Fuelwood Source Substitution and Shadow Prices in Western Kenya
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Deforestation in Sub-Saharan Africa remains a substantial problem. Increasing scarcity of fuelwood can be significant burden to households, as fuelwood is a key component of the energy profile of a rural Sub-Saharan household. However, households do not only collect their fuelwood from off-farm, but also produce it on-farm and purchase it from the market. This paper studies substitution between fuelwood sources for rural Kenyan households. Conducting analysis using shadow prices for household fuelwood in a non-separable theoretical framework, we find that strict gender divisions in household labor contribute to a lack of substitution between fuelwood sources. Because fuelwood production on the farm is more sustainable than off-farm collection, gender divisions inhibit reforestation efforts in this area. This paper finds a direct linkage between women and environmental well-being, and concludes that reforestation efforts in SSA will likely be ineffective until labor substitution between genders increase.