residential energy use patterns in cebu city

7/30/2019 Residential Energy Use Patterns in Cebu City

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RESIDENTIAL ENERGY USE PATTERNS IN CEBU CITY,PHILIPPINES

TERREN CE G. BENSEL t$ and ELIZABETH M. REMED IOgiDepartm ent of Environmental Science, Allegheny College, Meadville, PA 16335, U.S.A. and rjAftiliated

Non-Conve ntional Energy Center, University of San Carlos. Cebu City 6000, Philippines

(Received 15 July 1994)

Abstract-Results of a comprehensive survey of residential sector energy use in the second largesturban center in the Philippines are presented. A total of 603 households were interviewed regardingtheir energy consumption and purchase patterns, fuel-switching history, and reasons for fuel-choiceselection. LPG and fuelwood are the most widely-used cooking fuels in the residential sector,followed in importance by kerosene, charcoal and electricity. Multiple cooking fuel use is wide-spread. Electricity is used in 93% of the citys households, primarily for lighting and appliances.Average household electricity consum ption increases 1500 % between the lowest and highestincome groups, indicating that future growth in residential electricity demand could be rapid underconditions of rising living standards. Economies of scale in household energy consumption, per-centage of household income going to energy purchases, and the impact of fuel-switching andcommercial food vendors on the types and amounts of energy consum ed in the residential sectorare also discussed.

INTRODUCTION

The share of the developing worlds population residing in cities has doubled from 17% in 1950 to34% in 1990. This figure is expected to reach 40% by the year 2000 w hen tw o billion people will beliving in developing country urban are as, and 43 of 59 cities in the world w ith populations exceedingfive million will be located in developing regions.. The rapid pace of urbanization in developingcountries generates fundamental change s in energy and material use patterns, as well as in the comp o-sition and concentration of pollution and was te flow~ .-~ Improv ed understanding of urban energy sys-tems is an essential requirement in assessing the local, regional and global environmental impacts ofurbanization and urban energy use, as well as in designing policies and technolog ies whic h can helpto mitigate these impacts.

We present results of a comprehensive survey of household energy use in the second largest urbancenter in the Philippines, the Cebu City metropolitan area. A total of 603 households in the 49 urbanbarangaysa of Cebu City were interviewed between February and May 199 2 regarding their energypurchase and utilization patterns. Respondent households were chosen on a random basis from themaster lists of the governments 1990 Census of Population and Housing.11 The primary objectives ofthis survey were to (i) quantify household consumption of fuelwood, charcoal, kerosene, liquefiedpetroleum gas (LPG ), electricity and othe r fuels and (ii) determine the major social, econom ic, culturaland environmental factors that drive fuel-choice and fuel-use p atterns in the residential sector.

THE STUDY SITE

Cebu City is the capital of the island province of Cebu, located 550 km south-east of Manila in thecenter of the Visayan Island region. Its 1990 population stood at 6 10,4 17, with the Cebu City metropoli-tan area, including Cebu, M andaue and Lapu-L apu Cities, as well as two adjacent municipalities, havinga combined population of I.1 million. Between 1980 and 19 90, the population of Metro Cebu grew$To whom al l correspondence should be addressed.TA barangay is the smallest political unit in the Philippines. Cebu City cons ists of 80 barangays. 31 of which are relatively

remote a nd located in the mountains west of the city. The 1990 population of the 49 urban barangays studied was 549,663.l/Details of survey design an d impleme ntation. as well a s an outline of the questionnaire used in the survey. can be requested

from the lead author.17 3


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17 4 Terrence G. Bensel and E lizabeth M. Remedio

at an average rate of 3. I % per annum, compared with rural population growth rates in the province of1.9% and a national average of 2.3%..Since 1 987, Metro Ceb u has experienced rapid economic grow th, with some indicators pointing togrowth rates as high as 15% per annum in recent years. J Future development plans for the city an dprovince are based primarily on an expansion of industrial and manufacturing activity, including anincrease in the number and size of special industrial zones and export processing zones. Continuedupgrading and improvement of Cebus infrastructure, and expansion of the islands international airand sea port facilities, will likely strengthen Cebus status as the premier city and commercial andtrading center of the southern Philippines.

