Saving Africa's tropical forests through energy transition: A randomized controlled trial in Tanzania

The production of charcoal to meet cooking needs of urban households is one of the main causes of deforestation and degradation of Africa's tropical forests, which offer significant carbon sequestration capacity to the global economy. In collaboration with a reputable local microfinance institution, we designed a randomised controlled trial in urban Tanzania and offered LPG stoves through subsidy and on credit to measure their impact on charcoal consumption and the corresponding reduction in deforestation. We also investigate the impact of the stoves on cooking time of women, who are the default cooks of the household. We find that, relative to households in the control group, adoption of LPG stoves reduced charcoal consumption by about 30% in the treatment group 15 months after the intervention. This corresponds to an average reduction in deforestation of 0.04 ha/household/year. However, providing subsidies for stove purchases resulted in a larger reduction in charcoal use (38%) than did providing access on credit (27%) with the corresponding likely reduction in deforestation by 0.05 and 0.03 ha/household/year respectively. A social cost-benefit analysis suggests that the cost of both programs is far below the benefits of the averted carbon dioxide CO2 due to possible reduction in deforestation. A carefully conducted controlled cooking test shows that cooking with LP gas is 50% cheaper than cooking with charcoal and it reduces cooking time by about 44% - welfare effects clearly indicating that LPG is cost-effective to the household as well. We highlight the importance of relaxing households' financial constraints and improving access to credit to encourage urban households to switch to cleaner energy sources and save the remaining forest resources of Africa.Die Herstellung von Holzkohle zur Deckung des Kochbedarfs städtischer Haushalte ist eine der Hauptursachen für die Abholzung der tropischen Wälder Afrikas, die der Weltwirtschaft eine bedeutende Kapazität zur Kohlenstoffbindung bieten. In Zusammenarbeit mit einer angesehenen lokalen Mikrofinanzinstitution entwarfen wir eine randomisierte, kontrollierte Studie im städtischen Tansania und boten LPG-Öfen als Subvention und auf Kredit an, um ihre Auswirkungen auf den Holzkohleverbrauch und die entsprechende Verringerung der Entwaldung zu messen. Wir untersuchen auch die Auswirkungen der Öfen auf die Kochzeit von Frauen, die üblicherweise im Haushalt für das Kochen zuständig sind. Wir stellen fest, dass im Vergleich zu den Haushalten in der Kontrollgruppe die Einführung von LPG-Öfen den Holzkohleverbrauch in der Behandlungsgruppe 15 Monate nach der Intervention um etwa 30% reduzierte. Dies entspricht einer durchschnittlichen Verringerung der Entwaldung von 0,04 ha/Haushalt/Jahr. Die Bereitstellung von Subventionen für den Kauf von Öfen führte jedoch zu einer stärkeren Verringerung des Holzkohleverbrauchs (38%) als die Bereitstellung von Krediten (27%) mit der entsprechenden wahrscheinlichen Verringerung der Entwaldung um 0,05 bzw. 0,03 ha/Haushalt/Jahr. Eine soziale Kosten-Nutzen-Analyse deutet darauf hin, dass die Kosten beider Programme weit unter dem Nutzen aufgrund der möglichen Reduzierung der Entwaldung liegen. Ein sorgfältig durchgeführter kontrollierter Kochtest zeigt, dass das Kochen mit LP-Gas um 50% billiger ist als das Kochen mit Holzkohle und die Kochzeit um etwa 44% verkürzt - Wohlfahrtseffekte, die deutlich zeigen, dass LPG auch für den Haushalt kostengünstig ist. Wir betonen, wie wichtig es ist, die finanziellen Zwänge der Haushalte zu lockern und den Zugang zu Krediten zu verbessern, um die städtischen Haushalte zu ermutigen, auf sauberere Energiequellen umzusteigen und die verbleibenden Waldressourcen Afrikas zu retten

Why (field) experiments on unethical behavior are important: Comparing stated and revealed behavior

