Problems of Poverty. Less Energy, Low Efficiency, Polluted Environment. Barun Mitra, Liberty Institute Brussels, 24 November 2004

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1 Problems of Poverty Less Energy, Low Efficiency, Polluted Environment Barun Mitra, Liberty Institute Brussels, 24 November 2004

2 India on the Energy Map Commercial energy production and per capita, 1999 Country USA China Bangladesh India Commercial Energy Production (thousand metric tonnes of oil equivalent ) 1,687,886 1,056,963 14, ,788 Commercial energy use per capita (kg of oil equivalent) Liberty Institute, New Delhi 2

3 Energy in India Sl. No. Source of Energy Commercial energy production Net imports Total commercial energy supply (1+3) Primary noncommercial energy supply Total primary energy supply (3+4) Unit: million tonnes of oil equivalent (MTOE) Liberty Institute, New Delhi 3

4 Problems of Poverty Low energy consumption Low energy efficiency Higher energy dependence High energy intensity Higher environmental stress Dirty environment Higher Impact on health Lower adaptability Greater vulnerability to natural calamity Liberty Institute, New Delhi 4

5 Indoor air pollution Rural Kitchen Electricity, 0.18% Others, 9.66% LPG, 17.50% Traditional Fuel, 72.33% Liberty Institute, New Delhi 5

6 Lighting Indian Homes Others, 0.85% Kerosene, 43.30% Electricity, 55.85% Liberty Institute, New Delhi 6

7 Indoor air pollution the toll Causes Acute respiratory infections-age less than 5 years, Chronic obstructive pulmonary disease. Blindness-women (not death) and prenatal effects Tuberculosis on women No. of deaths Cardiovascular disease-women asthma Grand total: * *Total annual deaths in India for women and children under 5 in these disease categories in the early 1990s. Liberty Institute, New Delhi 7

8 Fuel Index 90% of households in small villages rely on fuels like firewood, animal dung and crop residue 88% of rural women population used these fuels for their daily cooking. Fuel type Dung Saw dust Crop residue Fuel wood Coal Charcoal Kerosene Liquid Petroleum Gas Biogas Electricity Weight The more convenient, efficient and cleaner the fuel, less is its weight. Since animal dung lies at lowest end, the other fuels are weighed with respect to dung. (Parekh, et al, 2003) Liberty Institute, New Delhi 8

9 Restricted economy, Greater vulnerability Taxes and Tariffs reduce consumption and competitiveness and efficiency Poor are most vulnerability to natural calamity Lighting Bulbs to CFLs taxes, tariff, procurement policy Automobile 180% import duty, 50% taxes, Fuel 30-40% taxes on petroleum product Refrigerator CFC and frost free, energy efficient, but Floods annually 1000s die in South Asia, in Florida toll ranges in 10s Liberty Institute, New Delhi 9

10 Income, Energy and Efficiency Share of World Income High income group countries 80% Low income group countries 3% Middle income group countries 17% Share of commerial energy High income group countries 51% Low income group countries 13% Middle income group countries 36% Liberty Institute, New Delhi 10

11 Kenya India China Thailand Malaysia World Mexico Declining significance of Energy Liberty Institute, New Delhi 11 Canada Netherland Germany United Kingdom Denmark USA Japan Value of energy as % of GDP,1980 Value of energy as % of GDP,1998

12 Poverty Kills Today Debate on global warming, shifts focus from problems of today to day after tomorrow Concerns about sea level rise in future, but thousands die each year due to floods today Millions die today from preventable diseases of poverty, but focus is on diseases of the future Liberty Institute, New Delhi 12

13 Price of Oil 1861 to Liberty Institute, New Delhi Current US Dollar Constant US Dollar 2002 $ 2002 $ money of the day

14 US Energy Intensity Year Liberty Institute, New Delhi GDP in 10 billion USD (2000) Energy in 100 BTU per USD (2000) Gross Domestic Product (GDP) Petroleum and Natural Gas Consumption per Dollar of GDP Other Energy Consumption per Dollar of GDP Energy Consumption per Dollar of GDP

15 Energy Abundance Higher energy consumption Higher energy efficiency Lower dependence on energy resources Lower energy intensity Lower environmental stress Cleaner environment Lower impact on health Higher adaptability Lower vulnerability to natural calamity Liberty Institute, New Delhi 15

16 Conservation through Consumption Development is the Key that unlocks the potential of increased consumption Economic freedom creates the competitive environment for harnessing human creativity leading to efficiency gains Liberty Institute, New Delhi 16