Households’ willingness to pay for solar cookers as a remedy to conflict-induced deforestation in peri-urban districts of Tigray

Using solar cookers as an alternative energy source for cooking could lead to reduced reliance on traditional fuels, lower energy costs, and positive environmental impacts. However, it is unclear what households are willing to pay (WTP) for solar cookers and what determines their decision. In the study, we randomly selected 252 households in two peri-urban districts of Tigray. A multiple-bounded contingent valuation (CV) survey along with follow-up questions is employed to elicit relevant data. Interval regression models are applied to predict variables influencing maximum WTP. The findings indicate that higher effective labor, livestock wealth, wage income, and charcoal consumption raises WTP. Conversely, social capital and living far from all-seasons roads have a diminishing effect on the expected households’ maximum WTP value for solar cookers. Participation in community organizations appears to decrease WTP, suggesting a potential peer effect that inclines towards lower WTP. Further, the decline in acceptance rate as the WTP bids increase indicates that higher prices lead to decreased demand, which is in line with standard economic theory. In the study area, where community forests are degraded due to prolonged armed conflict, the acceptance rate for solar cookers is high. Despite the WTP for the technology being promising, there is a tendency towards the lower offer.