HYPOTHETICAL WILLINGNESS TO PAY FOR ENERGY ALTERNATIVES IN UGANDA: MARKET INCENTIVES AND POLICY TOOLS TOWARDS ZERO DEFORESTATION AND CLIMATE CHANGE

Abstract

At the height of climate change, the world target of zero deforestation by 2030 seems like a dream in Africa's developing nations, where over 90% of household energy needs depend on wood fuels and charcoal. This is followed by time series increasing demand for round wood. This study conducts a Willingness to Pay for Energy Alternatives (WTPEA) in Uganda, where the populations depend on wood for almost all the energy needs at the household level. This research used a questionnaire to collect and analyze data collected between 2018 and 2019. A total of 1200 responses were collected, coded, and analyzed. The average willingness to pay an amount (WTPA) was 15 USD and the median 10 USD. Most of the respondents were observed to prefer gas and electricity for household cooking. Following a logistic regression, it was found that the socioeconomic characteristic did not impact the Willingness to Pay for Energy Alternatives (WTPEA). However, sex and age were found to have a very weak impact on the WTPEA. The respondents' Willingness to Pay for Forest Conservation (WTPFC) [0.0011] and Knowledge of Forest Functions and services (KFF) [0.0001] were found to have a positive and significant impact on the WTPEA. Ceteris paribus, the Government of Uganda, ought to employ policy tools to boost energy alternatives imports and production in Uganda. This would promote and improve the conservation of virgin Tropical rain forests.