The rapid pace of economic development in Metro Cebu has also served to attract an increasingnumber of migrants from rural areas of the province, as well as from surrounding islands. This influxis threatening to overwhelm new job creation, and is straining already inadequate infrastructure andsocial services in many parts of the city. Urban population grow th and rural-urban migration areworsening the crowded conditions found in Cebus low-income squatter districts. Basic services in theseareas, including water, sewage, waste disposal and power, are sorely lacking, and their absence isbelieved to contribute to relatively high rates of infant mortality and morbidity in these communities.4Traffic congestion, crime, solid waste problems, air pollution, water pollution, and power shortageshave also worsened in recent years.

RES IDENT IA L SEC TOR ENERGY USE

Residential sector energy consumption accounts for 45% of overall energy use in developing coun-tries.15 This con sumption includes hig h rates of biomass fuel use on a relatively inefficient basis inrural regions, but even in highly urbanized settings the residential sector can still account for over halfof total energy use.4 The largest portion of residential sector energy use in developing countries goestowards food preparation, which accounts for 85% of the total in Brazil, 91% in India, and 97% inKenya. I5

Increased urbanization and rising incomes tend to alter these shares,6 with electricity use for lightingand appliances making up a larger portion of household energy consumption, Rapid growth in residentialsector electricity deman d, such as the lo-15% annual increases experienced in recent years in a numberof Asian developing nations, poses serious problems for energy planners. Besides the need to add newcapacity to simply keep up with growing d emand, residential sector electricity use is characterized bylarge peaks during morning and evening hours, complicating load management and necessitating theinstallation and use of relatively expensive peaking power facilities.16*

A careful analysis and quantification of residential energy use in Cebu is important for a number ofreasons. First, Cebu is experiencing annual increases in electricity demand of from 9.2 to 11.4% ,* andthe residential sector is responsible for much of this increase. I9 Second, local government officials areconcerned that high levels of urban fuelwood and charcoal demand may be having negative impactson Cebus rural environment, although research conducted by these authors indicates that urban wood-fuel demand may actually be promoting more widespread reforestation and agroforestry practices inthe uplands.20.2Either way, a better understanding of woodfuel consumption patterns in the residentialsector is important for rural resource planning. Third, increased substitution of kerosene and LPG forwoodfuels in the residential sector of medium-sized cities like Cebu has implications for the Philippinesbalance of payments picture since 99.5% of the nations oil requirements are met through imports.

C OOKING FU EL C ONSUM P T ION

Three-fourths of low-income households in Cebu rely on fuelwood or charcoal as their primarycooking fuel, while over 80% in the highest-income category use LPG (Table I). The percentage ofhouseholds using kerosene as their primary cooking fuel increases in the lower-middle and middle-income categories, then sharply declines in importance after that (Table 1).

Besides a single primary cooking fuel, many households in Cebu make use of one or more secondaryfuels for supplemental purposes, as a backup, or for fuel-specific cooking activities (Table 2). Charcoal,for example, is used as a primary cooking fuel in only 5.6% of the citys househ olds (Table I), but it


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Residential energy use patterns

Table I. Primary cooking fuels in the residential sector of Cebu City (in percent), 1992.

Monthly Income Range?Cooking Fuel


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176 Terrence G. Bensel nd ElizabethM. Remedioeither by rural traders or fuelwood-cutters. Households having fuelwood delivered generally operatesome form of business on the premises, such as an eatery, which requires fairly substantial quantitiesof this fuel. The remaining 18.4% of residential fuelwood requirements are met by wood that is freely-gathered or collected from the urban environment. Many households obtain scrap wood from construc-tion or demolition activities occurring on or near their premises, or from household members workingin lumber yards, construction sites, or as a carpenter. O thers collect wood from vacant lots, garbagedumps, parks, and along riverbanks and the seacoast. Slightly over half (53.6%) of all fuelwood-usinghouseholds make som e use of scrap or other freely-gathered wood, and 20.3% are able to meet all oftheir fuelwood requirements in this fashion.

