World Energy Outlook 2006

Analysis by the World Health Organization suggests that the societal benefits
of such expenditure outweigh the costs by a very wide margin. The figure for
the societal benefit/cost ratio of a global clean cooking initiative, as estimated
by the WHO (2006), is so high that the findings on the value of such an
initiative are robust under a wide range of alternative assumptions. The WHO
estimates that the total benefits of meeting this UN Millennium Project-based
target by 2015 through switching to LPG would average $91 billion per year
(Table 15.6).
Table 15.6: Benefits of Cleaner Cooking ($ billion per year)
Health-care savings
Time savings due to childhood and adult illnesses prevented:
school attendance days gained for children and productivity gains
0.38
for children and adults
Time savings due to less time spent on fuel collection and cooking:
1.46
productivity gains 43.98
Value of deaths averted among children and adults 38.73
Environmental benefits 6.07
Total benefits 90.62
Note: Societal economic benefits of providing LPG to half the population by 2015 who would otherwise be
using solid fuels for cooking in 2015.
Source: WHO (2006).
Policy Implications
Meeting the cooking-fuel target will require government action. On the supply
side, it can be difficult to establish a commercially viable LPG distribution
network in the face of low population density, poor roads, and low LPG uptake
and consumption among those who sign up for LPG. The absence of
economies of scale in catering to rural domestic consumers is one of the main
factors hindering LPG access. Infrequent delivery of refill cylinders serves as a
disincentive to switching to LPG. Demand-side barriers include low per-capita
incomes, lack of awareness of the benefits of alternative fuels, inappropriate
stove designs and simple force of habit. Moreover, even were LPG widely
available, many poor households would not be able to afford the required
capital investments. The start-up cost of buying a stove and paying a deposit
for a fuel canister represents a serious barrier for many households.
440 World Energy Outlook 2006 - FOCUS ON KEY TOPICS