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Problems of Poverty

Less Energy, Low Efficiency, Polluted Environment


Barun Mitra,
Liberty Institute www.libertyindia.org

Brussels, 24 November 2004

India on the Energy Map


Commercial energy production and per capita, 1999
Country Commercial Energy Production (thousand metric tonnes of oil equivalent ) 1,687,886 1,056,963 14,474 409,788 Commercial energy use per capita (kg of oil equivalent) 8159 868 139 482

USA China Bangladesh India

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Energy in India
Sl. No. 1.

Source of Energy Commercial energy production Net imports Total commercial energy supply (1+3) Primary noncommercial energy supply

1970-71 47.67 12.66 60.33 86.72

1980-81 75.19 24.63 99.82 108.48

1990-91 151.43 31.69 183.12 122.07

2001-02 210.83 87.85 298.67 139.02

2. 3.

4.

5.

Total primary energy 147.05 supply (3+4)


Unit: million tonnes of oil equivalent (MTOE)

208.30

305.19

437.69

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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
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Indoor air pollution


Rural Kitchen
Electricity, 0.18% Others, 9.66%

LPG, 17.50%

Traditional Fuel, 72.33%

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Lighting Indian Homes


Others, 0.85%

Kerosene, 43.30% Electricity, 55.85%

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Indoor air pollution the toll


Causes No. of deaths Acute respiratory infections-Age less than 310000-470000 5 years, Chronic obstructive pulmonary disease. Blindness-women (not death) and prenatal 50000-130000 effects Tuberculosis on women Cardiovascular disease-women asthma Grand total: 50000-190000 410000-790000*

*Total annual deaths in India for women and children under 5 in these disease categories in the early 1990s.
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Fuel Index
Fuel type Dung Saw dust Crop residue Fuel wood Coal Charcoal 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. Kerosene Biogas Electricity Weight 1.00 0.97 0.96 0.82 0.46 0.31 0.08 0.04 0.05

Liquid Petroleum Gas 0.05

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)

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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

Income, Energy and Efficiency


Share of World Income
Low income group countries 3%

Middle income group countries 17%

Share of commerial energy


Low income group countries 13% High income group countries 51%

High income group countries 80%

Middle income group countries 36%

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Declining significance of Energy


80.00

Value of energy as % of GDP,1980


70.00

Value of energy as % of GDP,1998


60.00

50.00

40.00

30.00

20.00

10.00

0.00

In di a

na

Ne th er la nd G er m Un an ite y d Ki ng do m

Ca na da

Ke ny a

al ay sia

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De nm

Th ai

Ja pa n

W or ld

Ch i

ex ic

US A

la n

ar k

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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

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Price of Oil 1861 to 2001


50.00 45.00 40.00 35.00 Current US Dollar 30.00 25.00 20.00 15.00 10.00 5.00 0.00 1861 1871 1881 1891 1901 1911 1921 1931 1941 1951 1961 1971 1981 1991 2001 $ 2002 $ money of the day 100.00 90.00 80.00 Constant US Dollar 2002 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00

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US Energy Intensity
120000
Gross Domestic Product (GDP) Other Energy Consumption per Dollar of GDP Petroleum and Natural Gas Consumption per Dollar of GDP Energy Consumption per Dollar of GDP

2000

1800

100000 1600 Energy in 100 BTU per USD (2000)

GDP in 10 billion USD (2000)

1400 80000 1200

60000

1000

800 40000 600

400 20000 200

0 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Year

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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
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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
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