Cleaner Cooking Camp 2018|June 5-7, 2018 ANALYSING THE PRODUCTION EFFICIENCY OF IMPROVED COOKSTOVES IN MALAWI: A CASE OF CHITETEZO MBAULA PRODUCTION GROUPS By Emmanuel Tolani Cleaner Cooking Camp 2018|June 5-7, 2018

Outline Introduction Problem Statement Objectives Justification Methodology Expected Outcome

Introduction Solid fuels are source of energy for cooking purposes to almost half of the world’s population. Traditional ways of cooking using these fuels result to incomplete combustion which releases greenhouse gases and other incomplete combustion products. These products have been found to be harmful to both human health and climate. Indoor air pollution in Malawi is estimated to be around 226 μg/m3 (Fullerton et al, 2009). acceptable level by WHO is 25 μg/m3. Deforestation in Malawi is increasing at a higher rate which is estimated at 3.2% (Malinski, 2008) Leading to scarcity of firewood Different organisations and other development agents are promoting the adoption of improved cookstoves (ICS) in order to address these problems. Chitetezo Mbaula: Most widely promoted portable efficient cookstove in Malawi as it is more affordable to poor rural household than other stoves Comparatively easily made locally using locally available resources

PROBLEM STATEMENT Five years down the line since NCSC was created, only 879,711 improved cookstoves have been reported to be produced (energypedia, 2018). Yet we have two years only to reach the adoption target of 2 Mio Other studies have found that ownership of improved cookstoves in Malawi are strongly influence by the availability (Meyer, 2015; HEDON, 2014). It is against this background that the need to explore effective ways of producing improved cookstoves should not be undermined.

PROBLEM STATEMENT CONT’D The GoM set a policy of strengthening the capacity of local producers. It is envisaged that such developments would increase the production levels thereby meeting the demand for the stoves. However, such efforts would be undermined by inefficiency of how the resources are used in the production process. Efficiency is also very crucial in sectors characterised by resource constraints. Mpofu, (2015) reported that Chitetezo Mbaula production groups face various challenges among which include lack of inputs. It is therefore imperative to conduct a study analysing the production efficiency of Chitetezo Mbaula cookstove producers This study seeks to answer the following research questions: Are Chitetezo Mbaula production groups in Malawi technically, allocative and cost efficient? How does institution and producer socio-economic characteristics affect the technical, allocative and cost efficiency levels of Chitetezo Mbaula production groups? Cook Stoves Road Map is strengthening the capacity of local producers

OBJECTIVES Main Objective To analyse the production efficiency of Chitetezo Mbaula production groups in Malawi Specific Objectives To analyse the technical, allocative and cost efficiencies of Chitetezo Mbaula cookstove production groups. To determine the factors that the influence technical, allocative and cost efficiency levels of Chitetezo Mbaula cookstove production groups.

HYPOTHESES Chitetezo Mbaula production groups in Malawi are technically, allocative and cost inefficient. Socio-economic, institutional and demographic factors do not influence the technical, allocative and cost efficiencies of Chitetezo Mbaula production groups in Malawi.

STUDY JUSTIFICATION Guidance on what level of inputs combination ensures optimum production. Advance the understanding of producer differences and prospects to improve producer efficiency in using the resources of production. Help to pinpoint prospects and limitations that can be used as input information to devise strategies that promote ICS production. Developing and restructuring interventions for improved cookstove production

METHODOLOGY Study Area Central region: Dedza, Kasungu and Salima districts Southern region: Nsanje, Balaka, and Mulanje districts Purposively chosen as they have considerable amount of Chitetezo Mbaula producers to suffice the required sample.

Where Z =1.96 for 95% CI, P=0.5, q=1-p, e=0.09 and N=217 METHODOLOGY CONT’D Sampling Technique Cluster sampling technique to draw the sample of producers to be studied. Cluster- districts Using a simple random sampling (SRS) method adopted from Kothari, (2004): Where Z =1.96 for 95% CI, P=0.5, q=1-p, e=0.09 and N=217 n=67 Considering a Design effect of 2 and 10% increase for non-respondents: n=150 P is the population probability e is the margin of error

Table 1: Summary of sampled producers District No. of Producers Sample Nsanje 42 29 Mulanje Balaka 28 19 Dedza 40 Salima 39 27 Kasungu 26 18 Total 217 150 Proportional to population size (PPS) technique has been used to determine the sample size from each district

DATA ANALYTICAL TECHNIQUES Efficiency Estimation Stochastic production and cost frontier Models will be used Definition of Terms in the study Production efficiency: The management of input resources in producing a given product. Technical Efficiency perspectives. input conserving oriented: Firm’s ability in producing a given level of output with least input quantities. output-expanding oriented: Maximum production of outputs from a given level of inputs . Allocative Efficiency: Choosing the optimal combination inputs in as far as input and output prices are concerned. Cost Efficiency: ability of the producer to produce a given level of output at the lowest cost possible.

Variables for Efficiency Estimation Description Expected Sign Dependent Variables Technical Efficiency Model   LnY Log of total quantity of Chitetezo Mbaula produced per month. + Cost Efficiency Model LnC Log of total cost incurred to produce a given quantity of Chitetezo Mbaula produced per month. Independent Variables Lnf Log of total quantity of firewood used to produce a given amount of Chitetezo Mbaula produced LnCl Log of total quantity of Clay used to produce a given amount of Chitetezo Mbaula produced LnL Log of total quantity of labour used to produce a given amount of Chitetezo Mbaula produced Lnw Log of total quantity of Water used to produce a given amount of Chitetezo Mbaula produced Lnfc Log of total Cost incurred to purchase firewood - LnClc Log of total Cost incurred to purchase Clay soil LnLc Log of total Cost incurred to pay for labour Lnwc Log of total Cost incurred to purchase Water

Determinants of Efficiency Levels One stage technique. Estimation of efficiency levels and its determinants will be conducted simultaneously.

Variables for determinants of Efficiency levels Model Description Expected Sign Dependent Variables   Technical Efficiency Log of TE indices + Cost Efficiency Log of CE indices Allocative Efficiency Log of AE indices Independent Variables Years of operation Log of group years of operation Group size Log of group size Trained Member Ratio Log of trained group member proportion Amount of Credit Log of credit amount Distance to nearest market Log of distance to nearest product market - Stove Price Log of Chitetezo Mbaula selling price in MK Distance to clay source Log of distance to clay source

EXPECTED OUTCOME Unveil useful information in scaling up the production of Chitetezo Mbaula Cookstove in the country. Thus, guidance on optimal combination of inputs, and efficiency levels and their determinants.

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