Less than two-thirds of the fuelwood consumed in Cebu is actually in the form of woody biomassoriginating from trees and shrubs grown in rural areas of the province. Scrap wood, both purchasedand freely collected, accounts for 19% of the total. Non-woody coconut fronds meet 16% of totalconsumption, and are sold in urban markets for 20-30% less per unit than regular fuelwood. Theremaining 2% of residential fuelwood demand is accounted for by bamboo, which is both purchasedfrom dealers and freely gathered along riverbanks and the seacoast.

For households using fuelwood as their primary cooking fuel, average per capita consumption levelsare 303 kg (4.8 GJ)/annum , and average household con sumption levels are 1757 kg (28.1 GJ)/annum .Per capita fuelwood requirements are slightly lower in Cebu than those reported in other developingcountry energy studies.- This could be due to the fairly common practice of multiple fuel use inCebus residential sector, which tends to depress consumption levels of the primary cooking fuel. Inaddition, the frequency of meal purchases from commercial food vendors is quite high among low-income households (see below), and since many of these households use fuelwood as their primarycooking fuel this could be reducing per capita consumption.

Average per capita fuelwood consumption drops from aroun d 40 kg/month in households with oneor two memb ers, to only around 12 kg/month for households with nine or more mem bers (see Fig. 1).This tendency towards scale economies in fuelwood consumption has been observed in other developingcountry urban settings,24.28- nd is an important consideration in projecting future levels of woodfueldemand since it implies that demographic changes that alter household structure need to be considered.

Households using fuelwood as their primary cooking fuel spent an average of only 3.4% of theirmonthly income on purchases of this fuel, although this figure was much higher for some householdsin the lowest income category. The low average figure is due in part to the widespread practice ofusing scrap and other freely gathered wood. Among low-income households, 44% of all fuelwood usedis freely gathered.

Respondents gave a variety of reasons besides income for their decision to utilize fuelwood. Apreference for the taste of food cooked with wood was the most common. Next was a perception offuelwood as an inexpensive fuel, although by this many respondents were referring to the overalleconomics of using wood-including stove costs and ability to purchase in small quantities. Ease ofpurchase was cited by 33.9% of respondents, w ith most households reportedly able to purchase fuelwood

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1-2 3-4 5-6 7-8 9-10 ) z-10Number of household members

Fig. I. Household size and monthly per capita fuelwood consumption (in kg) for households using fuelwoodas their primary cooking fuel, Cebu City , 1992. Central boxes extend from the tirst to the third quartile. Th ehorizontal line within each box represents the median. the square indicates the mean. Vertical lines extendingfrom the central box reach from the 10th percentile to the 90th perc entile. O utliers b eyond thes e points are

not shown, although they are included in the calculation of the mean, m edian and other statistics.


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Residential energy use pattcrns 177

in affordable bundles within a few hundred meters from their residence. Close to one-third of respon-dents cited an access to free supplies of scrap woo d. Other reasons given w ere that fuelwood gives offmore heat and is better for certain types of cooking, and that fuelwood stoves are inexpensive or canbe made for free.B. Charcoal

Charcoal is the primary cooking fuel for 5.6% of Cebus households (Table I), and is used on atleast a secondary basis in 53.4% of the total (Table 2). Aggregate charcoal consumption in the residen-tial sector in 1992 is estimated at 7966 metric tons, approximately 38,237 BFOE or 239 TJ.? Althoughlow-income households are more likely to rely on charcoal as their primary cooking fuel, the proportionof house holds utilizing this fuel on at least a seconda ry basis actually increases with income (Table 2)due to the fairly widespread practice in high-income households of using charcoal to cook rice and forgrilling meats and fish.

Most households purchase charcoal in cellophane bags weighing under 1 kg, at an average per unitprice of PS/kg. These bags are available in neighborhood stores and from itinerant charcoal vendors.94.4% of households using charcoal reported being able to purchase this fuel within 1 km from theirresidence. Households making greater use of charcoal for family cooking or for commercial purposes,as well as high-income families, generally purchase charcoal by the sack, either from urban traders orfrom rural traders who deliver this fuel directly to them. Sack s of charcoal typically weigh 15- 16 kgeach, and sell for around P60/sack.

