A Determinants and Intensity of Wood Charcoal Use in Nekemte City, Ethiopia

Abstract

The main objective of this study is to investigate the key factors influencing both the decision to use wood charcoal and the extent of its consumption among urban households by employing a Heckman two-stage selection model to address potential sample selection bias. Data were collected from 85 households using KoboCollect, capturing socioeconomic, demographic, and infrastructural variables such as age, education, family size, stability of electric powers, and charcoal price changes. Findings indicate that larger family size significantly increases the likelihood of charcoal use and the amount consumed, reflecting higher energy demands in bigger households. Education level and age also show suggestive effects, with more educated and younger household heads less likely to rely heavily on charcoal. Stability of electric power is an important determinants of charcoal consumption. Price fluctuations of charcoal influence purchasing behaviour, with most households continuing charcoal use even when prices rise, underscoring limited alternatives. The Heckman model confirms the presence of selection bias, validating the dual-stage approach for analysing charcoal consumption decisions. Policy recommendations include expanding reliable access to electricity and stability of power access, promoting energy education, and facilitating affordable clean energy alternatives to reduce dependency on charcoal. Addressing these factors is vital for enhancing environmental sustainability and public health in Nekemte and similar urban areas. This study contributes empirical evidence critical for designing effective energy policies targeting urban biomass fuel consumption in Ethiopia.