Existing studies show that households’ consumption of goods and services is one of the major contributors of emission of greenhouse gases and other environment related problems. Thus, changing the consumption behavior of households can largely contribute to reduce environmental problems. This study looks at to what extent rural households’ willingness to pay (WTP) for fuelwood saving and smoke reducing technology is related to their concern for the environment.
Previous researches in developing countries have studied factors that influence adoption of pro-environmental technologies such improved stoves and also the impacts of these technologies on various households’ outcomes such as welfare and health. However, there are scant studies which deals with the extent households’ purchase of energy efficient technologies in developing countries is motivated by their concern for their environment. Many of these studies deal with households’ environmentally responsible behaviors are from of urban areas of developed countries. Further, most of the previous studies are either based on simple descriptive statistics or using regressions that does not take into account the endogeniety of households concern for environment. This study is filling this gap by conducting a real improved stove purchase experiment in rural areas of southern Tigrai, Ethiopia and using a method that takes into account endogeniety of households concern for environment.