Bio-Based Energy, Rural Livelihoods and Energy Security in Ethiopia

Business & Finance, Economics, Economic Conditions, Development & Growth, Management & Leadership, Leadership
Cover of the book Bio-Based Energy, Rural Livelihoods and Energy Security in Ethiopia by Dawit Guta, Peter Lang
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Author: Dawit Guta ISBN: 9783653961010
Publisher: Peter Lang Publication: December 4, 2015
Imprint: Peter Lang GmbH, Internationaler Verlag der Wissenschaften Language: English
Author: Dawit Guta
ISBN: 9783653961010
Publisher: Peter Lang
Publication: December 4, 2015
Imprint: Peter Lang GmbH, Internationaler Verlag der Wissenschaften
Language: English

This study explores issues of biomass energy use in relation to household welfare and it assesses Ethiopia’s future energy security with a focus on long-term model of the energy sector, and institutional arrangements required for decentralized energy initiatives. Data from Ethiopian rural households reveal negative welfare effects associated with traditional biomass energy utilization, while increases in the opportunity cost of fuelwood collection is associated negatively with allocation of labour to agriculture and fuelwood use. It appears that investment on integrated energy source diversification improves sustainability and resilience, but increases production cost. Innovations that improve alternative sources reduce production cost, improve energy security, and thus serve as an engine of economic growth.

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This study explores issues of biomass energy use in relation to household welfare and it assesses Ethiopia’s future energy security with a focus on long-term model of the energy sector, and institutional arrangements required for decentralized energy initiatives. Data from Ethiopian rural households reveal negative welfare effects associated with traditional biomass energy utilization, while increases in the opportunity cost of fuelwood collection is associated negatively with allocation of labour to agriculture and fuelwood use. It appears that investment on integrated energy source diversification improves sustainability and resilience, but increases production cost. Innovations that improve alternative sources reduce production cost, improve energy security, and thus serve as an engine of economic growth.

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