Persistent Rise in Demand for Firewood in Bhutan? An Unbalanced Panel Data Analysis 2003-2017

Abstract

Using the large sample household survey conducted in the years 2003, 2007, 2012, and 2017, this study examines the change in firewood consumption due to the adoption of electricity, liquid petroleum gas (LPG), and biogas. This study examines the use of firewood separately for cooking and heating purposes over the study period.Almost all the households in Bhutan are connected to electricity. The rural electrification programme in the last two decades has helped households shift to electricity for lighting and cooking purposes. While we look at the energy use dynamics in Bhutan, the households have shifted their energy use from firewood to more clean energy sources such as electricity, liquefied petroleum gas (LPG), and biogas for cooking purposes. However, the use of firewood for heating has been persistently increasing over the years. Our two-way fixed effect model suggests that firewood family size, the distance to the distribution point, and the number of cattle the households own also significantly influence firewood consumption.The results from the Focus Group Discussions (FDGs) indicated that the Bhutanese tradition of construction, food, and living in rural areas plays a significant role in maintaining the unwavering demand for firewood.