Deforestation in Ethiopia has resulted in growing fuel scarcity and higher firewood prices in urban centers. Urban centers have long been dependent on the rural hinterlands for their fuel. The use of biofuels of rural origin covers about 90% of the urban fuel use. The dependence of urban centers on their rural hinterlands has aggravated the deforestation. One response to reducing the pressure of urban centers on their rural hinterlands could be through substitutions between or switching from one fuel to another, i.e., through energy transition. For example, through substituting away or switching from fuelwood to electricity. Electricity as cooking fuel is cleaner and do not cause deforestation.
In the literature, the transition from traditional to modern fuels has often been conceptualized as a relatively straightforward three-stage process; with woodfuel the predominant energy source in stage one. Stage two is marked by local deforestation, i.e., decreasing wood availability, and the emergence of markets for such ‘transition’ fuels as charcoal and kerosene. Stage three is characterized by developed markets, rising incomes, and large scale fuel switching to LPG and electricity. However, the argument in here is that it might not be that simple and straightforward and that the extent of the environmental and health effects (positive externalities) generated thereof might be conditioned by technology adoption.
