UBC Theses and Dissertations

UBC Theses Logo

UBC Theses and Dissertations

Appropriate technology and the rural energy sector in South East Asian developing countries Subbakrishna, Nagendra 1988

Your browser doesn't seem to have a PDF viewer, please download the PDF to view this item.

Item Metadata

Download

Media
831-UBC_1988_A8_3 S92.pdf [ 5.46MB ]
Metadata
JSON: 831-1.0097836.json
JSON-LD: 831-1.0097836-ld.json
RDF/XML (Pretty): 831-1.0097836-rdf.xml
RDF/JSON: 831-1.0097836-rdf.json
Turtle: 831-1.0097836-turtle.txt
N-Triples: 831-1.0097836-rdf-ntriples.txt
Original Record: 831-1.0097836-source.json
Full Text
831-1.0097836-fulltext.txt
Citation
831-1.0097836.ris

Full Text

APPROPRIATE TECHNOLOGY AND THE RURAL ENERGY SECTOR IN SOUTH EAST ASIAN DEVELOPING COUNTRIES. By NAGENDRA SUBBAKRISHNA BSc [Hons.] Indian Institute of Technology, 1982 MSc Indian Institute of Technology, 1984 A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF SCIENCE IN THE FACULTY OF GRADUATE STUDIES (School of Community and Regional Planning) We accept this thesis as conforming to requirements Prof. B. Wiesman Mr. P. Bcxjthroyd Dr. P.N. Nerretz THE UNIVERSITY OF BRITISH COLUMBIA April 1988. (c?\ Nagendra Subbakrishna, 1988 In p r e s e n t i n g this thesis in part ia l f u l f i lmen t o f t he requ i remen ts fo r an a d v a n c e d d e g r e e at t h e Univers i ty o f Bri t ish C o l u m b i a , I agree that t h e Library shall m a k e it f reely avai lable fo r re ference a n d s tudy . I f u r the r agree that pe rmiss ion fo r ex tens ive c o p y i n g o f th is thesis fo r scholar ly pu rposes may be g r a n t e d b y the h e a d o f m y d e p a r t m e n t o r b y his o r her representa t ives . It is u n d e r s t o o d that c o p y i n g o r p u b l i c a t i o n o f th is thesis f o r f inancia l ga in shall n o t b e a l l o w e d w i t h o u t m y w r i t t e n p e r m i s s i o n . D e p a r t m e n t o f School of Conmunitv and Regional Planning T h e Un ivers i ty o f Brit ish C o l u m b i a 1956 M a i n M a l l Vancouve r , Canada V6T 1Y3 fL D a t e ' 9 \<\1?l i i ABSTRACT Given increasing p r o b l e m s in the availabil i ty, a f fordabi l i ty and del iverabi l i ty o f c o m m e r c i a l pr imary and secondary energy resources, c o u p l e d w i t h g r o w i n g m a c r o e c o n o m i c uncer ta int ies, the use o f renewab le , n o n - c o m m e r c i a l energy resources has b e e n act ively p r o m o t e d in rural areas o f d e v e l o p i n g coun t r ies . This, in add i t i on t o the fact that conven t i ona l , ' s ta te-o f - the-ar t ' e n e r g y ' facil i t ies present technica l p r o b l e m s , are inequ i tab le and pose po ten t ia l env i ronmen ta l hazards, has led t o proposa ls fo r ins t i tu t ing al ternat ive, in te rmed ia te o r ' a p p r o p r i a t e ' t echno log ies in rural se t t lements . This thesis ident i f ies techn ica l , e c o n o m i c , social , cu l tura l and inst i tu t ional barriers t o the i n t r o d u c t i o n o f in te rmed ia te o r ' app ropr ia te ' t e c h n o l o g i e s in rural areas. The cases o f solar and biogas t e c h n o l o g i e s in Korea, Malaysia, Papua N e w Guinea the Phi l ippines and Thai land are cons ide red . Policy and p lann ing process r e c o m m e n d a t i o n s are m a d e o n the roles o f g o v e r n m e n t , vo lun ta ry aid-agencies and t h e rural user, t o o v e r c o m e the obstac les t o i m p l e m e n t i n g these techno log ies . These r e c o m m e n d a t i o n s cover the m i c r o (vi l lage) and macro ( reg ional and nat ional) levels over t w o t i m e hor izons, and stress the n e e d fo r a c o m p r e h e n s i v e approach t o