Energy Efficiency and Conservation in the Developing World: by World Bank Group

By World Bank Group

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Extra resources for Energy Efficiency and Conservation in the Developing World: The World Bank's Role (A World Bank Policy Paper)

Sample text

Fortunately, there was ample scope for improvements. Insulation and other measures were applied to reduce space heating and air conditioning requirements. The wide use of household appliances meant a large market for more efficient electric motors, compressors, and other equipment. In transportation, existing technologies were applied to the production of new vehicles, with consequent improvements in fuel use. Also in the developed countries, the growing demand for many energy-using consumer and producer goods, as record numbers of young people entered the age of household formation, was met in part through consumer and producer goods that incorporated newer, more energy-efficient technologies.

First, many governments failed to pass on all of the increase in international energy prices to domestic producers and consumers. Second, in many countries a large part of total consumption was and is in the nonhousehold sectors, which are dominated by inefficient state enterprises and protected industries. Third, the subsidized publicly-owned monopoly enterprises supplying energy in cost-plus conditions did not provide a conducive environment for effective built-in incentives for high levels of efficiency.

This paper does not specifically address issues related to the efficiency with which traditional fuelsstraw, dung, wood, and charcoalwe gathered or produced and consumed. While many of the issues in the traditional energy sector are the same as those for modern fuelsincluding better management of supplies, interfuel substitution, energy demand management, and pricingthe solutions are different. The pricing issues in this paper focus on how to include the value of externalities in the market price rather than on simply whether to eliminate government subsidies.

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