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    Problems of Poverty

    Less Energy, Low Efficiency,Polluted Environment

    Barun Mitra,Liberty Institute

    www.libertyindia.org

    Brussels, 24 November 2004

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    Liberty Institute, New Delhi 2

    India on the Energy Map

    482409,788India

    13914,474Bangladesh

    8681,056,963China

    81591,687,886USA

    Commercial energy use

    per capita (kg of oil

    equivalent)

    Commercial Energy

    Production (thousand metric

    tonnes of oil equivalent )

    CountryCommercial energy production and per capita, 1999

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    Liberty Institute, New Delhi 3

    Energy in India

    5.

    4.

    3.

    2.

    1.

    Sl. No.

    437.69305.19208.30147.05Total primary energy

    supply (3+4)

    139.02122.07108.4886.72Primary non-

    commercial energysupply

    298.67183.1299.8260.33Total commercialenergy supply (1+3)

    87.8531.6924.6312.66Net imports

    210.83151.4375.1947.67Commercial energyproduction

    2001-021990-911980-811970-71Source of Energy

    Unit: million tonnes of oil equivalent (MTOE)

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    Liberty Institute, New Delhi 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

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    Liberty Institute, New Delhi 5

    Indoor air pollution

    Traditional

    Fuel, 72.33%

    LPG, 17.50%

    Others, 9.66%

    Electricity,

    0.18%

    Rural Kitchen

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    Liberty Institute, New Delhi 6

    Lighting Indian Homes

    Electricity,

    55.85%

    Kerosene,43.30%

    Others, 0.85%

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    Liberty Institute, New Delhi 7

    Indoor air pollution the toll

    410000-790000*Grand total:

    50000-190000Cardiovascular disease-women asthma

    50000-130000Blindness-women (not death) and prenatal

    effects Tuberculosis on women

    310000-470000Acute respiratory infections-Age less than5 years, Chronic obstructive pulmonary

    disease.

    No. of deathsCauses

    *Total annual deaths in India for women and children under 5 in these disease

    categories in the early 1990s.

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    Liberty Institute, New Delhi 8

    Fuel Index

    0.05Electricity

    0.04Biogas0.05Liquid Petroleum Gas

    0.08Kerosene

    0.31Charcoal

    0.46Coal

    0.82Fuel wood

    0.96Crop residue

    0.97Saw dust

    1.00Dung

    WeightFuel type

    90% of households in small villages rely

    on fuels like firewood, animal dung andcrop residue88% of rural women population usedthese fuels for their daily cooking.

    The more convenient, efficient and cleaner the fuel, less is itsweight. Since animal dung lies at lowest end, the other fuels are

    weighed with respect to dung. (Parekh, et al, 2003)

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    Liberty Institute, New Delhi 9

    Restricted economy, Greater

    vulnerability

    Taxes and Tariffs reduce consumptionand competitiveness and efficiency

    Poor are most vulnerability to naturalcalamity

    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 tollranges in 10s

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    Liberty Institute, New Delhi 10

    Income, Energy and Efficiency

    Lowincome

    group

    countries

    3%

    High

    income

    group

    countries80%

    Middle

    income

    group

    countries

    17%

    Share of commerial energy

    Middle

    income groupcountries

    36%

    Low incomegroup

    countries

    13%

    High income

    group

    countries51%

    Share of World Income

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    Liberty Institute, New Delhi 11

    Declining significance of

    Energy

    0.00

    10.00

    20.00

    30.00

    40.00

    50.00

    60.00

    70.00

    80.00

    K

    enya

    India

    China

    Thail

    and

    Malay

    siaW

    orld

    Mexico

    Ca

    nada

    Netherl

    and

    Germa

    ny

    Unite

    dKingd

    om

    Den

    mark

    USA

    Japa

    n

    Value of energy as % of GDP,1980

    Value of energy as % of GDP,1998

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    Liberty Institute, New Delhi 12

    Poverty Kills Today

    Debate on global warming, shifts focus fromproblems 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 thefuture

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    Liberty Institute, New Delhi 13

    Price of Oil 1861 to 2001

    0.00

    5.00

    10.00

    15.00

    20.00

    25.00

    30.00

    35.00

    40.00

    45.00

    50.00

    1861

    1871

    1881

    1891

    1901

    1911

    1921

    1931

    1941

    1951

    1961

    1971

    1981

    1991

    2001

    CurrentUSD

    ollar

    0.00

    10.00

    20.00

    30.00

    40.00

    50.00

    60.00

    70.00

    80.00

    90.00

    100.00

    ConstantUSD

    ollar

    2002

    $ 2002$ money of the day

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    Liberty Institute, New Delhi 14

    US Energy Intensity

    0

    20000

    40000

    60000

    80000

    100000

    120000

    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

    GDP

    in

    10billion

    USD

    (2000)

    0

    200

    400

    600

    800

    1000

    1200

    1400

    1600

    1800

    2000

    Energyin

    100BTUp

    erUSD(

    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

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    Liberty Institute, New Delhi 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

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    Liberty Institute, New Delhi 16

    Conservation through

    Consumption

    Development is the Key that unlocksthe potential of increased consumption

    Economic freedom creates thecompetitive environment for

    harnessing human creativity leading toefficiency gains