Economic Analysis of A Fuelwood Consuming Activity: Empirical Evidence for Traditional Red Sorghum Beer Producers in Ouagadougou, Burkina Faso

Boukary Ouédraogo and Patrick Point

Energy and Environment Research, 2015, vol. 5, issue 1, 1

Abstract: This paper aims to analyze the determinants of input demand for local red sorghum beer production in Ouagadougou, which is an activity conducted mainly by women from these areas. The descriptive analysis in the paper emphasizes on the extent of this activity in the national economy, and namely in firewood consumption. The producer theory approach through an econometrical method using a cost translog function also helps to derive conditional input demand namely for firewood. The estimated coefficients of firewood conditional demand of local beer producers, ‘‘dolotières’’, have shown weak price elasticity hampering the fuelwood price policy. However, the simulation regarding taxation of fuelwood price effect on quantity demanded consequently states an overall reduction in demand for fuelwood in Ouagadougou. This induces a decrease in the local beer producer’s profit for a given level of production. In addition, the paper deals with short term analyses.

Date: 2015
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