Wood Energy's Role in Cebu Economy
Wood Energy's Role in Cebu Economy
I
Trends in the socio-economic n many South and Southeast Asian It has a total population of 3.356 million,
role of wood energy in Cebu economies, some 20 to 80 percent of consisting of about 676 000 households
Province, studied in 1992 and the energy demand is met by wood. with an average household size of five
revisited ten years later. Woody biomass tends to be used in tradi- people and a population density of 660
tional ways. For the most part, the entire persons per square kilometre (National
system from production to consumption of Statistics Office, 2002). Its capital, Cebu
woodfuel comprises informal unregistered City, is the second largest city in the
activities involving several sectors of the Philippines.
community. In areas that have a market for Cebu is characterized as the trade and in-
woodfuel, its production, distribution, trade dustry hub of the central and southern Phil-
and consumption reflect a flow that has ippines, since only about 30 percent of the
proved its efficiency through time. How- land is suited for agriculture. Approxi-
ever, in some other areas where there is no mately three-fourths of Cebu’s land area
such market, woodfuel has not become has a slope of more than 18 percent, and
commoditized. much of the island is dominated by a cen-
Woodfuel is not only used in poor and rural tral mountain range that rises to over
households. In many towns and metropoli- 1000m above sea level (Provincial Plan-
tan areas, woodfuel is widely used either as ning and Development Staff, 1987). Dur-
main, substitute or supplementary fuel by ing the nineteenth century, Cebu was al-
low-, middle- and high-income groups. ready the focal point for trade and economic
In the Philippines, fuelwood, charcoal and networks for the Visayas and Mindanao
other forms of biomass energy make a ma- (the central and southern island groups of
jor contribution to meeting the energy re- the Philippines), linking them to markets
quirements of the population. The collec- in Manila, the United States and Europe
tion, distribution and trade of these fuels (Cebu Yearbook, 2002).
also provide income and employment to Cebu is unique in the fact that this island
millions of Filipinos. Despite this impor- province has long been deforested. The
tance, relatively little is known about how World Bank (1989) reported that Cebu was
woodfuels are produced, managed, traded 99.6 percent deforested. As long ago as
and consumed in the country. No single 1870 the island was reported to be 94 per-
government agency is in charge of devel- cent deforested (Ahern, 1901; Poffenberger,
oping policy regarding woody biomass en- 1990). If Cebu is known to have had no
ergy, since woodfuel is often considered pristine forest for at least the past century,
inferior and a major cause of deforestation how is it that the woodfuel industry appears
and environmental degradation. to be thriving? How is it that hundreds of
This article illustrates the socio-economic families depend on the wood energy indus-
role of wood energy in the Philippines try to provide them with incomes and live-
through the results of a case study carried lihood activities? Where do the wood re-
out in Cebu Province in 1992 and revis- sources come from and for what are they
ited in 2002. used? Who are the key players? What socio-
economic contribution does wood energy
CEBU provide to the local economy?
The island province of Cebu is situated in
the central Philippines, about 550 km WOODFUEL IN CEBU
southeast of Manila, the capital. It is a nar- Residential, commercial and
Elizabeth M. Remedio is Professor row strip of land about 5088km 2 in area, industrial uses
in the Department of Economics,
University of San Carlos, Cebu City, stretching 220km from north to south and Woodfuel is a major source of energy in
the Philippines. only 40 km in breadth at its widest point. the province, particularly as household
cooking fuel. 1 Reasons include its leucocephala, Leucaena glauca, Gliricidia ies at various levels, provides income, jobs
affordability (it is also gathered free in some sepium, Gmelina arborea and Swietenia and livelihood to hundreds of families both
cases) and the taste and preference of con- macrophylla. The practice of coppicing is in the countryside and in the urban centre.
