Some simple economics of improved cookstove programs in developing countries

Conference · Fri Jul 01 04:00:00 EDT 1988

OSTI ID:6365535

Jones, D W

More efficient cookstoves have been introduced in developing countries by development agencies to retard deforestation and to improve the welfare of low-income consumers. To date, studies of the economics of cookstove programs have been limited to financial analyses of stove costs and an input-output study of a single country. This paper examines the consequences of the implicit income effect of a 25% to 50% improvement in fuel efficiency of household cookstoves. A model is constructed to examine the spending pattern of resources saved from reduced fuel expenditures and the consequences of fuel price reductions caused by reductions in aggregate demand. It is found that, with parameter values typical of low-income developing countries, roughly 50% of technical fuel savings from stove efficiency improvements are lost through increased fuel use induced by income and price effects. Even when the income elasticity of demand for the fuel is zero, an own-price elasticity of one-half, with a unitary supply elasticity, 28% of the initial technical savings will be lost through increased consumption. 22 refs., 6 tabs.

• Research Organization: Oak Ridge National Lab., TN (USA)
• DOE Contract Number: AC05-84OR21400
• OSTI ID: 6365535
• Report Number(s): CONF-890342-1; ON: DE89002979
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
291000 -- Energy Planning & Policy-- Conservation
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320601* -- Energy Conservation
Consumption
& Utilization-- Municipalities & Community Systems-- Conservation Services-- (1980-)
APPLIANCES
DATA
DEFORESTATION
DEVELOPING COUNTRIES
ECONOMICS
EFFICIENCY
ENVIRONMENTAL EFFECTS
EQUATIONS
FUEL SUBSTITUTION
INFORMATION
NUMERICAL DATA
STOVES
WOOD BURNING APPLIANCES