Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
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Daily Overview |
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Sustainable development and resource management Location: Auditorium P: Finn Kydland Session Chair: Abrha Teklay Abay, University of Copenhagen | |
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Forest to Stove: The Effect of Prices on the Demand for Firewood. A Two-Sample Instrumental Variable Approach 1: The University of British Columbia, Canada; 2: Pontificia Universidad Catolica de Chile; 3: Millennium Nucleus Center for the Integrated Development of Territories NCS 2022_013; 4: Instituto Forestal Firewood use and its attendant health and environmental implications remain a concern in developing and higher-income economies and is an especially acute problem in Chile. In this paper, we ask: Can policies that raise firewood costs improve the pollution externalities of the widespread use of firewood? We estimate the causal effect of firewood prices on consumption using forest cover as an instrument for prices. We use a novel dataset of municipal firewood consumption and prices linked with satellite-based forest cover data and climatic and socio-demographic characteristics. We use a two-sample instrumental variable strategy to solve data limitations, using a lagged distance-weighted measure of forest cover to instrument firewood prices. Our results show that if new legislation increases firewood prices by 10%, consumption would decrease by 6.7%, Kerosene and electricity consumption would increase, and the direct yearly reductions in PM2.5 emissions would decrease between 3 and 67 thousand tons. | |