Fuel switching in slum and non-slum households in urban Indiaby Sohail Ahmad, Jose A. Puppim de Oliveira

Journal of Cleaner Production

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Accepted Manuscript

Fuel Switching in Slum and Non-slum Households in Urban India

Sohail Ahmad, Jose A. Puppim de Oliveira

PII: S0959-6526(15)00076-1

DOI: 10.1016/j.jclepro.2015.01.072

Reference: JCLP 5149

To appear in: Journal of Cleaner Production

Received Date: 4 April 2014

Revised Date: 21 January 2015

Accepted Date: 21 January 2015

Please cite this article as: Ahmad S, Puppim de Oliveira JA, Fuel Switching in Slum and Non-slum

Households in Urban India, Journal of Cleaner Production (2015), doi: 10.1016/j.jclepro.2015.01.072.

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Fuel Switching in Slum and Non-slum Households in Urban India

Ahmad, Sohaila, b, 1 and Puppim de Oliveira, Jose A.a a United Nations University Institute for the Advanced Study of Sustainability (UNU-IAS) 5–53–70 Jingumae, Shibuya-ku, Tokyo 150-8925 Japan b Graduate School of Decision Science and Technology, Tokyo Institute of Technology, Tokyo, Japan

Abstract

Improving access to modern fuels is essential in developing countries in reducing adverse human health and environmental impacts caused by traditional fuels. Fuels use in developing countries is heterogeneous across households. This paper estimates drivers of fuel switching in non-slum and slum households in urban India, using a discrete choice model on a nationally representative micro data. The choices considered are three categories of cooking fuels: traditional – firewood, dung, crop residue and coal/charcoal; modern – kerosene and liquefied petroleum gas (LPG); and mixed fuels. The results suggest that the patterns of fuels use are consistent with the energy ladder theory in urban India. In addition to income, the major determinants of modern fuels uptake are fuels prices, access to electricity and supply water, and education attainment. The increasing price of LPG affects the low-income non-slum and the high-income slum households negatively. The analyses make a strong case for applying differential subsidies on modern fuels employing multidimensional aspects of poverty. Moreover, there is a need for partial diversion of existing fuels subsidies on improving physical and social capitals, which will result in uptake of modern fuels, particularly among disadvantaged communities.

Keywords: cooking energy, fuel switching, LPG, slum, India 1 Corresponding Author: (Present Address) D92, Second Floor, Shaheen Bagh, Jamia Nagar, New Delhi 110 025 India

Tel: +91 9968100608 E-mail: architectsohail@gmail.com

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ACCEPTED MANUSCRIPT 2 1. Introduction

Modern fuels – kerosene and liquefied petroleum gas (LPG) – are the major share (over 65%) of cooking energy in urban1 India. However, a large number of households, mostly disadvantaged, such as low-income and slum2 dwellers, still use traditional fuels – firewood, dung, crop residue, coal or charcoal. In comparison to modern fuels, traditional fuels adversely affect local indoor environment, which often result in poor health outcomes, particularly among women and children (de Koning et al., 1985; Holdren et al., 2000; Jerneck and Olsson, 2013; McMichael et al., 2000; Smith, 1993). The use of traditional fuels is thermally inefficient and diverts substantial fuel carbon to product of incomplete combustion, whose energy commitment per meal is high (Smith et al., 2000). It also depletes forest covers, as much of the firewood tends to come from illegal logging (Gautam and Herat, 2000), accentuating climate change and biodiversity loss. Fuel switching has several benefits, thus an example of ‘development with cobenefits’ (Puppim de Oliveira, 2013; Smith and Haigler, 2008).

The household fuel choices depend upon three factors. The first is availability and access to fuels, the second is affordability, as determined by household income, and the third is policy options available, such as prices, subsidies, and taxes. Some of these factors are aggravated with spatial location of the household. In rural India, for instance, freely available traditional fuels and poor access to modern fuels discourage the use of LPG or kerosene as primary cooking fuel, even among high-income households. Similarly, slum dwellers largely use traditional fuels because of inadequate access to modern fuels and poor socio-economic conditions. Thus, specific conditions influence domestic energy patterns. Previous studies focus on urban and rural households, but silent about slum dwellers. This was the motivation to investigate similarity (or difference) in domestic energy patterns and switching factors between slum and non-slum households in urban areas. The large size of slum dwellers, about 65 million (17.2% of urban

Indian), provide further impetus for such analyses (NBO, 2010). Thus, evidence-based interventions in slums can contribute to the environmental sustainability and improve quality of life, an important target under the Millennium Development Goals (Moreno, 2003).

The major contribution of this paper is to bring forth debates of cooking fuels switching of slum dwellers in the literature and practice. This study analyses the intra-urban differences among the different urban residents (slum and non-slum). Earlier studies on fuel shifting have focused mostly in urban or rural areas, or a comparison of both (Farsi et al., 2007; Heltberg, 2004; Rao and Reddy, 2007) , but hardly any study has attempted to understand the large intra urban differences among different urban areas, which is important for policy design for transition to modern fuels in all urban households. Since the socio-economic characteristics vary significantly between different urban inhabitants (Table 1), identical policy interventions may not work effectively for all. Another contribution of this study is establishing linkage between energy security and multidimensional aspects of urban deprivations. This study recognizes multiple cooking fuels used by the household and not limit to primary (or secondary) cooking fuel as