The paper examines the energy supply demandin highland rural Erhiopia- the case' ofrnAmhara Region. We develop a non-separable household model to analyze the link betweenrnforest scarcity and household energy consumption, Focusing on the substitution of fuels fromrnthe forests and commons and the private domain.rnthe model is estimated by two stage least squares using recently collected data from 12rnrural Kebeles of East Gojam and south Wollo in the Amhara region. To check and correctrn(when necessary) for sample selection bias due to unobsevabiltiy of the amount of Fuelrncollected for non-collecting household, Heckit model was used.rnfuel collections in the study area significantly respond to fuelwood collection time, Householdrnendowment profiles, And household demographic characteristics. The results showed thatrnhouseholds are responsive to fuelwood scarcity. The relative scarcity of private energy in thernmodel was captured by the effect of Non-Price variables including number of trees growing onrnown field, Animal Stock, And farm size on this fuel type. Households that are better off inrnowning large farmland size, Large Number of trees, And cattlie have an advantage to collectrnmore Fuel From Private domain.rnthe cross price elasticities of the above variables showed that fuelwood from commons andrnthe alternative domestic fuel (i.e. private energy) are gross substitutes. Many of the impliedrnelasticities were, however, low. Thus, policy interventions appear necessary to reduce forestrndegradation.