sumers. It is also used as a reliable supple- found among many woodfuel producers, The system of woodfuel trading in the prov-
mental and/or backup fuel. Some house- but woodfuel coppice lands are declining ince varies depending on the location and
holds, however, do not use woodfuels or as a result of land conversion, e.g. real es- distance of woodfuel production sites, the
are reducing its use because of its incon- tate development and establishment of presence of growers, manufacturers, rural
venience, smoke and messiness. mango plantations. Woodfuel coppice and urban traders, the type of fuel being
In the commercial and industrial sector, a lands are normally harvested in rotational traded and regulatory policies governing
large number of prepared-food vendors patches every two to five years. Trees are transport of woodfuel. In general, the
such as restaurants, vendors of barbecue cut and carried or transported to leveled woodfuel marketing system in Cebu ap-
and lechon (traditional roasted pig, served areas where they can be split, bundled ac- pears to be competitive and efficient.
at celebrations and increasingly sold com- cording to size of fuelwood or converted The existence of local woodfuel entrepre-
mercially), bakeries, makers of poso (rice into charcoal. neurs willing to engage in the business is
steamed in coconut leaves) and noodle fac- In Cebu, charcoal makers generally use one decisive factor in determining the ex-
tories depend on woodfuel. Institutions local techniques. In the ham-ak method, tent of biofuel production in a given area.
such as hospitals, schools and prisons and wood is piled on a slope above ground and Woodfuel trade in the province provides
industries such as blacksmiths and iron gate then covered with grass, weeds, banana income and employment to an estimated
manufacturers, fashion accessory manufac- leaves and a layer of soil before fire is put 45000 to 65000 people. In general, the
turers and rattan furniture makers are to it. In the tinabonan approach, a char- woodfuel marketing system in Cebu appears
among the highest consumers of scrap coal pit is dug on a slope, filled with wood to be competitive and efficient. Roughly
wood, coconut wood and charcoal. and covered with a metal sheet after light- 150000 to 200000 tonnes of fuelwood (in-
ing. The ham-ak approach generates more cluding coconut fronds) are sold per year,
Production and management and better-quality charcoal, but requires and roughly 40000 to 50000 tonnes of
Contrary to common belief, not all close monitoring, 24 hours a day over two charcoal. The value of commercial biofuel
woodfuel is sourced from natural forests. to three days. Tinabonan has the advan- trade in the province is between US$9.3
Woodfuel production takes place within tage of requiring less attention. million and $12 million per year, and Cebu
several types of land use, such as tree fal- is only one of more than 60 provinces in
low and shrub fallow, woodlots, tree plan- Trade and distribution the country (although the use and produc-
tation sites, reforestation sites, agroforestry In Cebu, trade in woodfuel has been a thriv- tion of biofuels may vary among provinces).
systems (fruit trees or scattered trees) and ing and sustainable informal-sector indus- Charcoal making and biofuel trade and
brushland and shrubland areas. Most of the try for at least five decades. The rural-to- distribution also provide seasonal income
woodfuel production in Cebu originates urban trading and distribution network (see in many areas of the province, particularly
from a handful of species: Leucaena Figure), involving numerous intermediar- for farmers whose primary income comes
from growing and trading mangoes.
Coppicing of Gliricidia
and Leucaena species WOOD ENERGY TRENDS IN THE
is a common practice
among woodfuel
CITY AND PROVINCE OF CEBU,
producers in Cebu 1992 TO 2002
Province, the A 1992 study looked into the patterns of
Philippines; here, rapid
regrowth of the
production, consumption, trade and distri-
coppiced stumps is bution of woodfuel on the island of Cebu
visible just five weeks
after harvest, with
smaller branches left
1
on the slope The use of other biomass residues besides wood
is not great except for coconut fronds. Hence, the
E. REMEDIO
T.G. BENSEL
In Cebu, woodfuel trade has
been a thriving informal-sector
industry for decades, providing
income and employment to
thousands of entrepreneurs: Wood coppice lands Agroforested lands
Left, sacks of charcoal of
various quality grades and from
different tree species displayed Rural traders
for sale in a typical urban
charcoal market, Cebu City; Brushlands/ Woodlots/tree
Centre, an urban woodfuel scrublands plantations
trader selling sacks of
scrapwood and wood shavings,
Cebu City;
Right, a fuelwood vendor’s Direct to urban consumers Direct to urban consumers
display, Cebu City and traders and traders
Transportation
Retailers Wholesalers
Commercial/industrial
Households establishments
(Bensel and Remedio, 1993). It came to ple fuels among households and Major species grown were Leucaena
an eight-point conclusion: commercial establishments was also leucocephala and Gliricidia sepium.
