The article briefly presents the energy situation in Tanzania, discusses the relationship between structural adjustment programmes and emerge use problems. It looks at the objectives of these SAP programmes to see the effects on the energy sector and how these, in turn, affect the environment. In the article, a number of observations are made including the following ones: the pattern of electricity tariff revisions which have been affected by TANESCO, have created a structure which may be environmentally devastating by encouraging the consumers to use more fuelwood and charcoal for their energy needs; from the official aggregate data for urban fuelwood and charcoal consumption, the own price responsiveness for fuelwood demand, was found to have been negative and inelastic; a substitution relationship was found to have existed between kerosene and fuelwood; as income rises urban consumers use less fuelwood and conversely, if urban dweller's income falls relative to rising prices or increased unemployment, more people will turn to the use of fuelwood and charcoal for (heir everyday energy needs; the urban population coefficient for fuelwood, indicates that an increase in the urban population coefficient for fuelwood, indicates that an increase in the urban population puts pressure on woodfuel demand through consuming more woodfuel; the positive relationship between electricity price and charcoal demand, means that a substitution relationship existed between the two energy sources for the period of analysis (1977-1995) and finally examples drawn from Lushoto and Nzihi provide empirical evidence that factors such as cost of fuel availability and ease of access to fuelwood do influence choice of fuel source by most consumers.
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