ENERGY FOR A SUSTAINABLE WORLD - World Resources Institute

more difficult to implement in developing
countries. One reason for this judgment is that
not all policy instruments that can be used in
industrialized countries are practical for the
developing country situation. For example, the
rebate programs used by some U.S. utilities to
promote energy-efficient appliances in households
would not work where there are no
effective mechanisms for delivering rebates to
the poor.
In addition, price-reform efforts in developing
countries must be accompanied by compensating
efforts to ease the burden of higher
energy prices on the poor. For example, in
countries where the kerosene price is kept low
to protect the poor, the prices of kerosene and
diesel fuels should be increased only in conjunction
with programs that give the poor
alternatives to kerosene for lighting (for example,
rural electrification) and cooking (say, biogas
or producer gas).
Developing countries also face special policy
issues in introducing new energy-efficient
technologies. If these technologies must be imported,
the country must decide whether to
spend precious foreign exchange on them. A
proper evaluation of the foreign exchange
issue, however, should cover the entire energy
system—improved end-use technology and
energy-supply technology—because the increase
in foreign exchange for a more efficient
device is often more than offset by a reduction
in foreign exchange requirements for new
energy supplies.
Ultimately, of course, the domestic manufacture
of energy-efficient technology would be
desirable in many countries, and the investment
and infrastructure requirements for
building that capability must be understood.
Some countries are already developing such
capabilities. In India, for example, typical fivepassenger
cars in use get 21 to 24 mpg (10 to
11 lhk), but typical new domestically manufactured
cars have fuel economies of about 40
mpg (6 lhk). There is strong evidence that
Brazilian manufacturers could produce energyefficient
refrigerators, lighting systems, heat
pumps, motors, and motor control devices in
just a few years, if there were sufficient demand
for such products. 61
These examples, of course, are not surprising
in view of the fact that exotic technologies are
typically not required to improve energy-using
devices dramatically. The key to introducing
such new products is convincing manufacturers
that there would be adequate markets. Thus,
utility and government programs to promote
the development of such markets through procurement,
loan programs, and the like are
especially important.
Planners in developing countries face a new
set of challenges in implementing "technological
leapfrogging" strategies. Developing countries
should not be content to adopt energyproducing
and energy-using technologies from
the industrialized countries, which often will
not be matched to local human and natural
resources or be compatible with economic expansion
in the new era of higher world energy
prices. Instead, developing countries should
continually be seeking new technological opportunities
that could lead to improved productivity,
consistent with available resources, environmental
goals, and security concerns.
Adopting such new technologies before they
are proven in the industrialized countries entails
greater technological risk-taking than most
developing countries are accustomed to.
Although any action should be preceeded by a
careful evaluation of the potential benefits, prudent
risk-taking can enhance long-term
development prospects.
Energy and Basic Human Needs. As pointed
out here, the structure of the energy demandand-supply
system depends on the approach
taken to alleviating poverty, and an especially
promising approach is to allocate energy and
other resources directly to meeting basic
human needs for nutrition, shelter, sanitation,
clothing, health, and education.
The energy policy implications of the basic
99