• Fuel choice decisions among urban prevalent. • Coppicing was the main harvesting
households were strongly affected • The commercial and industrial sec- practice, done on a two- to five-year
by income levels, although taste tor depended slightly less on rotation basis.
preferences and stove costs were also woodfuel than did households, al- • The rural woodfuel marketing and
important. though woodfuel was used by many transport system was highly com-
• A fuel-switching trend away from businesses, particularly food ven- petitive and a major source of em-
woodfuel towards liquefied petro- dors and barbecue stalls. ployment.
leum gas (LPG) and kerosene was • Most woodfuel came from planted • The urban woodfuel market also in-
already observed. The use of multi- trees and managed agricultural lands. cluded hundreds of urban woodfuel
Gender implications of Rural energy, household time allocation, tend to be considered heavy. Fuelwood gath-
wood energy use in health, nutrition and gender form a web of ering for home consumption and subsist-
developing countries complex interrelated issues that merit seri- ence is considered a light task, even if women
ous attention in the formulation of develop- walk long distances with heavy head loads
ment strategies. for hours; head loading is exclusively done
Energy is a basic human need, and in many by women. Heaviness therefore appears to
regions of the world the burden of energy be related not to the weight of the load, but
poverty is borne by women and children to the strength of the gender performing
(FAO, 1999a). It is usually the women and the task.
children who spend long hours collecting The tasks carried out by men in cutting
fuelwood, often foregoing other valuable fuelwood are considered risky and danger-
activities such as farming, education, rec- ous, hence not safe for women to perform.
reation and rest. Inhaling heavy smoke while cooking, which
Recent studies (FAO, 1999b) comparing adversely affects health, and head loading
FAO FORESTRY DEPARTMENT/FO-0258/T. HOFER
perceptions about the labour involved in are not considered risky or dangerous. The
urban and rural woodfuel systems revealed general observation was that whenever trad-
gender-sensitive distinctions in the defini- ing or cash was involved, women’s safety
tion of heavy versus light work and safe ver- was a concern. However, most activities
sus risky work conditions. related to trade or distribution of biofuel
Group discussions with communities in for cash in some kind of market, including
FAO’s Regional Wood Energy Development collection and transport, do not usually in-
Programme for Asia and the Pacific revealed volve women. On the other hand, the do-
that woodfuel-related tasks exclusively done mestic use of fuelwood, from production and
by men – tree climbing, tree felling, cross- collection up to consumption, is almost en-
In developing countries, cutting large trunks of trees and long- tirely dominated by women and children.
fuelwood collection is almost
entirely dominated by women distance transport using conveyances such No cash involved – only women and chil-
and children (shown, India) as tractors, bullock carts and hand cars – dren’s labour.
retailers and wholesalers, and was is perceived to be relatively afford- • Household income is still a determi-
quite competitive. able, convenient to use, clean and ef- nant of household fuel choices.
• Woodfuel policy on Cebu was prem- ficient. However, the use of multiple Higher-income households on the
ised on the belief that woodfuel was a fuels among households continues. whole prefer to use LPG and/or elec-
major contributor to environmental • The use of fuelwood as primary house- tric cooking devices (rice cookers).
degradation on the island. The re- hold cooking fuel in Cebu City has However, most lower-income house-
search results suggested that this was declined from 31.8 percent in 1992 to holds that could not afford LPG in
not really the case, and policy changes 23 percent in 2002, and the use of 1992 could afford it in 2002, which
were recommended. fuelwood as a secondary fuel has also suggests that financial obstacles to
In contrast, a follow-up study ten years declined, from 45.9 to 36.7 percent obtaining LPG have been eliminated
later (Remedio and Bensel, 2002) indicated (Table 1). or at least reduced.
