2.1.1 Poverty
people living in poverty pay a higher price per
unit of energy services than do the rich
Poverty is indisputably among the worlds largest, most
urgent and most fundamental issues. Despite this, poverty has received scant
attention from an energy perspective. This neglect of the poverty-energy nexus
is most surprising since energy is of vital importance to the satisfaction of
basic needs, particularly nutrition and health.
A large proportion of humanity does not enjoy the benefits that
modern energy sources and devices bring. About 2 billion people still cook using
traditional fuels, and 1.5-2 billion people are without access to electricity.
Energy services constitute a sizeable share of total household
expenditure in developing countries. People living in poverty pay a higher price
per unit of energy services than do the rich. They also spend more time
obtaining these energy services. The substitution of modern energy carriers and
more efficient energy conversion devices would confer sizeable gains in
purchasing power on poor urban households. Improvements in energy efficiency
have considerable potential to reduce poverty in all of its key dimensions, and
to facilitate development.
improvements in energy efficiency have
considerable potential to reduce poverty
Patterns of energy consumption among people living in poverty
tend to further worsen their misery. Firstly, because these people spend a
higher proportion of their income on energy, they are less likely to accumulate
the investments necessary to make use of less costly or higher quality energy
sources. Secondly, the use of traditional fuels has a negative impact on the
health of household members, especially when burned indoors without either a
proper stove to help control the generation of smoke, or a chimney to vent the
smoke outside.
Policies and programmes that directly address the creation of
opportunities for people living in poverty to improve the level and quality of
their energy services (by making more efficient use of commercial and
non-commercial energy and by shifting to higher quality energy carriers) will
allow the poor to enjoy both short-term and self-reinforcing long-term
improvements in their standard of living. By contrast, the standard
poverty-alleviation strategies - macro-economic growth, human capital
investment, and redistribution - do not focus on the energy-poverty nexus in
developing countries. If energy is left out of poverty elimination strategies,
such as those promised by the Copenhagen Social Summit, these strategies are
doomed to
fail.