d iscern ing rural needs , f o l l o w e d by in tegra ted t e c h n o l o g y d i f fus ion t h r o u g h ef fect ive p r o g r a m and p ro jec t i m p l e m e n t a t i o n . In a d d i t i o n , this thesis ident i f ies the n e e d fo r a c o n t i n u o u s co l l ec t i on o f i n f o r m a t i o n o n rural s o c i o - e c o n o m i c c o n d i t i o n s and po ten t ia l f o r rural in ter fue l subs t i t u t i on and finally, r e c o m m e n d s research in to i m p r o v i n g techn ica l ef f ic iencies o f al ternat ive ene rgy techno log ies such as solar and b iogas. Al ternat ive or i n te rmed ia te energy t e c h n o l o g i e s such as solar and biogas can play an i m p o r t a n t role in a u g m e n t i n g rural energy supply . Unless steps are taken t o r e m o v e the ident i f ied barriers to i m p l e m e n t a t i o n in fu tu re t e c h n o l o g y d i f fus ion e f for ts , this po ten t ia l w i l l n o t be real ized. Policy and p lann ing process r e c o m m e n d a t i o n s made in this thesis present means t h r o u g h w h i c h these barriers c o u l d be r e m o v e d . . i i i TABLE O F C O N T E N T S ABSTRACT i i LIST O F FIGURES v i LIST O F TABLES V A C K N O W L E D G E M E N T S v i i CHAPTER I: I N T R O D U C T I O N 1 A. Hypothesis, Objectives, Scope 1 B. Rationale 2 C. Organization 4 D. Method 5 CHAPTER II: T H E SETTING: Macro energy problems 7 2.1 Availability, Affordability and Deliverability of commercial energy 7 2.2 Macroeconomic uncertainties 9 2.2.7 The debt crisis :3 2.2.2 Trade deficits and shortages in foreign exchange : 13 2.2.3 Unemployment and underemployment 14 2.3 Deficiencies of modern energy technologies 17 2.3.1 Questionable technological efficiency 19 2.3.2 Inadequate distributional equity 21 2.3.3 Potential for impacts on the biophysical environment 22 2.4 The rural energy scene 22 2.4.7 Types of energy 22 2.4.2 Energy and rural income 25 2.5 Appropriate technology at a conceptual level • 28 2.6 "Appropriate software" — 29 CHAPTER HI: THE T E C H N O L O G I E S 32 3.1 Solar Technologies • ; 32 3.2 Biogas Technologies 36 CHAPTER IV: SOLAR A N D BIOGAS E C O N O M I C S 40 4.1 The theory 40 4.7.7 What is the perspective used in valuing benefits and costs? 42 4.7.2 What type of project comparisons are used? • — 43 4.7.3 What time horizons are considered? 43 4.7.4 How are benefits and costs valued? 44 4.7.5 What type of costing concerns the analyst? 44 4.7.6 What decision criteria are used? 45 4.2 The Caveats 51 4.2.7 The Assumptions of the analysis 51 4.2.2 The socio-cultural environment 53 CHAPTER V: THE PROBLEMS OF SOLAR AND BIOGAS TECHNOLOGIES 57 5.1 Technical and Economic appropriateness — 57 5.7.7 Biogas digesters 58 5.7.2 Solar Technologies • 60 5.2 Social and Cultural appropriateness r 63 CHAPTER VI: THE ROLE OF GOVERNMENT . 67 6.1 The Institutions . 68 6.7.7 Korea . . ; 70 6.7.2 Papua New Guinea . 70 6.7.3 Thailand 1 71 6.7.4 The Philippines . 72 6.7.5 Malaysia 75 6.2 Material Support ; 76 6.2.7 Korea _ . 76 6.2.2 Thailand 79 6.2.3 Malaysia ; _ . ; QQ 6.2.4 The Philippines . gg 6.3 Conclusions regarding the role of government ', . . g2 CHAPTER VII; CONCLUSIONS AND RECOMMENDATIONS • 83 7.1 Conceptual framework 85 7.2 The short-term 85 7.2.7 The micro-level : 85 7.2.2 The Macro-level : • 90 7.3 The medium term 91 7.3.7 The Micro-level • 92 7.3.2 The Macro-level • 93 7.4 Research and development needs 93 Notes 96 References • 99 Appendix Two cases in India 107 107 V LIST O F TABLES I Conventional energy technologies and their impacts on the biophysical environment 23 II Rural energy sources and end-uses in the Asia-Pacific 24 III Korea: Cooking fuel type and cost for a five