Insights from an integrated systems perspective of household fuels and health in China H. Keith Florig Carnegie Mellon University Presented at the Workshop on Mitigation of Air Pollution and Climate Change in China Norwegian Academy of Science and Letters, Oslo, Norway October 17-19, 2004 1 “Co-benefits” and public policy goals Policy domain Climate change Why stop here? Actions Reduce GHG emissions Climate change & Reduce GHG & public health air pollution Public welfare Reduce GHG, disease, illiteracy, unemployment, deforestation, etc. 2 Macro & micro intervention Macro intervention Other stuff Macro driving forces Household fuels Household, societal, & environmental impacts Social welfare Micro intervention 3 Influence diagram for rural household fuels Rural capital supply, farmer credit Rural transportation infrastructure Urban wealth Trade WTO Rural nonfarm employment Appliance ownership Household labor burden Rural education policy Worker productivity Rural education Demand for agricultural products Family size Electricity price Health care policy Rural household wealth Agricultural productivity Agricultural policy & land tenure system Energy policy Rural energy infrastructure Floor space Space heating demand Fuel availability & price Soil quality Water quality Health care access Rural health status Cooking demand Stove emissions Stove/fuel technology Deforestation Water heating demand Nutrition PM exposure Air polln health impacts Smoking Stove/fuel preferences for functionality Climate forcing Tobacco 4 ads & taxes Income Effects on Energy Choices 5 Income index (1978 = 100) Relative per capita real rural income 600 500 2200 RMB 2000 median 400 300 200 100 0 1975 1980 1985 1990 1995 2000 Year 6 Employment in rural non-farm enterprises Rural non-farm employment millions 160 140 120 100 80 60 40 20 0 1975 1980 1985 1990 1995 2000 2005 Year 7 Percent Energy by Source Rural Energy Consumption by Income (World Bank 1996) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Dung Biogas Leaves and Grass Straw and stalks Firewood Charcoal Coal Kerosene 0-175 yuan 175-298 298-485 485-900 yuan yuan yuan 900+ yuan LPG Electricity Income (Adapted from Worldbank Energy Sector Management Assistance Program Report 183/96, "Energy for Rural Development in China: An Assessment Based on a Joint Chinese/ESMAP Study in Six Counties") 8 Commercial energy vs. income in rural China (Wang & Feng 2003) Average per capita rural net income is currently about 2000 RMB Net per capita income (Yuan) Proportion of commercial energy < RMB 2000 (below median) RMB 2000 – 4000 (“well off”) > RMB 4000 (“wealthy”) < 20% 20 - 50% > 50% From Wang and Feng, Renewable & Sustainable Energy Reviews, 7:545-552, 2003. 9 Appliance priorities in rural households 1. 2. 3. 4. 5. … Lighting Electric fan TV & radio Washing machine Refrigerator Electric cooking/heating 10 At the household level, cooking & heating choices are based on multiple attributes Fuel availability (e.g., central heating, piped gas unavailable in many areas). Economics: capital requirements, fuel price, fuel efficiency, household income, subsidies Functional ease: convenience, controllability, evenness in time and space (heating) Compatibility with traditional cooking styles Cleanliness of surfaces (soot settling) Health impacts (air pollution, safety, disease) 11 Other Income Effects 12 As wealth/income increases: Demand for energy services grows Access to health care improves Living space expands Persons per household declines Smoking prevalence declines, but heavy smokers smoke more Nutrition improves Education rises 13 Per capita net living space in rural areas (China Stat Yrbk 2001) Living space, sq. m. 30 25 20 15 10 5 0 1975 1980 1985 1990 1995 2000 Year 14 Dynamics 15 16 Time constants Atmospheric residence times of particulates & PICs (< month) vs. CO2 (centuries) Rural infrastructure construction, e.g., gas pipelines, roads (10-30 yrs) Rural non-farm employment doubling (~10 yrs) Rural real income doubling (~10 yrs) Rural housing construction/urbanization (~5%/yr) Permanent migration to cities (2% of rural pop/yr) Solid Æ gas/liquid fuels transition (10-20 yrs) Education of next generation (20 yrs) 17 A coalition of interested sectors 18 Household solid fuels as a commons problem Climate effects Health impacts beyond household Exacerbates rural-urban inequality Drains health care resources Less healthy labor market Lessens effectiveness of education Burdens social security system Damages ecosystems 19 Political economy of indoor air pollution Common stakeholder interest in rural residential solid fuels Public health Climate change Rural industry Agriculture Energy Other interested lobbies: -Education -Tobacco -Ecosystem protection 20 Rural investment options – which buys rural residents the most utility per RMB? Biogas digesters for cooking gas Education Industrial capital & micro-loans Convert grain fields to export crops Washing machine & refrigerator Health clinics Transportation infrastructure 21 Summary Best policy prescriptions to address household solid fuels problem depend on how broadly “co-benefits” are defined Mobilizing interventions for household solid fuels may require a broader coalition of stakeholders 22