For households using charcoal as their primary cooking fuel, average per capita consumption levelsare 65 kg ( 1.95 GJ)/annum, and average household consumption levels are 380 kg ( 11.4 GJ)/annum.Most households using charcoal also supplement this with fuelwood and kerosene. Per capita monthlycharcoal consumption drops from around IO kg in households with three members or less, to 4.8 kg inhouseholds with more than six people. H ouseholds using charcoal as their primary cooking fuel spentan average of 4.9% of their monthly income on purchases of this fuel, although this figure varied fromless than 1% for high-income households up to 16% for a number of low-income families.

C. KeroseneKerosene is the primary cooking fuel for 19.9% of Cebus households (Table l), and is used on atleast a seconda ry basis in 30.3 % of the total (Table 2). Kerosene is also used in small quantities by62.5% of the citys households for lamps used during electric power outages, as well as a fire-starterin many fuelwood and charcoal-using households. Residential sector kerosene consumption in 1992 isestimated at 6.6 million liters, approximately 36,036 B FOE or 225 TJ. Kerosene is most widely usedin the lower-middle and middle income categories, a pattern that supports the notion of kerosene asa transition fuel between woodfuels and LPG.

Kerosene is widely available throughout the city, with 83.8% of households reportedly able to pur-chase this fuel within 1 km of their residence. Kerosene is least expensive when purchased by the literfrom formal sector service stations (the average official price in 1992 was around P7SO/liter), but thegreatest number of households purchase this fuel from neighborhood stores which also sell by the liter(typically for around PIO) as well as in quantities as small as 50 ml at a per unit price as high asP20/liter. Kerosene purchase patterns are similar to those observed for fuelwood and charcoal, withrelatively low-income hous eholds tending to purch ase sm aller quantities on a more frequent basis (ofteni-2 times a day) but at a higher per unit cost.

For households using kerosene as their primary cooking fuel, average per capita and householdconsumption levels are 37 liters ( 1.3 GJ) and 1 97 liters (6.9 GJ) per annum, respectively. One-fourthof households using kerosene also utilize fuelwood on a supplemental basis (on average seven timesa month), and 1 0% use charcoal (on average four times a month). A common practice is to use fuelwoodor charcoal for cooking one large pot of rice to last the day, while a kerosene stove is utilized inpreparing or heating up vegetable, fish or meat side dishes at each meal.

Average per capita kerosene consumption drops from 4.5 liters a month in households with less thanthree members, to 2.5 liters a month in those with more than five. Households using kerosene spent

fRoughly one-third (2481 ton s) of the charcoal used in Cebus reGdential \ector w as for Ironing rather than for cooking


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178 Terrence G. Bensel and Elizabeth M. Remedioan average of 2.9% of their monthly income on this fuel, although for some families in the low-incomegroup this figure was as high as 15-20%. The higher share of monthly income going to kerosenepurchases in low-income households is a result both of lower overall incomes as well as higher perunit prices paid by these families due to their purchasing in smaller quantities from neighborhood stores.

Households using kerosene cited the convenience of this fuel relative to fuelwood, and its affordabilityrelative to LPG, as the most important factors in their decision. Locally-made kerosene stoves can bepurchased new for P200-300 , re-built stoves sell for as low as PlOO. In addition, the use of keroseneas a cooking fuel does not generate smoke, an important consideration in densely populated low -incomesettlements. That many low- and middle-income households continue to use fuelwood instead of kero-sene is largely a result of perceived taste differences between foods cooked with kerosene and wood,as well as concern over kerosene stove safety, rather than because of fuel/stove costs or availability.D . L i quej i ed pet r o l eum gas

LPG is the primary cooking fuel for 38% of Cebus households (Table l), and is used at least as asecondary fuel by 41.6% of the total (Table 2). The small percentage difference between householdsusing LPG as their primary cooking fuel and those using it on at least a secondary basis suggests thatonce a household obtains the equipment necessary to utilize LPG they rely on this fuel for the largestportion of their household cooking energy requirements. Residential sector LPG use in 1992 is estimatedat 5787 tons, approximately 41,840 B FOE or 262 TJ. LPG is most widely use d in the middle, upper-middle, and upper-income categories, although close to one-fourth of lower-middle income householdsare also able to afford its use.

