CONSUMER CHOICE AND WILLINGNESS TO PAY FOR IMPROVED COOKSTOVES IN MALAWI: A CASE OF CHIRADZULU DISTRICT Presented at the 2017 Stove camp, 6-8th june 2017 By: JOYCE GREVULO & Charles Jumbe Lilongwe university of agriculture and natural resources

Outline BACKGROUND METHODOLOGY KEY FINDINGS POLICY IMPLICATIONS/KEY MESSAGES WAY FORWARD

BACKGROUND Globally, biomass fuels are the most commonly used fuels for cooking and heating In Malawi, 95% of the households use biomass while fuel wood use accounts for 84% (NSO, 2012). Because 70% of households in Malawi have no access to non-biomass fuels (Stanturf et al., 2011). Even households with electricity still depend on wood fuels because of high electricity tariffs and cost of appliances (Jumbe and Angerson, 2011). The dependence on biomass is associated with environmental & health- related problems such as Household Air Pollution, carbon emissions and deforestation (Sagbo, 2014).

BACKGROUND In Malawi, deforestation rate is estimated at 3.2 percent which is among the highest in Africa (Malakini et al., 2014). Burning of biomass for cooking and heating on traditional three-stone firewood stove is often associated with greenhouse gas emissions (Wanjohi and Smyser, 2013). Soot from burning biomass fuels is considered the second largest contributor to anthropogenic climate change (Sagbo, 2014). Household air pollution is reported the second most vital risk factor after childhood underweight in sub-Saharan Africa with 13,000 annual deaths estimated in Malawi alone (Lim et al., 2012).

BACKGROUND To reduce the negative health and environmental effects associated with cooking with biomass fuels, GoM & NGOs have been promoting the use of ICS. Aiming at distribute two million ICS in households by 2020 (Jagger and Jumbe, 2016). However, past research has shown that ICS adoption has been low and slow (see Meyer et al. (2015), Jeuland et al. (2013) and Jueland et al. (2015)). This raises the questions as to whether consumer preferences and WTP for ICS are considered when promoting such ICS.

BACKGROUND In addition, others claim that ICS technologies are not widely adopted because they do not conform to user preferences and local cooking environment (Lewis and Pattanayak, 2012 & Whittington et al., 2012). This study was therefore designed to assess the consumer choice and willingness to pay for Improved Cookstoves in Malawi using Chiradzulu as a Case Study. Chiradzulu District was purposefully chosen as most households have never used ICS before and that there are presently no stoves program in the district A thorough understanding of consumer preferences and WTP for ICS is critical for the success of interventions aimed at promoting ICS.

Study Objectives Specifically, the study aimed at achieving the following two objectives: To determine factors that influence household choice of ICS in the study area To determine willingness to pay for ICS and its influencing factors The findings of this study are crucial as they inform the design and implementation of appropriate strategies to enhance wider adoption of ICS in Malawi.

METHODOLOGY We used a Contingent Evaluation method as a stated preference technique which involves posing hypothetical questions to respondents. During the interview; Primary cook was presented with pictures of Chitetezo Mbaula, TLC Rocket Stove and Portable Rocket Stove along with the description of their associated features and attributes. Primary cook was asked to choose a preferred stove among the three stoves. The respondent was then told of the stove`s prevailing market prices of the preferred stove and asked to state his/her WTP. This information was used along with other socioeconomic data that were collected to conduct the analysis

Chitetezo Mbaula (L), TLC Rocket stove (C) and Portable Rocket Stove (R)

METHODOLOGY Data Sources: Empirical Models 404 household questionnaires collected in June, 2016 from TAs Likoswe and Chitera Key-informant interviews with Department of Energy Affairs, TLC Green and United Purpose (Concern Universal) Focus group discussion with primary cooks Empirical Models Multinomial Logit Model -to determine factors influencing choice of ICS. Single Bounded Model- to elicit WTP for ICS. Probit Model- To determine factors influencing WTP for each Improved Cookstove.

