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A major development concern of the 1970s and 1980s was 'the other energy' or 'woodfuel crisis'. Woodfuel use in developing regions of Africa, Asia, and Latin America was believed to be a key factor in tropical deforestation, and the loss of forests was projected to result in widespread woodfuel shortages. In recent years, however, it has become apparent that woodfuel production is seldom a direct cause of deforestation (although it may be a by-product), and that most woodfuel demand is met by trees and shrubs growing outside of forest areas. In addition, earlier predictions of serious woodfuel shortages have not materialized. But in some regions, including the Philippines, woodfuel use is still regularly pointed to as a primary cause of deforestation, and woodfuel shortages are still predicted for the immediate future. In particular, commercial woodfuel demand for household and commercial use is said to be contributing to over-exploitation of forest resources. This paper examines the connections between commercial woodfuel demand and deforestation on the Island of Cebu in the central Philippines. Cebu is widely perceived as an environmental disaster area on the brink of ecological collapse, and tree cutting for woodfuel production is often blamed for contributing to this condition. In contrast, this paper will argue that environmental conditions on Cebu are improving, that tree planting and management is widespread among smallholder farmers and other landowners, and that commercial demand for woodfuel and other wood products is one of the main factors driving increased reforestation on the island. Copyright © 2008 John Wiley & Sons, Ltd.