The three major oil companies operating in the Philippines market LPG under their own brand namesand in non-transferable cylinders. A num ber of local bottlers also buy in bulk from the oil companiesand then market their own brands. Three-fourths (75.6%) of LPG-using households bring their emptycylinders to service stations to be replaced, with the rest having replacement bottles delivered. AlthoughLPG delivery services are available in most parts of the city, these have a reputation for under-fillingbottles. In addition, after running out of fuel a household usually has to wait l-2 days before a replace-ment is delivered, and since most cannot afford to keep two cylinders on a rotating basis they areforced to bring their tanks to service stations. Replacing empty LPG canisters is perhaps the only majorinconvenience associated with using this fuel, especially since most LPG-using households have totravel over 2 km to have this done. The fact that upper-middle and upper-income households usuallyrely on household help to do this for them makes this less of an issue.

For households using LPG as their primary cooking fuel, average per capita and household consump-tion levels are 24 kg (1.1 GJ) and 138 kg (6.2 GJ) per an num, respectively. Nearly 30% of householdsusing LPG also use charcoal for suppleme ntal cooking p urposes (on average 14 times a month). Afairly common practice (even among high-income households) is to use charcoal for cooking rice,primarily for taste reasons, while LPG is used for the balance of the cooking. Since most cooking inhigh-income households is done by hired servants, the relative inconvenience associated w ith usingcharcoal is less of a problem. One in 10 LPG-using households also utilize an electric stove or burner,?while 16.5% make use of an electric rice cooker, on average over ten times a month.Average per capita LPG consumption declines from 3.2 kg a month in households with less thanthree mem bers, to 1.6 kg a month in those with more than six. LPG-using households spend an averageof only 2% of their monthly income on purchases of this fuel. Even for households earning less thanP50OO /month this figure only averaged 3.8%, suggesting that LPG fuel purchases (exclusive of stoveand equipment costs) are not a major expense even for low-income families.LPG is the most preferred household cooking fuel in urban Cebu. It is more convenient and cleanto use than other available cooking fuels, and it does not generally impart a bad aroma o r oily tasteto food as is commonly said to happen with kerosene. Howev er, LPG stove costs and the lumpynature of paymen ts for this fuel continue to preclude many low-income hous eholds from using it.Depending on the model and size, a new LPG stove can cost anywhere from P800-10,000. Purchaseof an LPG cylinder requires another PlOO O or a hefty deposit. Even if low-income households couldafford such a purchase, the need to buy LPG 11 kg at a time, requiring a lump-sum payment of P130-

Some LPG stove/oven combinations have an electric burner built into them as the fourth unit on top.


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Residential energy use patterns 179

Fig. 2. Monthly frequency of household meal purchases from commercial food vendors, Ceb u Ctty. 1992

140, discourages many from using this fuel. Fear of fire or explosion, and the high risk of an LPGstove or cylinder being s tolen, were also cited as reasons for not using this fuel. Rising incomes, newone-burner mini-LPG stove designs, and marketing of 6 kg LPG canisters, could serve to help overcomesome of these obstacles in the future.

IMPACT OF PREPARED FOOD PURCHASES ON COOKING FUEL USE

An increasing reliance on purchased meals and foods cooked outside the home is a common trendin many urbanizing regions of Asia and the developing world .3-3h This trend is due in part to increasedfemale participation in the wage-pay ing work force, leaving les s time for marketing and meal prep-aration. Since commercial food vendors gen erally coo k large quantities of food they could be achievingscale econom ies in energy u se, thereby redu cing overall pe r capita energy requirem ents for meal prep-aration.

