An econometric analysis of household wood fuel demand in Tanzania

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University of Dar es Salaam
Limited success to control deforestation in Tanzania is partly attributed by over use of forest resources as the main source of energy by households. The aim of this study is to estimate the demand functions for wood fuel (charcoal and firewood) and to determine the factors influencing this demand in Tanzania. The study uses household budget survey data for 10466 households collected by National Bureau of Statistics in 2007. The demand functions for charcoal and fire wood are estimated using Heckman two step model. From the model the results suggests that income has a positive effect on both the quantity demand and the likelihood of consuming wood fuel showing that charcoal and fire wood are normal goods, while own price of both charcoal and firewood has a negative effect on demand and inelastic showing that these two fuels are necessity goods. Moreover the price of kerosene has a significant positive effect on the demand for charcoal which implies that kerosene and charcoal are substitute commodities. Education of the head of household has a negative influence on the demand for wood fuel, thus as the education level of households increases the demand for wood fuel decreases. Therefore from this study in order to reduce excessive use of wood fuels we need to educate people and to make sure alternative sources of energy such as electricity, LPG and kerosene are affordable and accessible in different areas of the country.
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econometric, household, wood fuel, economics
Edward, L.(2013). An econometric analysis of household wood fuel demand in Tanzania. Master dissertation, University of Dar es Salaam. Available at (