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

  • John H. Y. Edwards
  • Christian Langpap

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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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
Contact details of provider: Web page: http://le.uwpress.org/

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  1. 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.
  2. 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.
  3. 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.
  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. Martin Linde-Rahr, 2003. "Property Rights and Deforestation: The Choice of Fuelwood Source in Rural Viet Nam," Land Economics, University of Wisconsin Press, vol. 79(2), pages 217-234.
  6. 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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