person household 27 IV Passive solar technology in the Asia-Pacific 34 V Active solar energy systems on the US Market 35 VI Active solar technologies in the Asia-Pacific 35 VII Types of biogas digesters 38 VIII Distribution of dry style household plants in Korea 39 IX The answers to six questions in a benefit-cost analysis 41 X An example of a benefit-cost analysis. The case of the Maya farm enterprise, The Philippines 47 XI Some attempts at benefit-cost analyses for biogas systems 50 XII The importance of social influences in benefit-cost analyses • 54 XIII Technical appropriateness of biogas technologies 61 XIV Economic appropriateness of solar and biogas technologies 61 XV Social and Cultural appropriateness of solar and biogas technologies /66 XVI Institutional arrangements for central planning and coordination: all energy sources 68 XVII Government institutions for solar and biogas techno! ogies 7- 69 XVIII Government institutions, material support and technology dissemination 77 XIX Summary of findings. 84 XX Summary of proposed policy objectives. 86 XXI A proposed policy process 88 vi LIST O F FIGURES 1 Energy availabil i ty vs. Requ i rement . 10 (a) Korea ; 10 (b) Malaysia - 10 (c) The Phi l ippines 10 (d) Papua N e w Gu inea 10 (e) Thai land 11 2 Pe t ro leum and p e t r o l e u m p r o d u c t i m p o r t s : Asia-Pacific. 12 3 N e t external deb t : Asia-Pacific. • 15 4 Trade def ic i ts : Asia-Pacific. 15 5 Change in fo re ign reserves. 16 6 Nat iona l and rural u n e m p l o y m e n t in the Asia-Pacific: Malaysia, Thai land, Phi l ippines, Korea. 1 8 7 Phi l ippines: Energy- Income pro f i le . 26 8 Thai land: Rural Energy- Income pro f i le . 26 9 Logist ics o f t he Maya farm enterpr ise . . 7 4 vii ACKNOWLEDGEMENTS I am grateful for the constant encouragement of my mentor and guide Prof. Peter Nemetz; Prof. Brahm Wiesman, for keeping me on track and offering helpful suggestions along the way; Prof. Peter Boothroyd, for stimulating creativity; Prof. Julia Gardner for sitting out my ramblings on appropriate technology and to the rest of the faculty of SCARP-UBC for making the mold. Eclectic warfare with my colleagues and friends, Erasmus [Raz] Morah, Dan Harrington, Bill Rorabeck, Mike Beazley, David Turner, Lijian Chen, Shaun Dyler, Lorraine Berg, Lynn Cuilbault, Aileen Murphy and Leslie Rogers, helped in the sanity retention process. My best wishes are with them. I am grateful to the Donner Canadian Foundation and The Mellon Foundation for making my stay here a possibility. Finally, my parents, whose long-distance encouragement kept me going, have my respect and deepest gratitude. I write this thesis for them. 1 CHAPTER I; INTRODUCTION A. Hypothesis, Objectives and Scope M y hypothes is is that , g iven present c o n d i t i o n s in d e v e l o p i n g coun t r i es , certain po ten t ia l l y ' app ropr ia te ' energy techno log ies have had l i t t le success in amel io ra t ing the less than ideal energy c o n d i t i o n o f rural areas in d e v e l o p i n g count r ies . This apparent inappropr ia teness is d u e t o e c o n o m i c , techn ica l , socia l , cul tural and inst i tu t ional factors. M y s tudy is based o n the f o l l o w i n g assumpt ions : a. Bo th pr imary and secondary commerc ia l , n o n - r e n e w a b l e energy resources are una f fo rdab le , unavai lable and n o t del iverable t o rural dwel lers in d e v e l o p i n g count r ies . b. D e v e l o p i n g count r ies in general are faced w i t h increasing uncer ta int ies in thei r m a c r o - e c o n o m i c e n v i r o n m e n t s w h i c h affect the i r rel iance o n i m p o r t e d fuels. c. C o n v e n t i o n a l energy techno log