In Cebu, the largest concentration of comm ercial food vendors can be found in low-income districtsand in areas where there are factories, schools, or government offices. Average frequency of mealpurchases from commercial food vendors is highest among low-income households (Fig. 2), with over40% of households in the lowest-income group purchasing from food vendors at least once a day, whileclose to one-fourth patronize these vendors at least twice dai1y.t

Frequency of meal purchases from commercial food vendors also varies with settlement pattern(Table 3). In less populated peri-urban districts, households purchase meals from food vendors 14.2times per month on average, with low-income households showing a greater tendency towards thesepurch ases. In 13 inner-city districts an alyzed, averag e monthly meal purch ases increase to over 30.with low-income households in these areas averaging 37 purchases per month. W e attribute these differ-ences to a combination of factors. First, mem bers o f low-income house holds in densely-pop ulated dis-tricts are often involved in both formal and informal sector economic activity, leaving less time formeal preparation . Second , the close spacing of housing units in densely-pop ulated regions of the citycan preclude regular use of fuelwood due to problems with smoke. At the same time, low-incomefamilies in these areas are often unable to purchase kerosene or LPG stoves, forcing them to resort topurchasing meals from food vendors.

Increased meal purchases from commercial food vendors could be having an impact on cooking fuelTable 3. Average monthly frequency of meal purchases from commercial food vendors in Cebu

City, by income ca tegory an d settlement pattern. 1992.Monthly Income Range (P)

Settlement Pattern


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18 0 TerrenceG. Benseland ElizabethM. Remediodemand in the city, and especially on levels of fuelwood use. This is because food vendors sell mainlyto low-income households, most of whom rely on fuelwood, as well as because 70% of food vendorsin the city use fuelwood themselves. 20,37Whether overall levels of fuelwood consumption will declinedue to economies of scale in use is uncertain, although evidence from other developing countries29~38and from Cebu (see Fig. 1) suggests that as household size-and presumably the amount of food beingcooked-increases, per capita fuelwood use declines substantially.

FUEL-SWITCHINGA widely-reported phenomenon in developing country urban energy studies is that of a household

fuel-switching transition from traditional biomass to more modern cooking fuels like kerosene, LPGand electricity.6*32.39-42 number of factors are posited to be behind fuel-switching trends, namely,increasing incomes, improved availability and access to modern fuels, and basic changes in urbanlifestyles and settlement patterns which make cleaner, more compact fuels such as kerosene and LPGmore attractive to residential users.

Generally speaking, the extent to which a fuel-switching transition occurs in a given urban area isdetermined by the availability of different fuels and the level of economic development. In cities likeBangkok, Kuala Lumpur and Manila, only a small percentage of households still use biomass.34*39,43In smaller cities like Cebu, or in cities located in relatively low-income countries such as Port-au-Prince, Haiti or Kano, Nigeria, woodfuels still meet a large share of household cooking energy require-ments.25*44s45esidential fuel-switching is often non-discrete, even after a household has switched toLPG or kerosene they may still make extensive use of woodfuels. In addition, reverse fuel-switchinghas also been known to occur under deteriorating economic conditions or during periods of oil sup-ply uncertainty.4*33*46

Since 1960, there has been a steady trend away from woodfuels and towards more widespread useof LPG and kerosene in Cebus residential sector (Fig. 3). The most rapid change occurred between1960 and 1970, at a time of low oil prices and improved availability of petroleum products. This trendslowed between 1970 and 1980, a period of sharp oil price increases a nd occasional sh ortages ofpetroleum p roducts. Between 1980 and 1990 the percentage of households u sing woodfuel droppedsharply again, with increased kerosene usage accounting for much of the difference (Fig. 3). Despitea 50% decline between 1960 and 1990 in the proportion of households using woodfuels, the absolutenumber of households relying on these fuels has increased by close to 10,000 over the same perioddue to a tripling of the citys population (see Fig. 4).

Out of our sample of 603 households, 113 (18.7%) reported at least one fuel-switch during theprevious 5 years, with a number undergoing two or more such switches over the same period (Table4). The two most common fuel-switches were from fuelwood to kerosene (34.5% of the total) andkerosene to LPG (15% of the total), a finding which tends to support the notion that fuel-switchingproceeds from traditional to modern fuels, and that kerosene serves as a transition fuel between wood-fuels and the more preferred modern fuels, LPG and electricity.

