Beyond fuelwood savings: Valuing the economic benefits of introducing improved biomass cookstoves in the Purépecha region of Mexico

Half of the world population relies on biomass for cooking, with very significant health as well as climate change impacts. Improved cookstoves have been disseminated as an alternative to reduce these impacts. However, few detailed studies about the economic benefits of improved cookstoves (ICS) interventions, including environmental and health co-benefits, exist to date. In this paper we perform a comprehensive economic evaluation of a dissemination program of ICS in rural Mexico. The resulting cost-benefit analysis (CBA) of the Patsari improved cookstove is presented, utilizing estimation of direct costs and benefits, including fuelwood savings, income generation, health impacts, environmental conservation, and reduction in greenhouse gas emissions. The analysis is based on comprehensive data obtained through monitoring studies carried out in the Study Area from 2003 to the present. Results show that Patsari cookstoves represent a viable economic option for improving living conditions of the poorest inhabitants of rural Mexico, with benefit/cost ratios estimated between 11.4:1 and 9:1. The largest contributors to economic benefits stemmed from fuelwood savings and reductions in health impacts, which constituted 53% and 28% of the overall benefit, respectively.