An Economic Investigation into Fuel-Wood Demand Behaviour in South Lunzu Township in Malawi

Abstract

This study analysed the effect of household income on demand for fuel-wood in South Lunzu Township of Blantyre city, Malawi. Survey data was collected through a semi-structured questionnaire about household socioeconomic status. Using Engel function analysis employed in ordinary least squares framework, the study found a negative relationship between fuel-wood and income. This shows that fuel-wood is regarded as an inferior commodity. Other factors that explain the behaviour of choice between fuel-wood and electricity included  home size, perception on well-being, age of the head of household, education of the head of household, and total expenditure. Campaigns aimed at changing the mindset of people such as those regarding renewable energy as solutions for rural areas only need to be intensified.

Keywords: Energy demand, Engel function, Income, Fuel-wood, South Lunzu, Malawi.