Of those households switching out of fuelwood, the most important reasons given relate to the incon-

Fig. 3. Primary cooking fuels in the residential sector of Cebu City (in percent), 1960-19908~47-49


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Residential energy use patterns

Fig. 4. Primary cooking fuels in the residential sector of Cehu City (in number of households), 1960-1990.x~ -J~

Table 4. Frequency of fuel-switching among a sample of 603 households in Cebu Citybetween 1987 and 1992.

Monthly Income Range (P)Type of


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182 Terrence G. Bensel and Elizabeth M. Remedio

16

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income and upper-middle income categories (Fig. 6). As household income approaches and exceedsPl O,OO O/m onth, owne rship and use of electricity-intensive devices like refrigerato rs, color televisions,washing machines and air conditioners increase dramatically. For washing machines and air condi-tioners, there is another sharp increase in ownership between upper-middle and high-income households(Fig. 6).

Base d on frequency of owne rship and electricity requirements, refrigerato rs are probably the largestconsum er of residential secto r electricity, followe d by lighting. T he percentag e of house holds in CebuCity owning air conditioners in 199 2 (5.3% ) is substantially highe r than the 1989 national average ofless than 1%.I Although owned by only 5% of households in the city, air conditioners could be respon-sible for as much as 15-2 0% of residential electricity demand in Cebu du e to their high energy require-ments and the relatively low efficiency of dome stically-produc ed units. Electricity use for residentialair conditioning in the Philippines is projected to increase over 10 % per annum throughout the 199Os,com pared with overall gr owt h in residential electricity demand of less than 5% per annum. Giventheir high energy req uirements, the low efficiency of most units currently on the marke t, and projectedincreases in their owne rship and use, air conditioners offer an attractive target for progr ams aimed atpromoting increased penetration of more efficient units into the marke t.

Expenditures on electricity as a percentage of income vary much less between households of differentincome categories than was the case for cooking fuels. Households with incomes below P50001 monthspent an average of 5.1% of their total income on electricity, compared with 4.1% for households withmonthly incomes g reater than P10,OO O.

Residential sector electricity use in Cebu City appe ars far from saturation, and future improvem entsin living standards will certainly entail more wide spread owne rship of electricity-intensive devices (seeFig. 6). Pow er sector planning in the region should account for this, and wh ere feasible considerationshould be given to the prospect of offsetting increased appliance ownership with programs to improveend-use efficiency.

OVERALL LEVELS OF RESIDENTIAL ENERGY DEMANDResidential sector energy consumption in Cebu City (102,446 households) in 1992 is estimated at

2077 TJ on a delivered energy basis, or approximately 3779 M J of energy per capita per year. Onaverage, households require 1646 MJ of energy per month, although this figure varies from 14 20 MJfor low-income households up to 2558 MJ in the high-income group (Fig. 7)

As a result of the relatively low efficiencies with which fuelwood is converted from delivered intouseful energy, fuelw ood mak es the largest contribution (43.8 %) to meeting ov erall delivered residentialenergy requiremen ts (Fig. 7). In addition, delivered energy consumption levels are roughly equal inlow- and middle-income households due to high levels of fuelwood use in the former. W hen residentialenergy consumption is adjusted to reflect assum ed end-use efficiencies,? the importance of fuelwo od

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18 4 Terrence G. Bensel and Elizabeth M. Remedio

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acts as a normal good from the lowest to the middle income category, and then as an inferior goodbeyond that. LPG is clearly a normal good across all income categories, as is electricity which showsthe most rapid increase in use as incomes rise.

On average, households in Cebu City spend 8% of their monthly income on energy purchases (Fig.9). This figure is 13% for the low-income group, with one-fourth of the households in this categoryspending over 18% , and one-tenth over 25% of their monthly income on energy purchases (Fig. 9).High-income households spend an average of only 4% of their income on energy despite the fact thatthey consume nearly twice as much energy overall, and 16 times as much electricity, as households inthe low-income group (Figs. 8 and 9).

CONCLUSIONS AND POLICY RECOMMENDATIONS

In the years ahead, residential sector energy consumption in Cebu City could un dergo substantialchange in both qualitative and quantitative terms. A cooking fuel transition from traditional biomassfuels to kerosene and LPG has reduced the percentage of households using the former from over 90%in 1960 to 40% by 1 990 (see Fig. 3). However, this transition has not proceeded as far or as fast asthat experienc ed in other Asian cities,34,.4 and absolute levels of woo dfuel consumption in Cebu Cityare as high today as they were 30 years ago.

