Bio-Based Energy, Rural Livelihoods and. Energy Security in Ethiopia. Dawit Diriba Guta
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1 Bio-Based Energy, Rural Livelihoods and Energy Security in Ethiopia Dawit Diriba Guta PL AC AD E M IC RESEARCH
2 Table of Contents List of Tables List of Boxes List of Figures Acknowledgments Abbreviations XV XIX XXI XXIII XXVII Chapter One Introduction Background Energy and sustainable development Biomass energy use and related challenges in developing countries Background and the energy Situation in Ethiopia Fuelwood scarcity, household energy use, and related welfare effects The nexus of water, energy, and food The bioeconomy concept Research problem Research objectives, questions and hypothesis Conceptual and theoretical background Organization of the study 17 Chapter Two Household bio-based energy utilization and energy mix behaviour, and related linkages with food security and welfare effects Introduction Study site characteristics 20 IX
3 2.3. Agricultural Household Model, bio-based energy production and utilization, drivers and welfare effects Conceptual framework Relationships between poverty, rural household energy use, and environmental degradation in developing countries Determinants of household bio-based energy use in developing countries Theoretical framework of the Agricultural Household Model Empirical econometric strategy Description of the data and sampling technique Descriptive statistics Regression results and discussion Probit model of household livelihood activity choices Fuelwood scarcity, cross-wage effects, and their welfare implications Household labour allocation by activities Household joint labour allocation to livelihood activities Household joint labour share allocation to livelihood activities Cross-wage effects and other determinants of household labour allocation and related empirical underpinnings Effects of fuelwood scarcity on household energy and food expenditures, and related energy mix and welfare implications Fuelwood scarcity and household food and energy expenditures Fuelwood scarcity, energy purchase choice, and related determinants Discussion of the welfare implications Household bio-based energy utilization and welfare effects of fuelwood scarcity Conclusion and recommendations 93 X
4 Chapter Three Energy sector model for assessing Ethiopia's future energy security, uncertainties, and renewable energy resource options Introduction Energy security indicators and measurability Overview of Ethiopia's energy sector: energy resource potential and consumption Ethiopia's energy resource diversity, energy mix, and energy security Power production sources Energy consumption Electricity consumption Biomass energy consumption trends Energy consumption by sectors Ethiopia's energy system: framework of existing energy use and prospective contributions of renewables to future energy security Bioenergy demand and prospective development applications Types of modern bio-based energy and their prospects for application in Ethiopia Sustainability dimensions of bio-based energy Political aspects Economic aspects Social aspects Environmental impact Role of technological Innovation and efficiency Review of the energy sector model Top-down energy models Bottom-up energy models Hybrid energy models Model choice and description Data and parameters used in the Ethiopia energy sector model Description of alternative scenarios Model Validation 146 XI
5 3.14. Model results and discussion Electricity demand protection Shadow price of peak electricity demand Electricity production composition in the baseline model Implications of technological and efficiency innovations on energy security Effects of technological and efficiency innovations on Ethiopias electricity production mix Effects of technological and efficiency innovations on energy production cost Effects of technological and efficiency innovations on shadow prices of energy resources Energy security implications of climate change or drought Effects of drought on Ethiopias electricity production mix Effects of drought on energy production costs Energy source competitiveness: the Levelized cost of energy Capital subsidies for alternative renewable energy technology development Sensitivity analysis for fuel-switching effects on power capacity expansion Discussion of the limitations of the model and policy implications Conclusion and policy recommendations 166 Chapter Four Institutional arrangements, collective actions, and national strategy options for decentralised clean energy generation and use in remote communities of Ethiopia Introduction Energy access in rural Ethiopia Technological and institutional issues Decentralized renewable energy technologies Institutions and collective action theories Bottlenecks and barriers to rural renewable energy use 177 XII
6 4.5. Strategie; and institutional arrangements for decentralized modern biomass energy use, participatory forest management, and climate change mitigation Evolution of participatory forest management, energy, and climate change policies Critical challenges and opportunities: climate change mitigation, agriculture, and biomass energy Lessons from case studies on participatory forest management Lessons for decentralized renewable energy investment Insights from focus group discussions Lessons from institutional biogas experiences Supply and demand of decentralized bio-based energy and other renewable energy sources Biomass supply Energy end users or consumers Legal framework, institutions, and the role of government Conclusion and recommendations 202 Chapter Five Summary, conclusion and policy recommendations Summary and conclusion Future research needs 207 References 209 Appendices 237 Annex 3.1. Technical annex of model constraints 243 XIII
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