ies o f t e n have irreversible negat ive impacts o n the b iophys ica l e n v i r o n m e n t . These assumpt ions have led t o the active p r o m o t i o n o f ' app ropr ia te ' t e c h n o l o g i e s in d e v e l o p i n g count r ies , part icular ly t o aid in the rural d e v e l o p m e n t process. The pu rpose o f this thesis is t o ident i fy the social , cu l tura l and ins t i tu t iona l factors that have t o be c o n s i d e r e d in fu tu re ef for ts t o i m p l e m e n t solar and biogas t e c h n o l o g i e s in d e v e l o p i n g coun t r ies . The thesis draws u p o n exper iences o f se lected coun t r ies : Korea, Malaysia, Papua N e w Guinea, Thai land and the Phi l ippines. I n f o r m a t i o n f r o m India is also re fer red t o in a f e w instances. Specif ic ob jec t ives in this s tudy are t h r e e - f o l d : a. To d e v e l o p the a b o v e assumpt ions fu r the r and val idate t h e m based o n an analysis o f the cur ren t energy s i tua t ion . b. T o examine the e c o n o m i c , technica l , social , cul tural and inst i tu t ional barriers t o b o t h d i f fus ion and ut i l izat ion o f appropr ia te t e c h n o l o g i e s and , f inal ly 2 c. To propose policy and process options to remedy the rural energy situation through a coexistence of both 'hard' and 'soft' technologies and through an integrated policy and process approach to technology diffusion taking into account the actors, roles and relationships involved. B. R a t i o n a l e Solar and biogas technologies have often been referred to, in the literature, as "appropriate energy technologies". Academic disciplines have differing views on appropriate technology per-se. Some dismiss the infatuation with them by claiming, quite justifiably, that they are just reinvented wheels [Toffler 1980, Naisbitt 1986]. Others reject the concept by arguing the case for modernity based on continuous societal evolution. Some allude to these technologies as being monetarily infeasible whims. Ardent environmentalists and deep ecologists however, remain convinced that spaceship earth is headed towards an irreversible catastrophe, given our romance with all things big and use the environmental carrying capacity argument to support their hypothesis. They tend to align with the Schumacher influenced 'Small is beautiful' philosophy [Schumacher 1973). Others such as Vandenburg [1986, 1-4] stress the need for such technologies based on an analysis of the structure of technology and its relation to society and argue that reinvented wheels are part of progress. Disciples of the Schumacher philosophy furthermore, tend to refute the 'whim' label put forth by some economists by arguing that there are employment opportunities in the field of appropriate technologies both in terms of direct production and human participation. in addition to contributing to the inter-disciplinary debate on 'appropriate' technology, I see three major related factors supporting further study of this subject: a. the oil-shocks of 1973 and 1979 and the potential for their recurrence in the near future with detrimental economic and social effects in developing countries. b. the potential role that appropriate energy technologies could play in meeting the basic 3 needs o f rural dwel lers in d e v e l o p i n g count r ies , in te r l inked w i t h c. t he def ic iencies that , in m y o p i n i o n , have p lagued m o d e r n energy techno log ies r ight f r o m the t ime o f the i r a d o p t i o n by d e v e l o p i n g count r ies . Each of these are c o n s i d e r e d b e l o w . a. O v e r the past decade , a vast a m o u n t o f l i terature has b e e n c o m p i l e d o n the p r o m i s e o