JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org. This content downloaded from 137.ABSTRACT. This paper disusses domestic energy supply and demand in rural India. Links between forest scarcity and household fuel collection are analyzed in a non-separable household model, focusing on substitution of non-commercial fuels from the commons and the private domain. Based on data from villages bordering a protected area, a novel maximum entropy approach is used for estimation. It is found that households respond to forest scarcity and increased fuelwood collection time by substituting fuels from private sources for forest fuelwood. However, the magnitude of the response appears insufficient to prevent current fuelwood collection practices from causing serious forest degradation. (JEL Q24)
I. INTRODUCTIONFuelwood gathered from the forested commons is the most important source of domestic energy in the rural areas of many developing countries (Cecelski, Dunkerley, and Ramsey 1979). About half the world's population cook with biomass fuels, which provide around 35% of energy supplies in the developing countries (World Bank 1992). Fuelwood collection and consumption are intricately linked to natural resource management. There is a two-way relationship between fuelwood collection and deforestation. On the one hand, demand for fuelwood from commons and forests causes resource degradation to the extent that collection exceeds sustainable yield. Forest degradation, on the other hand, leads to a situation of fuelwood scarcity. Indeed, a mounting global "fuelwood crisis" has been envisaged (Dewees 1989). In addition, there are a number of other adverse consequences of forest degradation, including loss of biodiversity, deterioration of watershed management functions, release of carbon dioxide into the atmosphere, and soil erosion.Alternative sources of rural domestic energy-crop residues, animal dung, wood from trees on the farm, biogas, kerosene and sun and wind power-do not cause forest degradation. Substitution from fuelwood to these alternative sources can reduce pressure on natural forests. In addition, more widespread use of improved stoves, biogas, and other improved end-use technologies through reduced energy input requirements also has the potential to reduce pressure on forest resources. The same can be said about improved functioning of local natural resource management institutions and efforts at promoting "participatory" and "joint" forest management. Thus, a better understanding of the determinants of rural household's fuel substitution and adoption of improved energy conversion technologies is essential for informing forest policies and programs.Few rigorous empirical studies have been done on the determinants of fuelwood demand an...