the following trends: • Charcoal as a primary residential • Total household fuelwood use in Cebu
• Households are tending to switch from cooking fuel declined from 5.6 to 3.4 City declined from 55480 tonnes in
so-called inferior fuels (e.g. fuelwood) percent from 1992 to 2002. However, 1992 to 53492 tonnes in 2002. In con-
to premium fuels (e.g. LPG). the use of charcoal as a secondary fuel trast, household charcoal consump-
• LPG is now the most important cook- increased from 53.4 percent in 1992 tion in the city increased from 7966
ing fuel among households because it to 67.3 percent in 2002 (Table 1). tonnes in 1992 to 8781 tonnes in 2002
(Table 2). In the industrial/commer- TABLE 1. Primary and secondary household cooking fuels used at all income
cial sector, the decline in fuelwood levels, Cebu City, the Philippines, 1992 and 2002
use has been more pronounced, from
Fuel type As primary fuel As secondary fuel
16 046 tonnes in 1992 to 6 596 tonnes
1992 2002 1992 2002
in 2002, particularly because of the (n=603) (n=379) (n=603) (n=379)
switch away from fuelwood among
No. % No. % No. % No. %
eateries, bakeries and restaurants. In
some cases, the switch was due to re- Fuelwood 171 31.8 87 23.0 277 45.9 139 36.7
strictions related to smoke emissions Charcoal 32 5.6 13 3.4 322 53.4 255 67.3
in public places. Charcoal consump- Kerosene 115 19.9 77 20.3 183 30.3 126 33.2
tion increased also in this sector, from
LPG 225 38.0 194 51.2 251 41.6 207 54.6
6618 tonnes in 1992 to 14 261 tonnes
Electricity 4 1.0 7 1.8 60 10.0 94 24.8
in 2002.
• The woodfuel industry and trade in Others 56 3.7 1 0.3 – – 61 16.1
the province is still a significant source Total 603 100.0 379 100.0 1 093 – 882 –
of income and employment.
Source: Remedio and Bensel, 2002.
CONCLUSION
The consumption, production and trade of TABLE 2. Summary of household biofuel consumption for Cebu City, the
woodfuel continues to be an important Philippines, 1992 and 2002
source of livelihood in the Philippines. The
use of multiple fuels has a long tradition, Fuel type Estimated total Household Per capita
household use consumption rate consumption rate
and woodfuel is used as either primary or (tonnes/year) (kg/household/year) (kg/person/year)
secondary fuel at the household level. 1992 2002 All Primary fuel All Primary fuel
users users only users users only
The case study of Cebu is a good exam-
ple. Despite the rapid urbanization of Cebu 1992 2002 1992 2002 1992 2002 1992 2002
City, thousands of households in the City Fuelwood 55 480 53 492 1 183 988 1 757 1 155 204 204 303 239
and Province of Cebu continue to depend
Charcoal 7 966 8 781 109 74 380 228 19 15 65 47
on woodfuel as their primary or secondary
cooking fuel. Commercial and industrial Source: Remedio and Bensel, 2002.
food preparation establishments also
largely depend on woodfuel. The intricate,
multilevel woodfuel system provides in- port permits and protected areas tend to of commercial woodfuel supply, distribution
come and jobs for thousands of families and discourage woodfuel producers from more and use in the city and province of Cebu
saves the economy millions of dollars in efficient and sustainable management of Philippines. FAO Regional Wood Energy
foreign exchange every year by prevent- forest and tree resources. ◆ Development Programme, Field Document
ing the need for imported fossil fuels. No. 42. Bangkok, Thailand, FAO Regional
Notwithstanding the significance and Office for Asia and the Pacific.
importance of bioenergy in both local and Cebu Yearbook. 2002. Cebu City, the
national economies, there is still a need to Philippines, Sun Star Publishing.
improve the productivity and efficiency of FAO. 1999a. The challenge of rural energy
woodfuel production as it impacts on the poverty in developing countries. Rome.
environment. Likewise, government poli- Bibliography FAO. 1999b. Gender aspects of woodfuel
cies on the cutting and transport of flows in Sri Lanka: a case study in Kandy
fuelwood need to be reviewed. While Ahern, G.P. 1901. Special report of Captain District. FAO Regional Wood Energy
many of these policies may be intended George P. Ahern. Washington, DC, USA, Development Programme, Field Document
to underscore environmental conservation Forestry Bureau, Philippines. No. 55. Bangkok, Thailand, FAO Regional
goals, some regulations involving trans- Bensel, T.G. & Remedio, E.M. 1993. Patterns Office for Asia and the Pacific.
