Income, poverty and charcoal production in Uganda

We measure the relationships among income, poverty and charcoal production in three charcoal-producing districts of western Uganda. Using household survey data and propensity score matching techniques we find positive and statistically significant correlations between participation in charcoal-related activities and subsequent household income and poverty levels. Charcoal production is found to be especially important for households with low agricultural capacity and limited stocks of human and physical capital. However, in contrast to popular views and results from other studies, we find that those engaging in charcoal production are not necessarily the poorest cohorts in our sample. Our findings have implications for policies aimed at alleviating rural poverty and protecting forests.

Research Highlights
► We measure income, poverty and charcoal production in three districts of Uganda.
► Charcoal production is correlated with household income and poverty levels.
► Charcoal production is important for households with low agricultural capacity.
► Households with limited stocks of human and physical capital are reliant on charcoal production.
► Those engaging in charcoal production are not necessarily the poorest cohorts in the sample.