Socio-economic impact of Woodfuel production in dryland environment of Ethiopia

Policymakers and other planners often discuss woodfuel production in relation to environmental sustainability, energy, and livelihood. There is a growing awareness of the negative environmental impacts of woodfuel, such as deforestation and greenhouse gas emissions. However, the relationship between woodfuel production and other socio-economic and livelihood issues has been less explored. This study aims to investigate the socioeconomic implications of woodfuel production in Ethiopia's dry woodlands. A total of 1114 respondents were selected from households that produce woodfuel and those that do not. Data was collected through key informant interviews, focus groups, and household surveys. The study examined the impact of woodfuel production on total annual cash income and overall livelihood assets using a propensity score matching (PSM) model. Woodfuel contributes significantly to household income, with charcoal accounting for 35.9% and firewood for 6.6% of total yearly cash income. On average, woodfuel makes up between 4.5% and 70% of total yearly cash revenue for households. The impact of woodfuel production on households' yearly cash income and overall livelihood assets was Ethiopian Birr 21,673.63($387) and Ethiopian Birr 10,304.21($184), respectively. The findings suggest that organizations and planners should prioritize sustainable woodfuel production by balancing socioeconomic, institutional, and technological with environmental impacts.