Bioenergy and rural development: The role of agroforestry in a Tanzanian village economy

•To explore the integration of agroforestry in a village economy.•To evaluate income effects of bioenergy crops compared to firewood systems based on an environmentally extended SAM.•Environmental accounts for firewood extraction distinguished by stock changes of private agroforestry and public forest.•The highest household income effect derives from agroforestry households using as a source of firewood and fruits.•The non-food tree cultivation activities have been found to release the pressure on wood deposits (private and public).

Recent papers indicate that decentralized bioenergy crop production offers increased market access and income diversification strategies for the rural population. The analyses concentrate on the potential effects of newly discussed crops such as Jatropha curcas, cassava, and sugarcane on macro level. Thereby two aspects are neglected, the income effects on micro level, and the integration of traditional firewood production systems for comparison. To fill this gap, an Environmentally Extended Social Accounting Matrix (ESAM) at the village level is developed and applied to a rural village in Tanzania. The objective is first to explore the integration of agroforestry systems in rural smallholder systems and second to analyze income effects of agricultural biomass production for bioenergy purposes in comparison to firewood production. In order to distinguish the use of firewood from public and private tree resources, environmental accounts for changes in tree stocks (public and private) are included. Findings indicate the importance of including common firewood production as a reference point. The highest income effect for the poorest households derives from agroforestry, which households use as a source of firewood and fruits for sale or home consumption, followed by J. curcas, sugarcane and finally cassava. Agroforestry in general has been also found to substantially release the pressure on public forest reserves.