India : Access of the Poor to Clean Household Fuels

There is a strong case for phasing out price subsidies for liquefied petroleum gas (LPG) and kerosene. This study was motivated by the primary objective of facilitating access to clean fuels, given the significant health and social benefits of switching away from traditional biomass. Price subsidies have been found to be ineffective in expanding the uptake of LPG and kerosene as primary household fuels among the poor, and have proven fiscally unsustainable. Even given this social objective, phasing out the price subsidies for LPG and kerosene, and fostering a vibrant, open, and competitive market for these fuels would appear to be a better approach. The conclusions of this study lend strong support to the announcement by the Ministry of Finance in June 2003, that the LPG and kerosene subsidies will be phased down in three years, and eliminated by April 2006. There are significant opportunities to facilitate a shift away from traditional biomass, to clean fuels in urban and peri-urban areas, including among the poor; however, rural households are more difficult to deal with, and require a concerted multi-sectoral approach, but, raising public awareness about the health costs of traditional energy, would facilitate the uptake of clean fuels.

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Bibliographic Details
Main Author: World Bank
Format: ESMAP Paper biblioteca
Language:English
en_US
Published: Washington, DC 2003-07
Subjects:AIR POLLUTION, ALTERNATIVE USES, APPLIANCES, AUTOMOTIVE DIESEL, BIOGAS, BIOMASS, BIOMASS FUEL, BIOMASS FUEL USE, BIOMASS FUELS, BIOMASS STOVES, BIOMASS USE, CANCER, CARBON, CARBON MONOXIDE, CHRONIC BRONCHITIS, CLEAN TECHNOLOGIES, CLEANER ENERGY, CLEANER ENERGY TECHNOLOGIES, CLEANER FUELS, COAL, COMBUSTION, COMMERCIAL ENERGY, COMMERCIAL FUELS, CONSUMER EDUCATION, CONSUMER PROTECTION, CONVENTIONAL ENERGY, COOKING, COOKING FUELS, DEFORESTATION, DOMESTIC USE, ECONOMIC GROWTH, ELECTRICITY, EMISSIONS, END-USER PRICES, ENERGY CONSUMPTION, ENERGY MIX, ENERGY NEEDS, ENERGY OPTIONS, ENERGY SECTOR, ENERGY SECTOR MANAGEMENT ASSISTANCE, ENERGY SOURCES, ENERGY TECHNOLOGIES, ENERGY USE, FIREWOOD, FIREWOOD CONSUMPTION, FUEL, FUEL COLLECTION, FUEL CONSUMPTION, FUEL PRICE, FUEL PRICES, FUEL SWITCHING, FUEL TYPE, FUEL USE, FUELS, FUELWOOD, GAS NETWORKS, GAS PIPELINES, GAS TARIFF, GASEOUS FUELS, HOUSEHOLD CONSUMPTION, HOUSEHOLD ENERGY, HOUSEHOLD ENERGY CONSUMPTION, HOUSEHOLD ENERGY NEEDS, HOUSEHOLD ENERGY TECHNOLOGIES, HOUSEHOLD ENERGY USE, HOUSEHOLD FUEL, HOUSEHOLD FUELS, INCOME, KEROSENE, LIGHTING, LIQUEFIED PETROLEUM GAS, LOW-INCOME HOUSEHOLDS, LPG, NATURAL GAS, OIL, OIL COMPANIES, OIL PRICES, PARTICULATE AIR POLLUTION, PARTICULATE MATTER, PETROLEUM, PETROLEUM FUELS, PETROLEUM GAS, PETROLEUM MARKET, PETROLEUM PRODUCTS, PETROLEUM SECTOR, RURAL AREAS, RURAL ELECTRIFICATION, RURAL HOUSEHOLDS, RURAL INFRASTRUCTURE, SMOKE, SOLID FUELS, SOLUTIONS, SUSTAINABLE, SUSTAINABLE USE, TRADITIONAL BIOMASS, TRADITIONAL STOVES, URBAN HOUSEHOLDS, USE OF BIOMASS, WASTE,
Online Access:http://documents.worldbank.org/curated/en/2003/07/2778898/india-access-poor-clean-household-fuels
http://hdl.handle.net/10986/19645
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Summary:There is a strong case for phasing out price subsidies for liquefied petroleum gas (LPG) and kerosene. This study was motivated by the primary objective of facilitating access to clean fuels, given the significant health and social benefits of switching away from traditional biomass. Price subsidies have been found to be ineffective in expanding the uptake of LPG and kerosene as primary household fuels among the poor, and have proven fiscally unsustainable. Even given this social objective, phasing out the price subsidies for LPG and kerosene, and fostering a vibrant, open, and competitive market for these fuels would appear to be a better approach. The conclusions of this study lend strong support to the announcement by the Ministry of Finance in June 2003, that the LPG and kerosene subsidies will be phased down in three years, and eliminated by April 2006. There are significant opportunities to facilitate a shift away from traditional biomass, to clean fuels in urban and peri-urban areas, including among the poor; however, rural households are more difficult to deal with, and require a concerted multi-sectoral approach, but, raising public awareness about the health costs of traditional energy, would facilitate the uptake of clean fuels.