Modelling the effects of climate policy on firewood collection and women’s welfare in developing countries

Abstract

Climate policies such as carbon taxes for emissions reduction could be detrimental to social welfare in developing countries. High energy prices could induce substitution towards traditional solid fuels such as fuelwood for cooking. Given fuelwood is primarily collected by women in low- and middle-income countries, climate policies may particularly affect women’s welfare. This article reviews the empirical evidence on climate policies, energy use and women’s well-being. Further, I develop a theoretical framework to characterise the potential effects of climate policy and complementary social policies on women’s welfare. The theoretical results show provision of clean cooking technologies and improved biomass cook-stoves, when complementary to fuel taxes, could improve women’s welfare and confer health and climate benefits in developing countries. The predictions of the theoretical framework are validated in the empirical literature.