Traditional energy technologies and consumer products contribute to household well-being in diverse ways but also often harm household air quality. We review the problem of household air pollution at a global scale, focusing particularly on the harmful effects of traditional cooking and heating. Drawing on the theory of household production, we illustrate the ambiguous relationship between household well-being and adoption of behaviors and technologies that reduce air pollution. We then review how the theory relates to the seemingly contradictory findings emerging from the literature on developing country household demand for clean fuels and stoves. In conclusion, we describe an economics research agenda to close the knowledge gaps so that policies and programs can be designed and evaluated to solve the global household air pollution problem.

REDD + is one of the tools under development to mitigate climate change, but it is not yet clear how to appropriately bring in the approximately 25 per cent of developing country forests that are managed by communities. Drawing on the economics of collective action literature, the authors attempt to shed light on whether forest collective action itself sequesters carbon. Using satellite imagery combined with household and community data from Ethiopia, they examine whether community forests (CFs) with high levels of collective action attributes known to be associated with better management have more carbon than other systems. Although these results should be considered indicative due to the nature of the data, the analysis suggests that in the absence of dedicated sequestration policies the quality of local-level collective action offers at best marginal carbon benefits. Specific incentives like REDD + may therefore play important roles in delivering climate change benefits from CFs in low-income countries.

Using data from the nearly 6000 households in the Nepal Living Standards Survey of 2010–11 we find that the mean reduction in household firewood collection associated with use of a biogas plant for cooking is about 1100 kg/year from a mean of \(\sim \)2400 kg/year. This estimate is derived comparing only households with and without biogas in the same village, thus effectively removing the influence of many potential confounders. Further controls for important determinants of firewood collection, such as household size, per capita consumption expenditure, cattle ownership, unemployment etc. are used to identify the effect of biogas adoption on firewood collection. We derive bounds on omitted variable bias using the proportional selection assumption. Our central estimate is much smaller than those in the previous literature, but is still large enough for the cost of adopting biogas to be heavily subsidized via carbon offsets at a modest carbon price of $10/tCO\(_2\)e, when using central estimates of emission factors and global warming potentials of pollutants taken from the scientific literature.

This paper analyzes behavioral change spurred by better common property forest management (CPFM), with a focus on on-farm tree planting. Results from our theoretical household model suggest that on-farm trees, which provide products that can substitute for those from common forests, should be stimulated by better CPFM systems. We test this finding using data from a household survey conducted in the Bolivian Andes in 2000. We find that better CPFM at its highest level of aggregation is positively correlated with more and higher quality on-farm trees. In terms of less aggregated indices, relatively few variables are significant, though two particularly important aspects of forest property rights – access clarity and the existence of formal penalties for overuse – actually reduce on-farm tree planting. We therefore conclude that in general synergies between individual CPFM components are most critical for behavioral change, but improvement of property rights aspects of CPFM may give counter-intuitive results.