Joint production and consumption in traditional households: Fuelwood and crop residues in two districts in Nepal

Forest conversion by agricultural households is the leading cause of deforestation. Yet we know little about agricultural household use of forest and tree products. This article measures household production of and demand for fuelwood and fuel substitutes in two districts in Nepal. Women play a larger role in collection in the district dependant on production from common forestlands. Men and agricultural capital are more important inputs in the district dependant on production from private lands. The article also measures demand elasticities for fuelwood, combustible agricultural residues, and improved stoves (a technological substitute), each by household income group. All price and income demand elasticities are less than one. The substitution elasticities between residues and fuelwood are less than one. Residues are more important substitutes for low income households and improved stoves are more important substitutes for high income households.