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Prospects for Coal Briquettes as a Substitute Fuel for Wood and ...

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17<br />

coal briquettes could be subsi dized w 4th the by-product i ncme <strong>and</strong><br />

brought to a yet lower level.<br />

Favorable economics <strong>for</strong> coal briquettes a1 so appear 1 ikely <strong>for</strong> two urban<br />

are<strong>as</strong> in Peru, namely Lima <strong>and</strong> Puancayo. brewer, this country<br />

provides an example where heavily subsidized kerosene might be displaced<br />

by smokeless coal briquettes. As smmarized in Table 3, the UNDP/World<br />

Bank estimate that coal briquettes a:; a cooking fuel would cost US$ 9.30<br />

- 13.30 per capita per year.C1812/ By comparison, fuelwood used in an<br />

open fire costs US$ 10.80 - 15.00 per capita per year in Wuancayo <strong>and</strong><br />

US$ 27.58 - 31.70 in Lima. Although the cost of a stove is not included<br />

in these estimates, the coal briquettes appear economically competitlve<br />

with fuelwood on an operating cost b<strong>as</strong>is. With respect to kerosene,<br />

Table 3 indicates that it is cheaper than coal briquettesl but only<br />

because of a large subsidy. If the subsidy on kerosene were 7 ifted,<br />

coal briquettes could displace It <strong>as</strong> a cooking fuel, at le<strong>as</strong>t on a costof-fuel<br />

b<strong>as</strong>is. Since kerosene is subsidized in other countries <strong>as</strong> well,<br />

this conclusion might be general.<br />

Table 3. Cooking fuel costs in Peru<br />

(US$ per capita per year)<br />

FUR- H U ANCA YO<br />

L LMA<br />

<strong>Wood</strong><br />

used in open fire<br />

use in improved stove<br />

10.80 - 15.00 27.50 - 31.70<br />

5.40 - 11.20 13.80 - 23.70<br />

C h a rcoal 33.90 5 8.50<br />

<strong>Coal</strong> <strong>Briquettes</strong> 9.30 - 13.30 9.30 - 13.30<br />

Kerosene<br />

w ith current subsidy<br />

unsubsi dized<br />

7.70<br />

21 .oo<br />

7.70<br />

18.50<br />

Source:<br />

UNDP/Worl d Bank C181<br />

- 2/ This translates into US$ 139 - 1!39 per TOE. Costs of other cooking<br />

fuel s are not trans? ated into dol'lars per TOE because the method used<br />

by the UNDP/World Bank to estimate their costs per capita per year<br />

involved different uti1 ization eff Iciencies <strong>for</strong> the different fuels.<br />

Giving a cost per TOE <strong>for</strong> all fuels would be misleading.

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