Continued high rates of urban population grow th combined with persistent inequalities in incomedistribution could keep residential fuelwood demand at current levels or higher for some time to come.The popularity of charcoal among even high-income consumers suggests that demand for this fuel willalso remain high. Energy and environmental planners in Cebu should w ork on the assumption thatwoo dfuel deman d will remain strong, and then redesign current regulations and policies in order toencourage greater wo odfuel production on private lands. Our own research refutes the widely-heldperception that urban woodfuel demand is a primary cause of deforestation on the is1and.t Instead,weve found that urban woodfuel markets are one of the major reasons for the relative success andwidespread adoption of private reforestation and agroforestry practices in rural areas of the province,and that the great bulk of woo dfuel production is occurring on a sustainable basis.*,*

Potential exists for improving the end-use efficiencies of fuelwo od and charcoa l stoves in urbanhouse holds, and for increasing conversion efficiencies of charcoal-mak ing in rural areas. At present,45% of the fuelwood stoves and 2 1% of the charcoal stoves in use in Cebu are home-made, rangingfrom crude three-stone arrangemen ts to fairly elaborate designs fashioned from scrap metal and tin. Aprogra m to train and finance local artisans in the design and production of fuel-efficient and inexpensivefuelwood and charcoal cookstoves could result in energy savings, reduced hou sehold fuel expenditures,and reductions in indoor and local air pollution.

Subsidizing kerosene and/or LPG in order to lessen the environmental impact associated with wood-fuel harvest should not be viewed as a serious policy op tion for reasons just mentioned. Subsidizingthese fuels to enable low-income households to use them is also not recommended since other factors

25 -3 I20E

g157 .a 105 j0: I I 1 I20,000

Monthly income range, in Pesos (P25 = $1)Fig. 9. Percentage of monthly household income spent on energy purchase s, Cebu City, 1992.

i-Over 90% of Cebus original forest cover was remove d before 1900 for timber and as a result of agricultural expansion. Sincethen, most fuelwood production has come from intensively-managed woodlots, agroforestry systems, coconut plantations andtree/shrub fallow areas (see Refs. 20 and 21 ).


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186 Terrence G. Bensel and Elizabeth M. Remedio

besides fuel price, such as stove costs, taste preferences and issues of safety, are more important inpreventing their wider use. If speeding-up the fuel-switching transition from biomass to kerosene orLP G is deemed desirable for reasons of equity or for reducing indoor air pollution, then emphasis shouldbe placed on easing the burden of equipment costs, perhaps through stove dissemination programs, aswell as on educating residents on the safe use of these fuels. Even in the absence of direct governmen tintervention, current trends in urbanization and income growth in Cebu favors more widespread use ofkerosene and LPG as household cooking fuels.Electricity accounts for 20.7% of delivered energy and 50.5% of useful energy consumption in theresidential sector of Cebu City. Electricity is used primarily for lighting and a few major appliances,notably refrigerators, color televisions, washing machines, air conditioners, and electric fans. Residentialsector electricity deman d in Cebu is growing faster than the national average, and is still quite far fromreaching a saturation point. Electric power shortages have been a hindrance to economic expansion inthe province, prompting the Philippine government to undertake projects to interconnect Cebus electricpower grid with geothermal power plants on the islands of Leyte and Negros. While these will improvepower supply, demandside efficiency improvements in residential electricity use should also be lookedinto as a serious option for ensuring adequate availability of power in the future.Acknowledgements-This research was supported in part by the Philippine Department of Energy - Non Conventional ResourcesDivision, the FAO - Regional Wood Energy Development Programm e in Asia, and the Winrock International -ForestrylFuelwood Research and Development Project. The lead author was supported by a Fulbright Research Fellowship andby a NASA Training Grant in Earth Systems Science. We wish to thank Robert Harriss, Mike Maniates and an anonymousreferee for helpful comments and suggestions.

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