Market structure and determinants of the pricing of the fuelwood in the Bono region of Ghana

Abstract

Purpose This study aims to examine the market structure and the factors influencing the price of fuelwood in the Dormaa Municipal in the Bono region of Ghana. Design/methodology/approach A total of 200 fuelwood harvesters, 20 wholesalers and 20 retailers were sampled by using probability and non-probability sampling methods. Gini coefficient was used to analyse the market structure, whereas quantile regression was used to analyse the factors influencing the pricing of fuelwood. Findings The study results indicated that the fuelwood harvesters’ market is less concentrated, with a Gini coefficient of 0.22, likewise the fuelwood intermediaries’ market, with Gini coefficients of 0.22 and 0.32 for wholesalers and retailers, respectively. The price of fuelwood decreased when sold through the retailer and wholesaler outlets, but the price increased when sold via the end-user outlet. Less smoky fuelwood species attracted higher prices, whereas easy-to-light fuelwood species were sold at lower prices. Furthermore, fuelwood from Perpewa (Celtis zenkeri) and Acacia (Senna siamea) species received the highest prices in the market. It is recommended that fuelwood harvesters establish woodlots with acacia (Senna siamea), especially and Perpewa (Celtis zenkeri), both of which emit less smoke and have high calorific value with fast rotation period. This will ensure fuelwood availability and offer better prices to the harvesters, as such species command high prices in the market. Originality/value There is paucity or near unavailability of literature on the market structure and the influence of the hedonic attributes on different quartile prices of fuelwood; the result of this study provides the foundational springboard for future studies on fuelwood marketing.