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Lecture 24

ECON366 Lecture 24: Energy Poverty and The Energy Ladder in Developing Countries

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University of Alberta
Dana Andersen

ECON 366 Lecture 24 Energy Poverty and The Energy Ladder in Developing Countries Energy Ladder What is energy ladder? Transition from traditional to modern energy sources , firewood to natural gas Traditional is inconvenient to collect and store and require constant management in use, and emit a large amount of smoke Modern is convenient Household energy use decisions Based on unique circumstances Energy ladder Traditionallow income energy use Cooking, heating, lighting (biomass, batteries) Fuelenergy servicesmedium income Basic use + refrigeration, transport and water pump (oil, diesel) Modern advancedhigh income Basic + energy services + ICT, cooling, electronic appliances (electricity) Drivers of energy transition Household income: positively related to energy use Urbanization: firewood and traditional fuel more scarce Smoke emissions and exposures: traditional use emits noxious fumes; air pollution problems; greater awareness and income will increase demand for clean air and better health Appliance costs: costs for traditional fuels near zero Relative fuel costs: 1. costs of traditional fuels primary time; unequal consumer bargaining power 2. women typically collect firewood and exposed to cooking smoke, and men control money to purchase modern fuels 3. governments often subsidize electricity prices to encourage modern fuels 4. several studies those policies are not cost effective beneficial to the poor, increasing the stumpage fees Fuel availability 1. traditional sources are determined b many factors: as forest cover, landuse system 2. policymakers support planting trees to ensure cooking fuel
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