Electrification or deforestation? Evidence from household practices in Côte d’Ivoire

This paper investigates the impact of electrification on household practices related to deforestation in Côte d’Ivoire, specifically focusing on the expansion of arable farms and the use of biomass fuels. A theoretical framework inspired by the heterogeneous agricultural households model proposed by Angelsen (1999) is employed to theoretically elucidate the relationship between electrification and the expansion of arable farms. Using data from the latest four waves of the household Living Standards Measurement Surveys (1998, 2002, 2008, and 2015) and a pseudo-panel fixed effects regression model, we find that increased access to electricity significantly reduces both the average size of arable farms and the collection of firewood from forests. These results are robust across various alternative specifications and estimation methods. Moreover, an electrification threshold of approximately 80% has been identified, beyond which the beneficial impacts of electrification on forest loss would disappear.