Julije Domac is the coordinator of the Croatian Biomass Use Programme (BIOEN) and the Leader of
IEA Bioenergy Task 29 at the Energy Institute “Hrvoje Pozar”, Zagreb, Croatia.
growing sectors. A study carried out in 1998-1999 predicted that in the European Union the use
FAO FORESTRY DEPARTMENT/CFU000584/R. FAIDUTTI
of renewable energy technologies, including bioenergy, will more than double by 2020, and that
this increase will lead to the creation of more than 800 000 jobs in the bioenergy sector by 2020
(Directorate General for Energy of the European Commission, 1999). The use of biomass for
power or heat has the potential to create 323 000 jobs by 2020, while 515 000 jobs could be
created in the provision of energy crops or forest or agricultural wastes as fuel. This predicted
employment impact is far greater than that for other renewable energy sources (Table 2). The
analysis assumed that expansion of biological fuel sources occurs without displacing employment
in conventional agriculture and forestry. However, constraints pertaining to significant capital
costs (Sims, 2002), the high cost of education and the availability of commercial technology all
have to be overcome.
In Brazil, charcoal production contributes In closing, it should be noted that at the local level bioenergy production and use may have other
significantly to national employment –
shown, charcoal workers amassing wood significant implications besides employment and monetary gains (social, cultural and environmental)
scraps in the Tailandia region which are not tractable to quantitative analysis and are therefore omitted from most impact
assessments.
TABLE 1. Investment cost of TABLE 2. Predicted impact on employment from bioenergy and from other
employment in different energy renewable energy technologies, European Union (new net full-time jobs relative
sectors, northeastern Brazil to 1995 base)
Field of job creation Investment cost per Energy type 2005 2010 2020
job created
(thousand US$)
Solar thermal heat 4 590 7 390 14 311
Biomass energy, particulates and many kinds of harmful gases, comes (Albalak, Frisancho and Keeler, 1999;
which are potentially hazardous products of Perez-Padilla et al., 1996; Mishra, Retherford
indoor air pollution incomplete combustion (PICs). As a result, and Smith, 1999; Mohan et al., 1989;
the cook – usually a woman – and small chil- Mavlankar, Trivedi and Gray, 1991). The
and health dren in the home are exposed to high levels World Health Organization (WHO) has esti-
of indoor air pollution. mated that as many as 2 million people in
Results from studies carried out in develop- developing countries, the majority under five
A. Koopmans
ing countries indicate that particulate concen- years of age, die prematurely every year from
trations from traditional biomass-using stoves exposure to the combustion products of
Households that use biomass are often ten or more times higher than the household solid fuels (Albalak et al., 2001).
energy require efficient stoves standards set by the United States Environ- The environmental burden of disease caused
to reduce smoke, particles and mental Protection Agency (Albalak et al., by indoor air pollution is second only to prob-
gases that are hazards to the 1999). Exposure to these high levels of pollu- lems of water and sanitation (see Figure).
health of women and children. tion has been consistently associated with Besides being hazardous to human health,
acute respiratory infections, the largest sin- PICs are at the same time greenhouse gases.
gle-category cause of morbidity and mortality Thus reducing PIC levels will not only benefit
Biomass (wood, charcoal, agricultural worldwide (Smith et al., 2000). Evidence links health but also reduce greenhouse gases at
residues, dung, etc.) is widely used as a exposure to biomass fuel combustion with the same time.
