Background: Water fetching and firewood collection are among home activities that are part of the daily routine of many households in rural Ethiopia. Households travel long distances and spend large amounts of time every day for collecting water and firewood. Fetching water and firewood reduce labor available for market related activities such as agriculture that affects production and productivity of these sectors negatively. Better access to water facility and energy efficient technology (such as improved stoves) is expected to release labor for market related activities that can have economy-wide impacts. The objective of this study is to investigate the economy-wide effects of access to water facility and improved stoves.
Methods: The study uses the updated 2004/05 Social Accounting Matrix (SAM) of Ethiopia. The SAM is modified to account for a detailed representation of water fetching, firewood collection and leisure activities and commodities. This study applies a single country Computable General Equilibrium (CGE) model to the updated SAM of Ethiopia. The simulation scenario is a 50% increase in the Total Factor Productivity (TFP) of both water fetching and firewood collection activities due to better access to water infrastructure and cooking improved stoves.
Results: The findings of the study show that better access to drinking water supply and improved stoves reduces labor time spent for water fetching and firewood collection. The released labor from water fetching and firewood collection partly reallocated to leisure consumption and partly to market related activities. Those freed labors that are reallocated to marketed sectors including agricultural and non-agricultural activities leads to increase employment and enhance domestic production. Better access to drinking water and improved stoves also enhances household welfare. Households that allocate a relatively large proportion of labor to water fetching and firewood collection gain relatively more welfare. Macroeconomic indicators such as GDP, total domestic production, absorption and imports are also positively affected due to improved access to water and energy efficient technology.
Conclusions : It is helpful to recognize the economic significance of labor released from water fetching and firewood collection in any developing economy with a limited supply of water facility and access to energy technology.