Could more efficient use of energy have an impact on poverty alleviation? What changes in energy use patterns are likely to generate the greatest benefits for the poor? What are the constraints on the uptake of energy efficiency measures? Can they be overcome?

A report by the National Resources Institute, University of Greenwich, reviews evidence of the links between energy use, environment and urban poverty. Data on industrial and residential energy use patterns in Africa and Asia are complemented by a case study on the use of energy in Calcutta and New Delhi.

In recent years the majority of poor urban households in India have switched from biomass to state-subsidised kerosene – widely regarded as ‘a poor man's fuel’. This step up the energy ladder has moved cooking indoors, into poorly ventilated rooms. Pollution is caused by incomplete combustion of the fuel. Health education programmes are needed to alert householders, particularly women, children and older people, to the risks.

India’s huge number of energy-intensive small industrial enterprises (such as glass, plastic, ceramics, bakery and steel re-rolling units) cause massive pollution. The sector is resource poor in terms of financial strength and technical expertise. Environmental gains could benefit the large number of insecure low-income employees and the millions of people in nearby low-income housing. The author warns, however, that focusing only on combustion-related pollution would not produce discernible environmental benefits. What is required is an energy-led initiative to tackle issues of poor use of resources, process inefficiencies, poor housekeeping and lack of waste management.

In both domestic and industrial sectors, the link between enhanced energy efficiency and poverty alleviation is through improved environment, in which the poor live and work.

The study also notes that:

• fuel saving is not a priority with the poor, though they are aware of the dangers of using kerosene
• cultural preferences sometimes encourage continued use of wood for cooking: in overcrowded urban areas it is usually lack of space for constructing 'chulhas' (traditional stoves) that prevents the use of wood
• improved storage can reduce the moisture content of fuelwood and lead to substantial fuel savings
• fuelwood is likely to continue to be used by large numbers of people in towns and peri-urban areas
• India’s programme to promote improved chulhas has had limited success and has not been targetted at city-dwellers
• most city residents cannot invest in, otherwise affordable and safe, liquid petroleum gas (LPG) due to high start-up costs.

Demand management remains a neglected policy area in India and elsewhere in the developing world. Urban domestic fuel use and the energy needs of India’s urban poor are largely ignored. Policy-makers show little interest in developing a national demand management strategy to rationalise and plan fuel use.

The study recommends that policy-makers:

• investigate the impact of reducing the current 50 per cent subsidy on kerosene
• promote low-cost kerosene stoves using modern materials which will ensure better combustion
• win public acceptance of the need to improve wood-burning chulhas by focusing on improved health outcomes rather than the potential energy/cost savings
• take a participatory and steady approach to working with small industries on environmental improvements to demonstrate that measures which improve efficiency can increase returns
• establish an institutional framework to bring together the agencies, departments and parastatals involved with environmental improvements in small-scale industries.

Source(s):
‘Energy efficiency and poverty alleviation’ by N. Dasgupta, Natural Resources Institute, University of Greenwich, 1998 Full document.

Funded by: DFID (IUDD)

id21 Research Highlight: 4 October, 2002

Further Information:
Nandini Dasgupta
Natural Resources Institute
University of Greenwich at Medway
Central Avenue
Chatham Maritime
Kent, ME4 4TB
UK

Tel: +44 (0) 1634 880 088
Fax: +44 (0) 1634 880 066/77
Contact the contributor: n.dasgupta@greenwich.ac.uk

Natural Resources Institute, University of Greenwich, UK

Other related links:
'A burning issue: promoting sustainable pro-poor access to affordable energy'

'Is cooking a waste of energy? Promoting more efficient household stoves '

'Measuring the haze: quantifying environmental and health impacts of urban energy use'

Visit DFID's Improved Household Stoves and Poverty Reduction project website

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