THINKING beyond the canopy THINKING beyond the canopy

Formalisation of charcoal value chains and livelihood outcomes in Central and West Africa

Jolien Schure, Verina Ingram, Maam Suwadu Sakho-Jimbira, Patrice Levang, K. Freerk Wiersum

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Objective

“To examine the link between formalisation of

charcoal institutions and livelihood outcomes

for actors involved in woodfuel value chains in

Central and West African countries”

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Approach

• Combining: Institutional studies, value chain

analysis and livelihoods approach.

• Charcoal institutions: The formal and informal

regularised patterns of behaviour between

different actors in society that shape access,

rights and obligations related to charcoal

production and trade.

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Formalisation (of charcoal institutions)

Avoid costs of penalties and bribes Promote corruption

Decrease dependence of harvesters Marginalise harvesters

Mitigate negative environmental outcomes

Obstruct effective customary laws

Woodfuel part of urban, environmental, forestry, energy planning

Criminalise extraction practices

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Assumptions

1. Formalisation is likely to advance primarily

urban actors further along the chain.

2. In countries with formalised charcoal

institutions rural actors gain more benefits

than in countries with informal institutions.

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Variable Indicator

Formalisation 1. Existence of written rules and policies dealing with charcoal value chains

2. Degree to which penalties for rule violations are clearly stipulated and enforced

3. Ease and accessibility of formalising

Socio-economic benefits to value chain actors

4. Number of actors involved in charcoal sector

5. Net revenues gained from charcoal production or trade

6. Extent and equity of benefit distribution among actors

Inspired by: Hall and Haas, 1967; Helmke and Levitsky, 2004; Belcher, 2005; Ribot, 1998; Kappel and

Ishengoma, 2006.

Concepts

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Figure 2: Selected urban centres for study on formalisation of charcoal institutions

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Results (1): Formalisation of charcoal institutions

Central Africa West Africa

Woodfuel policies exist related to forest and environment but are largely not implemented (<3% of charcoal under permit)

Woodfuel policies exist, related to forest, environment and energy policy, but Implementation is low (<13% charcoal under permit)

Sector is informal BUT organised according to local rules of access.

Participatory forest management. Differentiated tax incentives. Free riders behaviour.

Unfavourable business environment.

Unfavourable business environment. Importance of political connections even after entering formal system.

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Results (2): Socio-economic benefits to actors

Central Africa

West Africa

>22,000 - >324,000 actors involved per city

13,500 - >50,000 actors involved per city

Large part of household income producers e.g. 75% charcoal producers Kinshasa

Large part of household income producers e.g. 83% charcoal producers Ouagadougou

Relatively equal distribution Unequal distribution with wholesalers and transporters making greatest profits

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Conclusion (1)

• Positive examples: dedicated forest management areas with participatory

approach in West Africa, reinvestment of taxes in social and environmental

projects, rural woodfuel markets with differentiated tax incentives in Mali

and Niger

• Negative unintended outcomes of formalisation: conflicts over tax revenues,

difficulties monitoring and permitting trade, free riders, rich or powerful

urban actors dominating access to permit system, corruption ‘informal’ taxes

deeply embedded, discrepancy between receipts of revenues from taxes

and reinvestments in woodfuel resources and communities.

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Conclusion (2)

• Formalisation advances actors further along the value chain and can

have adverse socio-economic impacts for rural charcoal producers.

• Countries with more formalised charcoal institutions, such as those

in West Africa have systems in place to distribute benefits to rural

actors. However, the implementation of this and actual benefits for

these rural citizens remain low.

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Thank you !

• Website: http://makala.cirad.fr/

• Jolien Schure (j.schure@cgiar.org/ jolien.schure@wur.nl)