Understanding unethical behavior is essential to many phenomena in the real world. We carry out a field experiment in a unique setting that varies the levels of reciprocity and guilt in an ethical decision. A survey more than one year before the field experiment allows us to compare at the individual level stated unethical behavior with revealed behavior in the same situation in the field. Our results indicate a strong discrepancy between stated and revealed behavior, regardless of the specific treatment in the field experiment. This suggests that, given a natural setting, people may actually behave inconsistently with the way in which they otherwise “brand” themselves. Our findings raise caution about the interpretation of stated behavioral measures commonly used in research on unethical behavior. However, we show that inducing reciprocity and guilt leads to a decrease in unethical behavior.JEL:C93, D01, D0

The Effect of Carrot and Stick Measures in Fostering Taxpayer Compliance in Tanzania: Evidence from a Laboratory Experiment

With the increasing expectation and demand for the government to supply public goods such as water, health, education, and road infrastructure, the pressure to mobilize more domestic revenue in Tanzania cannot be overemphasized. Due to widespread tax evasion, concerted measures are required to foster taxpayer compliance. But how to achieve higher levels of taxpayer compliance with minimum administration costs remains an empirical question to be investigated. This study contributes to that strain by examining the effect of carrot and stick measures on fostering taxpayer compliance. The study used a laboratory experiment design, and was conducted on a sample of 201 undergraduate students from the University of Dar es Salaam. Using a bootstrapped binary logit model, the study found that both carrot and stick measures have a statistically positive effect on taxpayer compliance. However, the effects of these measures on tax compliance were not statistically different, implying that their effects are more or less the same; and that the choice of which measure to use remains largely a matter of choice as affected by the cost of implementation. Available literature suggests that implementation of stick measures in Tanzania is more costly than implementation of carrot measures due to their costs to the government and externalities such as the stress imposed on taxpayers

What could explain low uptake of rural electricity programs in Africa? Empirical evidence from rural Tanzania

Increasing electricity access remains a challenge, particularly in rural areas of sub-Saharan Africa. This study examines the case of Tanzania, where rural connection rates remain low even among households residing 'under the grid', and this despite substantial government subsidies for household connections. Using data from 1774 rural households living within reach of the electricity grid, we investigate correlates of the low grid electricity uptake. We find that proxies for wealth, including housing characteristics, are positively associated with connection status, while social network variables are less so. Capacity to pay thus appears to remain a major barrier, and in-house wiring costs emerge as a significant expense unaccounted for by the subsidy scheme, exceeding the cost of grid connection by a factor of eight. We also find that similar mechanisms govern choices between grid electricity and traditional or solar energy sources. Together, these findings inform the ongoing policy debate regarding on-grid versus off-grid energy solutions.Die Verbesserung des Zugangs zu Elektrizität stellt nach wie vor eine Herausforderung dar, insbesondere in den ländlichen Gebieten in Afrika südlich der Sahara. Diese Studie untersucht die Situation in Tansania, wo Anschlussquoten in ländlichen Gebieten selbst bei den Haushalten, die "unter dem Netz" wohnen, auf niedrigen Niveaus verharren- und dies trotz erheblicher staatlicher Subventionen für Haushaltsanschlüsse. Mittels Daten von 1774 ländlichen Haushalten, die innerhalb der Reichweite des Stromnetzes leben, untersuchen wir Faktoren, die mit der geringen Netzstromnutzung korrelieren. Wir stellen fest, dass Indikatoren für Wohlstand, einschließlich Wohnungsmerkmale, positiv mit dem Anschlussstatus im Zusammenhang stehen, während dies weniger stark auf Variablen zum sozialen Umfeld zutrifft. Die Zahlungsfähigkeit scheint somit weiterhin ein großes Hindernis darzustellen. In diesem Zusammenhang erweisen sich die Kosten für die hausinterne Verkabelung als erhebliche, durch das Subventionsprogramm nicht abgedeckte Ausgaben, die die Kosten für den Netzanschluss um das Achtfache übersteigen. Wir stellen auch fest, dass ähnliche Mechanismen die Wahl zwischen Netzstrom und traditionellen oder solaren Energiequellen bestimmen. Diese Ergebnisse liefern Informationen für die laufende politische Debatte über netzgebundene und netzunabhängige Energielösungen

The Effect of Carrot and Stick Measures in Fostering Taxpayer Compliance in Tanzania: Evidence from a Laboratory Experiment

