Browsing by Author "Howells, Mark"

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    Beyond free electricity: The cost of electric cooking in poor households and a market-friendly alternative
    (Elsevier, 2006) Howells, Mark; Victor, David G; Gaunt, Trevor; Elias, Rebecca J; Alfstad, Thomas
    The South African government is introducing a poverty-reduction policy that will supply households with a monthly 50kWh “Free Basic Electricity (FBE)” subsidy. We show that FBE distorts the energy choices of poor households by encouraging them to cook with electricity, whereas alternatives such as liquefied petroleum gas (LPG) can deliver a similar cooking service at a much lower cost to society. An alternative energy scheme, such as providing households with clean energy credits equivalent in value to the FBE’s cost, could deliver additional energy services worth at least 6% of total household welfare (and probably much more) at no additional public cost; those benefits are so large that they would cover the entire cost of LPG fuel needed to implement the scheme. The analysis is extremely sensitive to the coincidence of electric cooking with peak power demand on the South African grid and to assumptions regarding how South Africa will meet its looming shortfall in peak power capacity. One danger of FBE is that actual peak coincidence and the costs of supplying peak power could be much less favorable than we assume, and such uncertainties expose the South African power system to potentially very high costs of service.
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    Beyond the baseline - large scale climate friendly development
    (2005) Howells, Mark; House, Josh; Laitner, John “Skip”
    A deep impasse has emerged between industrialized and developing countries on the task of reducing carbon--the former arguing that the task is essential, and the latter putting a higher priority on development. The compromise, so far, has been to focus carbon abatement in developing countries on marginal activities that reduce carbon below a "baseline." The extra cost is paid as compensation by investors, and the emission credits are traded in markets. We suggest a different strategy that integrates climate protection and economic development. We illustrate with two large-scale development programs--one in South Africa, the other in China- -and demonstrate that there are significant quantities of emissions to be saved and that these do little harm to, and can even encourage, economic development. For these developing countries, we show that it is impossible to achieve these savings under current emissions mitigation mechanisms, and as such, they may not be realized until it is too late.
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    Determinants of electricity demand for newly electrified low-income African households
    (Elsevier, 2008) Louw, Kate; Howells, Mark; Dekenah, Marcus; Conradie, Beatrice
    Access to clean, affordable and appropriate energy is an important enabler of development. Energy allows households to meet their most basic subsistence needs; it is a central feature of all the millennium development goals (MDGs) and, while a lack of access to energy may not be a cause of poverty, addressing the energy needs of the impoverished lets them access services which in turn address the causes of poverty. While much is known about the factors affecting the decisions made when choosing between fuel types within a household, few quantitative studies have been carried out in South Africa to determine the extent to which these factors affect energy choice decisions. It is assumed that the factors traditionally included in economic demand such as price and income of the household affect choice; tastes and preferences as well as external factors such as distance to fuel suppliers are expected to influence preferences. This study follows two typical low-income rural sites in South Africa, Antioch and Garagapola, where the Electricity Basic Services Support Tariff (EBSST) was piloted in 2002. The EBSST is set at 50 kWh/ month per household for low domestic consumers; this is worth approximately R201 (7US$3). This subsidy is a lifeline tariff, where households receive the set amount of units per month, free of charge irrespective of whether more units are purchased. These data (collected in 2001 and 2002), recently collated with detailed electricity consumption data, allow us to determine the drivers of electricity consumption within these households. The sample analysed is taken from the initial phase of the study, when no FBE had been introduced to the households. This enabled the study presented here to make use of the well-populated datasets to assess what affects the electricity use decision in these households. This paper attempts to assess which factors affected the decision-making process for electricity consumption within these households. A brief history of the electricity industry and the electrification is provided and the theoretical background for the electricity consumption model is provided. It was found that income, woodfuel usage, iron ownership and credit obtained were significant in determining consumption levels within these households. Price and cross-price elasticities were difficult to assess due to lack of data within the sample. The results have many possible implications for policy, including the effect that easily obtained credit has for low-income households.
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    An economic framework for energy transitions
    (Cape Peninsula University of Technology, 2016-02-19) Howells, Mark; Louw, Kate; Conradie, Beatrice; Käck, Emila; Jonsson, Sandra
    There is special interest in the patterns of fuel use among low-income rural communities and their transition from one form of energy use pattern to another. Understanding energy transitions will help in developing energy policies for the poor and promoting new energy markets that will improve their household budgets. Energy suppliers, such as utilities, would be better able to work in low-income communities for their mutual benefit. Households could benefit from more convenient and healthier forms of energy. This paper develops a simple micro-economic framework describing aspects of energy supply and use in lowincome settings. We assume that consumer utility is the driver of transitions, subject to fuel-appliance availability and budget constraints. We explore the hypothesis that reductions in “market failure” often help to encourage energy transitions.
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    Energy policies for sustainable development in South Africa: options for the future
    (Energy Research Centre, University of Cape Town., 2006) Davidson, Ogunlade; Kenny, Andrew; Prasad, Gisela; Nkomo, Jabavu; Sparks, Debbie; Howells, Mark; Alfstad, Thomas; Winkler, Harald
    The purpose of this publication is to present a profile of energy in South Africa, assess trends and analyse some options for the future. It is divided into two parts – Part I presents a profile of energy and sustainable development in South Africa, while Part II uses modelling tools and indicators to assess future policy options for the country.
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    A selective assessment of business opportunities in South Africa under the Clean Development Mechanism
    (Energy Research Centre, University of Cape Town., 2006) Van Es, Denis; Winkler, Harald; Howells, Mark
    This report first summarizes matters related to the Clean Development Mechanism (CDM) in the South African context, considering its current position and its position after 2012. It then discusses South Africa in comparison with Brazil and India, summarized in terms of selected key indicators. CDM projects in Brazil and India, which are further along in terms of project development, are then outlined. Finally the report estimates the costs and benefits of CDM potential in industry through the deployment of energy efficiency measures as well as renewable electricity generation.
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    South African Energy Policies for Sustainable Development
    (University of Cape Town, 2005) Winkler, Harald; Alfstad, Thomas; Howells, Mark
    This report models a range of energy policies for sustainable development in South Africa and evaluates the results against energy indicators of sustainable development. Demand- and supply-side policies exist that can contribute both to energy objectives, and also to broader sustainable development goals. The report builds on previous work on a South African profile on energy for sustainable development (ERC 2004a), identifying, modelling and evaluating future policy options. The purpose of the report is to present possible energy futures for the country and to demonstrate how indicators of sustainable development can be used to assess options. This method, we argue, provides the means for policymakers to identify synergies and trade-offs between options, and to evaluate them in economic, social and environmental dimensions.