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Tesafa et al

Journal of Dynamics in Agricultural Research

Available online at

Vol.1(4), pp.29-35, November  2014

Article ID: jdar/14/025

© 2014 Journal Dynamics


Original Research Paper

Economics of renewable energy production and management: Evidences from Bati district in Ethiopia

Fentahun Tesafa1*, Solomon Addisu2, Belayneh Ayele2 and Misganaw Teshager3

1Bahir Dar University, Lecturer in Agricultural Economics Department.

2Bahir Dar University, Lecturers in Natural Resource Management Department.

3Bahir Dar University, Lecturer in Disaster, Risk and Sustainable Development Department.

*Corresponding author.

Received 6 August, 2014; Accepted 16 October, 2014.


The study aims to estimate the economic benefits and the natural resource conservations resulting from introduction of fuel efficient stove and solar lanterns to the smallholder farmers in Bati district, Ethiopia. The data collected from a sample of 156 households were analyzed using descriptive statistics and values of population parameters were projected based on the sample estimates. Accordingly, the results of analysis indicated that introduction of fuel efficient stove to a population of 4,660 households could save annually 1,044,585.6 bundles (about 522,292.8 m3) of biomass and an estimated expenditure of 41,783,424 birr (about 2,089,171.2 US dollar) for firewood consumption. This suggests that use of fuel efficient stove was not only benefiting farmers economically by reducing their expenditures for firewood consumption, but also benefits the entire society by reducing rate of deforestation as well as enhancing the rehabilitation of natural resources in the district. Moreover, use of solar lanterns saved on average 24 liters of kerosene annually per household that is used as a source of light before the project, even more than this under certain conditions (for example, when the household wife gave birth, students used more time to study during night, etc). Introduction of this technology also saved 111,840 liters of kerosene and an estimated expenditure of 4,026,420 birr (about 201,321 US dollar) for fuel and oil consumption and 1,118,400 birr (about 55,920 US dollar) for mobile phone charging annually. This implies that besides conserving depletion of 111,840 liters of non-renewable oil and fuel per annum, use of solar lanterns also improves the livelihood of the farmers by reducing their expenditures for fuel and oil consumption as well as mobile phone charging. These technologies are highly appreciated by the farmers and key stakeholders, for they are affordable, simple to use and have multiple advantages such as reduce deforestation, reduce women work burden, improve family health, improve students academic performance and strengthen their social interactions.

Key words: Economic benefits, renewable energy, fuel efficient stove, solar lanterns and forest resources.