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Beer, Wood, and Welfare--The Impact of Improved Stove Use Among Dolo-Beer Breweries.

Grimm M, Peters J - PLoS ONE (2015)

Bottom Line: We assess the woodfuel savings caused by the adoption of improved brewing stoves by these micro-breweries and estimate the implied welfare effects through the woodfuel market on private households as well as the environmental effect.These savings imply huge reductions in CO2-emissions and reduce the overall demand for woodfuel, which is predominantly used by the poorer strata for cooking purposes.We provide estimates for the price decrease that might result from this and show that the urban poor are likely to benefit.

View Article: PubMed Central - PubMed

Affiliation: Department of Economics, University of Passau, Passau, Germany; International Institute of Social Studies, Erasmus University Rotterdam, Rotterdam, The Netherlands; Institute for the Study of Labor (IZA), Bonn, Germany.

ABSTRACT
Local beer breweries in Burkina Faso absorb a considerable amount of urban woodfuel demand. We assess the woodfuel savings caused by the adoption of improved brewing stoves by these micro-breweries and estimate the implied welfare effects through the woodfuel market on private households as well as the environmental effect. We find substantial wood savings among the breweries, 36% to 38% if they fully switch to an improved stove. In absolute amounts, they save about 0.176 kg of fuelwood per litre of dolo brewed. These savings imply huge reductions in CO2-emissions and reduce the overall demand for woodfuel, which is predominantly used by the poorer strata for cooking purposes. We provide estimates for the price decrease that might result from this and show that the urban poor are likely to benefit. Thus, the intervention under study is an example for a green growth intervention with pro-poor welfare gains--something green growth strategies should look for.

No MeSH data available.


Simulated savings in cooking expenditure induced by price effect.(a) shows savings for the actual adoption rate of 44%, (b) shows savings for a hypothetical adoption rate of 75% and (c) shows savings for a hypothetical adoption rate of 100%.
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pone.0132603.g001: Simulated savings in cooking expenditure induced by price effect.(a) shows savings for the actual adoption rate of 44%, (b) shows savings for a hypothetical adoption rate of 75% and (c) shows savings for a hypothetical adoption rate of 100%.

Mentions: To illustrate the distributional effect of the reduced price of woodfuels we draw “benefit incidence curves”, i.e. we show the relative reduction in household expenditures that is due to the reduced price. These curves are presented in Fig 1, they take into account the budget share spent on wood for each single household. Obviously, households that spend a relatively large share of their budget on woodfuels save relatively more than households that consume only little. To keep the analysis simple we apply the same saving rates for firewood and charcoal. Fig 1(A) shows the savings along the household expenditure distribution for the actual adoption rate of 44%. Households in the lowest quintiles save up to 2.5% of their total expenditures if the price elasticity is low. If it is high it is rather 1%. Savings decline with increasing expenditures as households spend lower shares of their budget on wood, partly because cooking energy increase under-proportionally with total expenditures and partly because richer households use gas or other non-wood fuels for cooking. Overall the distribution of improved stove among dolo breweries has via the market for wood a clearly pro-poor effect on consumers. If all dolo breweries would adopt an improved stove poor households could save up to 6% in their household expenditures. The traders of woodfuel obviously may incur a welfare loss, but this is unlikely to reduce the pro-poorness of the price effect.


Beer, Wood, and Welfare--The Impact of Improved Stove Use Among Dolo-Beer Breweries.

Grimm M, Peters J - PLoS ONE (2015)

Simulated savings in cooking expenditure induced by price effect.(a) shows savings for the actual adoption rate of 44%, (b) shows savings for a hypothetical adoption rate of 75% and (c) shows savings for a hypothetical adoption rate of 100%.
© Copyright Policy
Related In: Results  -  Collection

License
Show All Figures
getmorefigures.php?uid=PMC4526648&req=5

pone.0132603.g001: Simulated savings in cooking expenditure induced by price effect.(a) shows savings for the actual adoption rate of 44%, (b) shows savings for a hypothetical adoption rate of 75% and (c) shows savings for a hypothetical adoption rate of 100%.
Mentions: To illustrate the distributional effect of the reduced price of woodfuels we draw “benefit incidence curves”, i.e. we show the relative reduction in household expenditures that is due to the reduced price. These curves are presented in Fig 1, they take into account the budget share spent on wood for each single household. Obviously, households that spend a relatively large share of their budget on woodfuels save relatively more than households that consume only little. To keep the analysis simple we apply the same saving rates for firewood and charcoal. Fig 1(A) shows the savings along the household expenditure distribution for the actual adoption rate of 44%. Households in the lowest quintiles save up to 2.5% of their total expenditures if the price elasticity is low. If it is high it is rather 1%. Savings decline with increasing expenditures as households spend lower shares of their budget on wood, partly because cooking energy increase under-proportionally with total expenditures and partly because richer households use gas or other non-wood fuels for cooking. Overall the distribution of improved stove among dolo breweries has via the market for wood a clearly pro-poor effect on consumers. If all dolo breweries would adopt an improved stove poor households could save up to 6% in their household expenditures. The traders of woodfuel obviously may incur a welfare loss, but this is unlikely to reduce the pro-poorness of the price effect.

Bottom Line: We assess the woodfuel savings caused by the adoption of improved brewing stoves by these micro-breweries and estimate the implied welfare effects through the woodfuel market on private households as well as the environmental effect.These savings imply huge reductions in CO2-emissions and reduce the overall demand for woodfuel, which is predominantly used by the poorer strata for cooking purposes.We provide estimates for the price decrease that might result from this and show that the urban poor are likely to benefit.

View Article: PubMed Central - PubMed

Affiliation: Department of Economics, University of Passau, Passau, Germany; International Institute of Social Studies, Erasmus University Rotterdam, Rotterdam, The Netherlands; Institute for the Study of Labor (IZA), Bonn, Germany.

ABSTRACT
Local beer breweries in Burkina Faso absorb a considerable amount of urban woodfuel demand. We assess the woodfuel savings caused by the adoption of improved brewing stoves by these micro-breweries and estimate the implied welfare effects through the woodfuel market on private households as well as the environmental effect. We find substantial wood savings among the breweries, 36% to 38% if they fully switch to an improved stove. In absolute amounts, they save about 0.176 kg of fuelwood per litre of dolo brewed. These savings imply huge reductions in CO2-emissions and reduce the overall demand for woodfuel, which is predominantly used by the poorer strata for cooking purposes. We provide estimates for the price decrease that might result from this and show that the urban poor are likely to benefit. Thus, the intervention under study is an example for a green growth intervention with pro-poor welfare gains--something green growth strategies should look for.

No MeSH data available.