KEY FINDINGS

Determinants of ICS Choice Variable name Pr(ICS_choice==Chitetezo Mbaula ) = 0.6324 Pr(ICS_choice==TLC Rocket Stove) = 0.2275 Pr(ICS_choice==Portable Rocket Stove ) =0.1401 Marginal Effects Std. Error p - value Ho usehold head a ge (years) 0.0035* 0.0381 0.0848*** 0.0242* 0.0940* 0.0073 0.1140* 0.0894 0.0359** 0.3626* 0.0536 0.0378* 0.0809 0.0020 0.0624 0.0302 0.0132 0.0497 0.0580 0.0585 0.0843 0.0144 0.1915 0.0529 0.0209 0.0563 0.082 0.541 0.005 0.065 0.059 0.900 0.051 0.289 0.013 0.311 0.071 0.151 0.00 48** * 0.0749 0.0 176 0. 0201* 0.0829 0.0863* 0.11 57 015 211 0.5343 ** 0057 0.03 02 0.0727 .0018 0.0564 .0258 0.0115 0.0448 0.0453 0.0459 704 0.01 21 1788 457 0.0183 0.0500 007 0.184 .496 .081 0.064 0.057 12 0.983 0.080 0.003 0.099 0.1 46 13 0.0367 0672 *** 041 0.0111 0.0936** 0016 909 148 0.1721 0.0479 0.0076 082 14 0.0402 .0216 0.0087 0.0327 0.0447 0.0414 637 094 1204 360 0.0145 0.0385 345 0.361 .635 0.735 0.036 0.968 0.153 0.166 0.183 0.602 831 Household head gender Total monthly household expenditure (MK) Firewood collection frequency (trips/week) Number of adult female in the household Firewood source (1=Private land 0=otherwise) Pr imary cook education (1=attained secondary school, 0=otherwise) Cooking behavior (1=cooking on two places, 0=otherwise) Firewood Source distance (Kilometers) Under five children ratio (Total number of under five children/total household size) Household location (1=Chitera TA, 0=Likoswe TA) Household assets value (MK)

Determinants of ICS Choice MLM results revealed that Chitetezo Mbaula is the most preferred ICS seconded by TLC Rocket Stove and Portable Rocket Stove. Choice of Chitetedzo mbaula is influenced by Distance to firewood source from home, firewood collection frequency per week, number of adult females, primary cook education level, household head age, under-five children ratio

Determinants of ICS Choice MLM results revealed that c) Choice of TLC Rocket Stove is influenced by Value of household assets Own source of firewood Choice of Portable Rocket Stove is influenced by monthly income

WTP ESTIMATES Mean WTP estimates Chitetezo Mbaula MK1586 ($2.22) TLC Rocket Stove MK2838 ($3.98) Portable Rocket Stove MK12032 ($16.87) Estimated mean WTP value for Chitetezo Mbaula is far above the presented market price of the stove MK650 ($0.9) Estimated mean WTP for TLC Rocket stove MK2838 ($3.98) is slightly lower than the presented TLC Rocket Stove market price (MK3000 or $4). Estimated mean WTP for Portable Rocket Stove is slightly higher than its market price by MK20.34 ($0.03).

Determinants of WTP for ICS WTP for Chitetezo Mbaula was influenced by; household head sex, total time spent collecting firewood, number of adult female members in the households However, number of firewood collection helpers in the household has a negative effect on WTP. TLC Rocket Stove`s WTP was ; Positively influenced by firewood source distance from home But negatively influenced by age of the primary cooks. WTP for Portable Rocket Stove was; Positively influenced by firewood source distance from home. But negatively influenced by total time spent collecting firewood

Policy Implications/ Messages From our study, there are 4 key findings that have important implications for the Government initiative to distribute 2 million cookstoves by 2020 The study has established that household income increases the probability of choosing ICS in Chiradzulu District. Wider adoption of ICS will therefore require complementary interventions that will raise incomes of households (e.g., income generating activities). The study further establishes that household socioeconomic and demographic differences play an important role in determining choice and WTP for ICS. It is therefore imperative that the dissemination of the ICS should be complemented by consider civic education on benefits of using ICS prior to the distribution.

Policy Implications/ Messages GOOD NEWS is that there high willingness among households to pay above the market price of the ICS. This offers hope for the sustainability of the program. This calls for intensifying training of local artisans/community groups on stove production to ensure the sustained availability/supply of cookstoves in the areas. We also found that distance to firewood source and total time taken to collect firewood increases the WTP for ICS. This again is GOOD NEWS because it shows that ICS are technologies most appropriate in areas with serious firewood scarcity like Chiradzulu District. This calls for the need to extend the current ICS distribution efforts to Chiradzulu and other districts that have serious.

Policy Implications/ Messages c) GOOD NEWS is that there high willingness among households to pay above the market price of the ICS. This offers hope for the sustainability of the program. This calls for intensifying training of local artisans/community groups on stove production to ensure the sustained availability/supply of cookstoves in the areas. d) We also found that distance to firewood source and total time taken to collect firewood increases the WTP for ICS. This again is GOOD NEWS because it shows that ICS are technologies that are most appropriate in areas with serious firewood scarcity like Chiradzulu District. This calls for the need to extend the current ICS distribution efforts to Chiradzulu and other districts that have serious firewood shortage.

Way Forward There are some areas that we further conduct research, both from the SUPPLY SIDE and DEMAND SIDE SUPPLY SIDE: We will conduct research to analyse the production efficiencies of improved cookstoves and its determinants. (Emmanual Tolani) DEMAND SIDE: We want to investigate factors that influence adoption/disadoption and sustained use of improved cookstoves (Christopher Chikowi)

THANK YOU FOR YOUR ATTENTION! FURTHER ENQUIRES: contact: jgrevulo@yahoo.com charlesjumbe@bunda.luanar.mw