Energy Poverty, Deforestation, and Environmental Impacts: The Role of Community‐Based Organizations and Urban Influence

ABSTRACT Energy poverty, deforestation, and environmental degradation are pressing challenges in rural areas, threatening both local livelihoods and forest ecosystems. Significant efforts have been made to address these issues, with community‐based organizations (CBOs) playing a crucial role in promoting forest conservation and sustainable energy practices. Yet not all communities have equal capacity to address energy poverty, influence conservation efforts, or shape sustainable environmental outcomes. In this study, we examine the intensity of wood energy usage, perceptions of fuelwood‐driven deforestation, and factors influencing the adoption of alternative energy and participation in forest conservation. Data was collected from 300 rural households in Dir Kohistan, and the analysis employed ordered logit and probit models. The results reveal a heavy dependence on fuelwood, with 89% of respondents relying on it as their primary energy source. Membership in CBOs such as Village Development Committees (VDCs) is associated with higher wood energy usage, but the presence of functional VDCs in a village reduces reliance on fuelwood. Urban influence, notably from urban residents within rural households, is a strong driver of increased wood energy consumption and deforestation concerns. Additionally, education, family size, and ethnic harmony emerge as significant factors in shaping both energy consumption behaviors and conservation participation. Functional VDCs significantly increase participation in forest conservation, while urban residents exhibit a negative impact on conservation efforts. The study highlights the need for integrated policies for sustainable energy transitions that account for local governance, urban–rural dynamics, and the socio‐economic factors driving energy use and conservation practices.