DOES WOODFUEL PRICE DISTORTION INHIBIT ECO-EFFICIENCY IN WOODFUEL EXPLOITATION SYSTEMS IN SUB-SAHARAN AFRICA? EVIDENCE FROM CAMEROON

Abstract

The aim of this study is to assess the impacts of woodfuel prices distortion on the eco-efficiency of woodfuel exploitation systems. The study, conducted in Cameroon, involved 415 randomly selected woodfuel operators. To achieve this, the marginal opportunity cost approach and the stochastic specification of the production technology were used to assess the price distortion degree and the eco-efficiency indices, respectively. In doing so, the 2SLS allowed to evaluate the impacts of woodfuel prices distortion on eco-efficiency of woodfuel exploitation systems. From this study, we conclude that the woodfuel prices distortion does not encourage eco-efficient exploitation of this resource. A 1% increase in the degree of distortion results in a reduction in eco-efficiency of −0.019 points. Including the optimal price in the woodfuel pricing system will improve eco-efficiency by 0.030 points. In view of these results, a marginal opportunity cost pricing system that takes into account all the exploitation costs ignored by the market price like user costs associated with resource depletion and the external costs associated with CO2 emissions will encourage producers to adopt a sustainable woodfuel exploitation path.