source of energy in developing countries. chronic obstructive lung disease, tuberculo- One of the easiest measures for reducing
Rough estimates indicate that worldwide sis, cataracts and adverse pregnancy out- indoor air pollution, widely used in some Asian
one-third of the population or about 2 bil- countries, is the installation of a chimney or a
lion people depend on these sources of hood over the stove. This will reduce indoor
air pollution but not air pollution in general,
FAO FORESTRY DEPARTMENT/CFU000279/R. FAIDUTTI
Agro-industrial waste
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Evidence for global climate change is accumulating, and today indefinitely. Often there are opportunities for synergy between
there is a growing consensus that the most important cause is bioenergy and wood production and management of forests as
humankind’s interference in the natural cycle of greenhouse carbon sinks, particularly on a regional scale. An example of
gases, especially carbon dioxide (CO2 ). Since the beginning of synergy is that found in integrated management for wood, carbon
the twentieth century the atmospheric concentration of sequestration and bioenergy, in which the stand is thinned to
greenhouse gases has increased from roughly 300 to 360 parts maximize the combined value of wood production and carbon
per million, and the two main causes have been identified as: sequestration, and where cleanings, precommercial fellings and
• burning of fossil fuels such as oil, coal and natural gas; logging residues are used for bioenergy.
• land use change, particularly deforestation. Fossil energy is usually consumed in producing bioenergy, for
Using more bioenergy can help reduce dependence on fossil instance during felling of trees in the forest or hauling of timber,
fuels and resulting emissions. In addition, plantation of trees and but research shows that usually the energy used is a small fraction
sustainably managed forests, including those managed for of the energy produced – roughly 25 to 50 units of bioenergy are
woodfuel, can help avoid or reverse deforestation and can offset produced for every 1 unit of fossil energy consumed in production.
carbon emissions by serving as carbon “sinks”. Net carbon emissions from generation of a unit of electricity from
Plants capture CO2 from the atmosphere and release oxygen bioenergy are 10 to 20 times lower than emissions from fossil
through photosynthesis. Some of the CO2 is lost through fuel-based electricity generation.
respiration, but a major part is sequestered in living and dead The approximate global potential for biological mitigation of
organic matter, for instance in wood, wood products and soils. climate change has been estimated as 100 gigatonnes of carbon
While burning fossil fuels releases CO2 that has been locked up by 2050, approximately 10 to 20 percent of total estimated fossil
for millions of years, burning biomass simply returns to the fuel emissions during that time. Roughly two-thirds of this carbon
atmosphere the CO2 that was absorbed as the plants grew. Under storage could occur in forests.
sustainable management, this CO 2 is again recaptured by the Ultimately, carbon stocks in vegetation will reach ecological or
growing forest, and there is no net release of CO2. practical saturation. This potential might be achieved at the same
If an area of non-forest land is converted to forest, additional time as greater bioenergy production is realized, with much of
CO2 will be removed from the atmosphere and stored in the tree the future bioenergy supply probably coming from some of the
biomass. The carbon stock on that land increases. However, the newly created forests or adapted agricultural systems. It is
newly created forest is a carbon sink only while the carbon stock estimated that bioenergy has the potential to reduce global CO 2
continues to increase. Eventually an upper limit is reached where emissions in the year 2050 by up to 25 percent of projected fossil
losses through respiration, death and disturbances from fire, fuel emissions, with a potential for further increases thereafter.
storms, pests, diseases or harvesting approximately equal the
carbon gain from photosynthesis.
Harvested wood from these forests is converted into wood
products, which also act as a sink until the decay and destruction
of old products matches the addition of new products. Since
harvest cannot be increased beyond a sustainable limit, the forest
and the products derived from it have a finite capacity to store
1
CO2 from the atmosphere; they act as a perpetual carbon store Adapted from: Matthews, R. & Robertson, K. 2001. Answers to ten
frequently asked questions about bioenergy, carbon sinks and their role in
only when managed sustainably, and otherwise release the global climate change, prepared by the International Energy Agency
carbon previously fixed. (IEA) Bioenergy Task 38, “Greenhouse Gas Balances of Biomass and
If biomass, including wood, is substituted for fossil fuels, Bioenergy Systems”. Graz, Austria, Joanneum Research. Available on
the Internet: www.joanneum.at/iea-bioenergy-task38/ publication/
however, land used for sustainable biomass and bioenergy task38faq.pdf. For further details please contact:
production can continue to provide emissions reductions [email protected] or [email protected].