Factors Determining Demand, Supply and Price Changes in the Bujumbura Charcoal Market. Modeling of Possible Changes in the Long-Term Horizon

International Journal of Research and Innovation in Social Science (IJRISS) | Volume III, Issue VII, July 2019 | ISSN 2454–6186

Factors Determining Demand, Supply and Price Changes in the Bujumbura Charcoal Market

Modeling of Possible Changes in the Long-Term Horizon

Jean Baptiste Aboyitungiye

Economics Program and Development Studies, Universitas Sebelas Maret, Indonesia

Abstract:-The article presents the challenges faced by the trading and consumption of charcoal in Bujumbura city. The biggest challenge results from an increase in its price, which was triggered mainly by government politics, including the environmental condition standards and decrease in the efficiency of generating its production. The establishment of an autonomous and non-governmental structure or a Charcoal Marketing Company in charge of all activities of the energy sector based on the woodhave been proposed. This allows for determining the marginal price of a given product for a given generating unit in the system and the optimal production of charcoal to meet its demand. Disturbances in the charcoal market (oversupply or shortage situations) are reflected in the energy sector, for which the price and the main cost factors of charcoal should be on the head of this company. It is assumed that all charcoal activities must be preceded by the regulation works. In other words, investment expenditures in the charcoal sector have a high meaning and benefit to consumers. It has been shown that the distribution of charcoal capacities is not enough because of its transportation which meets different problems. Based on the presented arguments it can be concluded that a system of regulation that takes care of all the activities related to the production, transport, marketing of charcoal is the only one that will fight against this upheaval of prices at any time.

Key Words: Charcoal, charcoal market, commerce, energy, coal price

I. INTRODUCTION

People need access to energy in order to escape from poverty. Although the Millennium Development Goals did not include specific targets on energy, the debates that are currently leading to the designof a post-2015 development agenda all include discussions of specific targets on energy access (Dobie & Sharma 2005).Many studies have been conducted on the use of wood energy in developing countries (Ferari, 1990; ESMAP, 1991; Bationo, 1993; Ouédraogo, 2006; Couture et al. 2008; Gazull, 2009; Meyers et al. 2009; Trefon et al., 2010).

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