, N. & Bhojvaid, V. & Jeuland, M.A. & Lewis, J.J. & Patange, O. & Pattanayak, S.K., 2016. "How much do alternative cookstoves reduce biomass fuel use? Evidence from North India," Resource and Energy Economics, Elsevier, vol. 43(C), pages 153-171.
    2. Gebreegziabher, Zenebe & Mekonnen, Alemu & Kassie, Menale & Köhlin, Gunnar, 2012. "Urban energy transition and technology adoption: The case of Tigrai, northern Ethiopia," Energy Economics, Elsevier, vol. 34(2), pages 410-418.
    3. repec:ags:eeaeje:258635 is not listed on IDEAS
    4. repec:eee:eneeco:v:70:y:2018:i:c:p:429-439 is not listed on IDEAS
    5. Karimu, Amin & Mensah, Justice Tei & Adu, George, 2016. "Who Adopts LPG as the Main Cooking Fuel and Why? Empirical Evidence on Ghana Based on National Survey," World Development, Elsevier, vol. 85(C), pages 43-57.
    6. repec:kap:reveho:v:15:y:2017:i:4:d:10.1007_s11150-015-9318-5 is not listed on IDEAS
    7. Christophe Muller & Huijie Yan, 2018. "Household Fuel Use in Rural China," Working Papers halshs-01735847, HAL.
    8. 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.
    9. Ngawang Dendup & Toshi H. Arimura, 2018. "Information Leverage: The Adoption of Clean Cooking Fuel in Bhutan," RIEEM Discussion Paper Series 1801, Research Institute for Environmental Economics and Management, Waseda University.
    10. Alem, Yonas & Hassen, Sied & Köhlin, Gunnar, 2014. "Adoption and disadoption of electric cookstoves in urban Ethiopia: Evidence from panel data," Resource and Energy Economics, Elsevier, vol. 38(C), pages 110-124.
    11. van der Kroon, Bianca & Brouwer, Roy & van Beukering, Pieter J.H., 2013. "The energy ladder: Theoretical myth or empirical truth? Results from a meta-analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 20(C), pages 504-513.
    12. Jagger, Pamela & Shively, Gerald, 2014. "Land use change, fuel use and respiratory health in Uganda," Energy Policy, Elsevier, vol. 67(C), pages 713-726.
    13. Alem, Yonas & Hassen, Sied & Kohlin, Gunnar, 2013. "The Dynamics of Electric Cookstove Adoption: Panel Data Evidence from Ethiopia," Discussion Papers dp-13-03-efd, Resources For the Future.
    14. 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.
    15. Christophe Muller & Huijie Yan, 2016. "Household Fuel Use in Developing Countries: Review of Theory and Evidence," Working Papers halshs-01290714, HAL.
    16. 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.
    17. Jagger, Pamela & Jumbe, Charles, 2016. "Stoves or sugar? Willingness to adopt improved cookstoves in Malawi," Energy Policy, Elsevier, vol. 92(C), pages 409-419.
    18. 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: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 14(1), pages 25-43, February.
    19. 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.
    20. Zenebe, Gebreegziabher & Oskam, Arie J. & Bayou, Demeke, 2011. "Urban Fuel Demand in Ethiopia: an Almost-Ideal Demand System Approach," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 0(Number 1), pages 180-180, September.

    More about this item

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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