Abstract
Due to deforestation and other related problems, the domestic energy crisis in relation to the unsustainable dependency of biomass energy is becoming one of the serious environmental problems in Ethiopia. Therefore, sustainable production of biomass fuels (especially charcoal) is important for the rural and urban households for their own uses and for business opportunities in the rural livelihoods. Hence this study examined the importance of charcoal making in the rural livelihoods and its economic significance comparing with crop production. The study also investigates the drivers of shifting the crop-based economy to a charcoal-making household economy.
The interview questioner was prepared to collect information about the drivers of shifting crop-based economic dependency to charcoal producing economy and its economic significance. 205 households gave their response to the questioner from two kebeles (Gendaweha and Gafera) of Fajita Lekoma district, Awie zone, Amhara region. In addition, supportive documents were collected to generalize the economic contribution of charcoal production in rural livelihoods. The result shows that the gross mean annual income generation per hectare of each farmer from crop production was 10351.22birr and the annual cost of crop production is per hectare was 4000 birr the net annual income generation was 6,351.22 birr. Similarly, the gross mean annual income generation per hectare of each farmer from the charcoal production was 27273.17 birr and the cost for annual charcoal production was 12,000birr the net annual income generation of charcoal production was 15,273.17birr. The net mean annual income generation of charcoal production per hectare was 2.4 times the crop production. Additionally, from the total participants of this study, more than 95 percent of rural HH responded that productivity loss by erosion is the main driver to shift from crop to charcoal production. Therefore, charcoal production is a better business opportunity than crop production in the study area specifically by its financial return.
Keywords: Agriculture, Biomass fuels, Charcoal, Energy, Sustainable production.
