Beyond free electricity: The cost of electric cooking in poor households and a market-friendly alternative

dc.contributor.authorHowells, Mark
dc.contributor.authorVictor, David G
dc.contributor.authorGaunt, Trevor
dc.contributor.authorElias, Rebecca J
dc.contributor.authorAlfstad, Thomas
dc.date.accessioned2016-02-05T06:20:33Z
dc.date.available2016-02-05T06:20:33Z
dc.date.issued2006
dc.date.updated2016-02-03T07:53:25Z
dc.description.abstractThe 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.en_ZA
dc.identifierhttp://dx.doi.org/10.1016/j.enpol.2005.07.006
dc.identifier.apacitationHowells, M., Victor, D. G., Gaunt, T., Elias, R. J., & Alfstad, T. (2006). Beyond free electricity: The cost of electric cooking in poor households and a market-friendly alternative. <i>Energy Policy</i>, http://hdl.handle.net/11427/16753en_ZA
dc.identifier.chicagocitationHowells, Mark, David G Victor, Trevor Gaunt, Rebecca J Elias, and Thomas Alfstad "Beyond free electricity: The cost of electric cooking in poor households and a market-friendly alternative." <i>Energy Policy</i> (2006) http://hdl.handle.net/11427/16753en_ZA
dc.identifier.citationHowells, M., Victor, D. G., Gaunt, T., Elias, R. J., & Alfstad, T. (2006). Beyond free electricity: The costs of electric cooking in poor households and a market-friendly alternative. Energy Policy, 34(17), 3351-3358.en_ZA
dc.identifier.issn0301-4215en_ZA
dc.identifier.ris TY - Journal Article AU - Howells, Mark AU - Victor, David G AU - Gaunt, Trevor AU - Elias, Rebecca J AU - Alfstad, Thomas AB - 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. DA - 2006 DB - OpenUCT DP - University of Cape Town J1 - Energy Policy LK - https://open.uct.ac.za PB - University of Cape Town PY - 2006 SM - 0301-4215 T1 - Beyond free electricity: The cost of electric cooking in poor households and a market-friendly alternative TI - Beyond free electricity: The cost of electric cooking in poor households and a market-friendly alternative UR - http://hdl.handle.net/11427/16753 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/16753
dc.identifier.vancouvercitationHowells M, Victor DG, Gaunt T, Elias RJ, Alfstad T. Beyond free electricity: The cost of electric cooking in poor households and a market-friendly alternative. Energy Policy. 2006; http://hdl.handle.net/11427/16753.en_ZA
dc.languageengen_ZA
dc.publisherElsevieren_ZA
dc.publisher.departmentEnergy Research Centreen_ZA
dc.publisher.facultyFaculty of Engineering and the Built Environment
dc.publisher.institutionUniversity of Cape Town
dc.sourceEnergy Policyen_ZA
dc.source.urihttp://www.journals.elsevier.com/energy-policy/
dc.subject.otherPoverty
dc.subject.otherElectrification
dc.subject.otherLPG
dc.titleBeyond free electricity: The cost of electric cooking in poor households and a market-friendly alternativeen_ZA
dc.typeJournal Articleen_ZA
uct.subject.keywordsBeyond Free Electricityen_ZA
uct.subject.keywordsElectric Cookingen_ZA
uct.type.filetypeText
uct.type.filetypeImage
uct.type.publicationResearchen_ZA
uct.type.resourceArticleen_ZA
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