Abstract
Excessive fuelwood harvest is a major cause of deforestation in developing countries. To mitigate this, various preventive measures have been introduced in different countries. The availability of affordable substitutes to the community dependent on the forest for domestic energy consumption may prevent further forest degradation. A stock-dependent optimal control model of fuelwood harvest from a natural forest is presented here and comparative statics has been used to show that the presence of a fuelwood substitute will reduce its harvest and increase the forest stock. The model indicates that the availability of cheaper and high-energy content alternatives for fuelwood can substantially reduce fuelwood extraction from a forest. Also, a lower discount rate and higher cultural and spiritual values (CSV) will keep the optimal forest stock close to its carrying capacity and reduce fuelwood harvest. The model reveals that the maximum sustainable yield of forest stock and the ratio of energy content per unit mass of fuel plays a central role in the fate of forest stock and the level of fuelwood harvest. An empirical example of the Southeast Asian Forest growth model along with Liquid Petroleum Gas (LPG) as a substitute has been used to illustrate the results. The outcomes of this study can be incorporated into forest conservation policies.