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The economics of energy efficiency for the poor—a South African case study

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  • Spalding-Fecher, Randall
  • Clark, Alix
  • Davis, Mark
  • Simmonds, Gillian

Abstract

South Africa’s Reconstruction and Development Programme set ambitious goals for providing basic services to all, including housing and electrification. More efficient use of energy has the potential to socially and politically support these goals, particularly when it is targeted at low-income communities lacking adequate energy services. This paper examines the economics of energy efficiency for the urban poor from the perspective of society, utilities and poor consumers, using five example programmes. While the five energy efficiency programmes generally have significant economic and environmental benefits from a social perspective, they may not be as attractive to utilities and consumers. Also examined are the policy options for overcoming the significant barriers to energy efficiency, and ways government can bridge the gap between what is good for society and what is good for the electricity industry.

Suggested Citation

  • Spalding-Fecher, Randall & Clark, Alix & Davis, Mark & Simmonds, Gillian, 2002. "The economics of energy efficiency for the poor—a South African case study," Energy, Elsevier, vol. 27(12), pages 1099-1117.
    • Handle: RePEc:eee:energy:v:27:y:2002:i:12:p:1099-1117
    DOI: 10.1016/S0360-5442(02)00081-6
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    3. Liu, Jingru & Sun, Xin & Lu, Bin & Zhang, Yunkun & Sun, Rui, 2016. "The life cycle rebound effect of air-conditioner consumption in China," Applied Energy, Elsevier, vol. 184(C), pages 1026-1032.
    4. Graeber, Bernhard & Spalding-Fecher, Randall & Gonah, Brian, 2005. "Optimising trans-national power generation and transmission investments: a Southern African example," Energy Policy, Elsevier, vol. 33(18), pages 2337-2349, December.
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    6. Márcio Macedo Da Costa & Claude Cohen & Roberto Schaeffer, 2007. "Social features of energy production and use in Brazil: Goals for a sustainable energy future," Natural Resources Forum, Blackwell Publishing, vol. 31(1), pages 11-20, February.
    7. Sousa, José Luís & Martins, António Gomes & Jorge, Humberto, 2013. "Dealing with the paradox of energy efficiency promotion by electric utilities," Energy, Elsevier, vol. 57(C), pages 251-258.
    8. Raman, P. & Ram, N.K. & Murali, J., 2014. "Improved test method for evaluation of bio-mass cook-stoves," Energy, Elsevier, vol. 71(C), pages 479-495.
    9. Tarekegn Mamo Legamo & Milan casny & Workalemahu Tasew, 2021. "Energy Expenditure and Fuel Choices among Households in the Sidama Region, Southern Ethiopia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(2), pages 315-324.
    10. Ebohon, Obas John & Ikeme, Anthony Jekwu, 2006. "Decomposition analysis of CO2 emission intensity between oil-producing and non-oil-producing sub-Saharan African countries," Energy Policy, Elsevier, vol. 34(18), pages 3599-3611, December.
    11. Ouyang, Jinlong & Long, Enshen & Hokao, Kazunori, 2010. "Rebound effect in Chinese household energy efficiency and solution for mitigating it," Energy, Elsevier, vol. 35(12), pages 5269-5276.
    12. Musango, Josephine K. & Brent, Alan C., 2011. "Assessing the sustainability of energy technological systems in Southern Africa: A review and way forward," Technology in Society, Elsevier, vol. 33(1), pages 145-155.
    13. Sehjpal, Ritika & Ramji, Aditya & Soni, Anmol & Kumar, Atul, 2014. "Going beyond incomes: Dimensions of cooking energy transitions in rural India," Energy, Elsevier, vol. 68(C), pages 470-477.
    14. Sathaye, Jayant & Murtishaw, Scott & Price, Lynn & Lefranc, Maurice & Roy, Joyashree & Winkler, Harald & Spalding-Fecher, Randall, 2004. "Multiproject baselines for evaluation of electric power projects," Energy Policy, Elsevier, vol. 32(11), pages 1303-1317, July.

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