December, 11 12, 2017 Institute of Energy and Environment University of São Paulo

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1 December, 11 12, 2017 Institute of Energy and Environment University of São Paulo FIREWOOD CONSUMPTION AND CARBON EMISSIONS IN BRAZILIAN REGIONS Suani Teixeira Coelho, Fabio Rubens Soares, Luis Gustavo Tudeschini, & Alessandro Sanches Pereira

2 55% Source: Sanches-Pereira et al. (2016).

3 A deeper look TWh Snapshot Final energy consump on for cooking Final energy consump on for electric apliances Source: Sanches-Pereira et al. (2016). Source: Prepared by the authors based on data from MME ( )

4 Snapshot TWh D1 D2 D3 D4 D5 D6 D7 D8 D9 D10 Final energy consump on for cooking Final energy consump on for electrical appliances Source: Prepared by the authors based on data from MME ( ) and IBGE (2015)

5 Checking the consumption TWh D1 D2 D3 D4 D5 D6 D7 D8 D9 D10 Gasworks Fuel wood LPG Charcoal Kerosene Electricity Source: Sanches-Pereira et al. (2016). Source: Prepared by the authors based on data from MME ( ) and IBGE (2015)

6 Source: Sanches-Pereira et al. (2016).

7 Source: Sanches-Pereira et al. (2016).

8 Almost 38% of the world s population rely on traditional biomass for cooking and heating in 2015 In Brazil, there are almost 10 million people relying on traditional use of fuelwood for cooking in 2015, which corresponds to about 5% of the country s population Source: REN21. Renewables 2016 Global Status Report. Paris: 2016 IEA. Energy access database. World Energy Outlook 2016

9 Consumption factor The share of household budget, which is allocated to a particular form of fuel or energy source, depends on a number of factors: income, availability, price of fuel and possible substitutes Source: Bacon et al. (2010).

10 Income D10 D9 D8 D7 Share of households D6 D5 D4 D3 D2 D1 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Midwest North Northeast South Southeast Source: Sanches-Pereira et al. (2016).

11 Source: Sanches-Pereira et al. (2016). There is a direct relation between fuelwood consumption for cooking and regions with low HDI and high inequality.

12 Source: Sanches-Pereira et al. (2016). The poorest 10% of Brazilians households consumed about 24% of all fuelwood in 2015 and the richest 10% only 0.3% (rather cultural preferences than energy poverty).

13 Availability Access to modern cooking fuel such as LPG plays a crucial role in replacing fuelwood. Residential consumers use a 13 kg canister of LPG, mainly for cooking. Currently, there are 5,570 municipalities in Brazil, from which only 227 (e.g. less the one percent) of them have no local distributor of LPG

14 Availability is not an issue in Brazil Region Number of Municipalities Share in the region Per capita energy demand for cooking Share of cooking fuel demand covered by fuelwood Southeast % 208 kj 45 % South % 222 kj 42 % Northeast % 262 kj 57 % North % 209 kj 54 % Midwest % 231 kj 47 %

15 Price It s cheaper to burn money than buying LPG nowadays!

16 In 2016, the price of one 13kg canister of LPG represented 6% of the minimum wage USD Share of minimum wage required to cover other expenses $60.94 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Share of minimum wage required to buy LPG $12.98 $14.82 $18.27 $18.80 $17.79 $17.15 $17.75 $17.57 $16.70 $17.29 $17.58 $16.56 $16.01 $15.78 $15.58 $15.56 $16.34 Minimum wage $73.92 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $270.77

17 No direct intervention Governmental incentives for LPG uses Market Price LPG voucher (Auxílio Gás) Incorporation of the LPG voucher into the Family Allowance (Bolsa Família) Governmental subsidies to all citizens

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19 tco2eq/tj Fuelwood LPG 60% GHG emission reduction tco 2 eq

20 Thanks! Acknowledgments FAPESP Project 2012/ Authors thank Prof. José Goldemberg for fruitful discussions

21 Concluding remarks In Brazil, the transition from fuelwood for cooking to modern fuels such as LPG follows a consistent pattern. Systematic increases in the minimum wage aligned with governmental policies on fuel and poverty alleviation were the main drivers for replacing fuelwood with LPG, which ratifies affordability as a key parameter to understand cooking fuel consumption in Brazil. The Brazilian replacement of fuelwood for LPG becomes strongly related to affordability after Since them, the country follows this consistent pattern and has reduced 66 percent of its fuelwood consumption. Since affordability as a key parameter, current socioeconomic scenario is pushing back the use of fuelwood in Brazil.