Modeling the Choice to Switch from Fuelwood to Electricity Implications for Giant Panda Habitat Conservation

Abstract:

Despite its status as a nature reserve, Wolong Nature Reserve (China) has experienced continued loss of giant panda habitat due to human activities such as fuelwood collection. Electricity, though available throughout Wolong, has not replaced fuelwood as an energy source. We used stated preference data obtained from in-person interviews to estimate a random utility model of the choice of adopting electricity for cooking and heating. Willingness to switch to electricity was explained by demographic and electricity factors (price, voltage, and outage frequency). In addition to price, nonprice factors such as voltage and outage frequency significantly affect the demand. Thus, lowering electricity prices and increasing electricity quality would encourage local residents to switch from fuelwood to electricity and should be considered in the mix of policies to promote conservation of panda habitat.