With the increasing expectation and demand for the government to supply public goods such as water, health, education, and road infrastructure, the pressure to mobilize more domestic revenue in Tanzania cannot be overemphasized. Due to widespread tax evasion, concerted measures are required to foster taxpayer compliance. But how to achieve higher levels of taxpayer compliance with minimum administration costs remains an empirical question to be investigated. This study contributes to that strain by examining the effect of carrot and stick measures on fostering taxpayer compliance. The study used a laboratory experiment design, and was conducted on a sample of 201 undergraduate students from the University of Dar es Salaam. Using a bootstrapped binary logit model, the study found that both carrot and stick measures have a statistically positive effect on taxpayer compliance. However, the effects of these measures on tax compliance were not statistically different, implying that their effects are more or less the same; and that the choice of which measure to use remains largely a matter of choice as affected by the cost of implementation. Available literature suggests that implementation of stick measures in Tanzania is more costly than implementation of carrot measures due to their costs to the government and externalities such as the stress imposed on taxpayers

Land tenure security and internal migration in Tanzania

In this paper we study the impact of tenure security on rural to urban migration of household members over the age of 15. Using three waves of the Tanzanian National Panel Survey (NPS) data, we show that tenure security is associated with lower probability of migration in rural Tanzania. This result is consistent with the idea that better property rights over agricultural land in rural Tanzania, by easing the fear of expropriation of land holdings, can induce households to retain more of their members. The result is found to be robust to different specifications and estimation techniques. Promoting land tenure security is a key policy concern in curbing rural - urban migration at early stages of development

Ex ante economic assessment of impacts of GM maize and cassava on producers and consumers in Tanzania

Despite agriculture’s key role in Tanzania, agricultural productivity has remained relatively low compared with that of most other countries producing similar crops globally. Recent innovations in the sector such as development of genetically modified (GM) crop varieties with traits targeted to specific contextual challenges could revolutionize the country’s agricultural performance. Tanzania is attempting to deploy drought- and pest-resistant (WEMA) maize as well as brown-streak-disease-resistant cassava varieties. But little is known, contextually, about potential economic impacts of these crop varieties on Tanzanian farmers and consumers. This study implements an ex ante impact assessment to answer such important policy questions. Using DREAM, a model that estimates economic surplus as projections of consumer and producer gains from the use of a technology, complemented with locally collected and validated data, we document positive net economic impacts from the potential adoption and use of both maize and cassava GM varieties. Results are robust to various sensitivity tests and methodological cross checks that consider a range of values for production markets, performance, and adoption assumptions. Adoption of a GM crop is predicated on compliance with regulatory and other governance requirements, proper product dissemination and stewardship, and the technology’s effectiveness in addressing producer productivity issues. Special attention needs to be paid to reducing regulatory and governance delays so as to minimize inefficiencies and potential coordination issues that may arise over time.Non-PRIFPRI1; CRP2; DCA; 4 Transforming Agricultural and Rural Economies; 5 Strengthening Institutions and Governance; G Cross-cutting gender theme; Capacity Strengthening; PBSEPTD; PIMCGIAR Research Program on Policies, Institutions, and Markets (PIM

Opportunities for orphan crops: Expected economic benefits from biotechnology

An enabling, evidence-based decision-making framework is critical to support agricultural biotechnology innovation, and to ensure farmers’ access to genetically modified (GM) crops, including orphan crop varieties. A key element, and often a challenge in the decision-making process, involves the balancing of identified potential risks with expected economic benefits from GM crops. The latter is particularly challenging in the case of orphan crops, for which solid economic data is scarce. To address this challenge, the International Food Policy Research Institute (IFPRI) in collaboration with local economists analyzed the expected economic benefits to farmers and consumers from the adoption of GM crops in 5 sub-Saharan African countries. This paper focuses on case studies involving insect-resistant cowpea in Nigeria and Ghana; disease-resistant cassava in Uganda and Tanzania; and disease-resistant banana in Uganda. Estimations from these case studies show substantial economic benefits to farmers and consumers from the timely adoption and planting in farmers’ fields of GM orphan crops. Our analysis also shows how the benefits would significantly be reduced by regulatory or other delays that affect the timely release of these crops. These findings underscore the importance of having an enabling policy environment and regulatory system—covering, among other elements, biosafety and food/feed safety assessment, and varietal release registration—that is efficient, predictable, and transparent to ensure that the projected economic benefits are delivered and realized in a timely manner