f al ternat ive energy t e c h n o l o g i e s fo r m e e t i n g rural energy requ i rements in d e v e l o p i n g coun t r ies . The oi l shocks o f 1973 and 1979 w e r e in part respons ib le fo r r e n e w e d research e f for ts in to the techn ica l and e c o n o m i c viabi l i t ies o f these al ternat ive t e c h n o l o g i e s , part icular ly solar and b iogas. However , ins t i tu t ional , social and cul tural i m p e d i m e n t s t o i m p l e m e n t i n g these t e c h n o l o g i e s , if cons ide red at all, w e r e re legated t o a s e c o n d place. In fact , i m p l e m e n t a t i o n ob jec t i ves of past p rograms and pro jec ts a imed at d isseminat ing solar and biogas techno log ies in the count r ies se lec ted, w e r e o f t e n solely der ived f r o m analyses o f techn ica l and e c o n o m i c viabi l i t ies. Insuf f ic ient emphasis was p laced o n social and cul tura l variables in art iculat ing strategies t o i m p l e m e n t these techno log ies , lead ing t o a less than ideal s i tuat ion in the i r e m p l a c e m e n t , acceptance and subsequen t u t i l i za t ion. b. App rop r i a te t e c h n o l o g i e s are n o t s o m e t h i n g new. T e c h n o l o g y that satisfies the n e e d of an ind iv idual cou ld i n d e e d be t e r m e d appropr ia te . The d i l e m m a is that as needs b e c o m e m o r e and m o r e c o m p l e x so ' does t e c h n o l o g y . A way o u t o f t he d i l e m m a is t o v i e w t e c h n o l o g y as a marr iage b e t w e e n f o r m and f u n c t i o n . • Thus appropr ia te t e c h n o l o g i e s , such as solar and biogas, have a basic f o r m t o serve a basic f u n c t i o n and in d o i n g so, satisfies a basic n e e d [Singer 1977 ] . The i m p o r t a n c e of satisfying a basic n e e d t h r o u g h the use o f a techno log ica l f o r m unders tandab le by its end-users is a major fac tor in the cho ice o f appropr ia te t e c h n o l o g y in the energy sec tor as p r o p o s e d in this thesis. Fur thermore , by ins t i tu t ing small-scale solar and biogas t e c h n o l o g i e s w h i c h use renewab le inputs , basic needs are satisfiable in a m o r e sustainable o r regenerat ive manner . The a d o p t i o n o f such t e c h n o l o g i e s thus appears rat ional in the c o n t e x t o f d e v e l o p i n g count r ies . c. Present po l icy dea l ing w i t h the use o f conven t iona l ' m e g a ' energy techno log ies ignores 4 the fact tha t these techno log ies o f t e n : 1. ut i l ize resource inputs w h i c h are n o n - r e n e w a b l e ; 2. rely o n def ic ient secondary energy d i s t r i bu t ion systems; 3 . are inef f ic ient , in te rms o f the resource i n p u t t o energy o u t p u t rat io; and 4. have irreversible impacts o n the b iophys ica l e n v i r o n m e n t . A l t h o u g h solar and b iogas t e c h n o l o g i e s w e r e i n t r o d u c e d in to South-East Asia in t h e p o s t W o r l d W a r II era, the i r d ispers ion was main ly sporadic . It was in the early 1960's tha t the i r po ten t ia l f irst came t o p r o m i n e n c e as a d i rec t result o f t h e o i l -shocks. Planned ef for ts by g o v e r n m e n t s t o di f fuse these t e c h n o l o g i e s w e r e also in i t ia ted a round the same t i m e . Present i nves tmen t in to al ternat ive energy t e c h n o l o g y p r o g r a m s is abou t US$100 mi l l ion in the reg ion and is part ly f inanced by mul t i la tera l l end ing ins t i tu t ions . In a d d i t i o n , these ef for ts are somet imes o p e r a t e d by vo lun tary aid agencies i n d e p e n d e n t of g o v e r n m e n t p rograms and pro jec ts . Unless c o m p r e h e n s i v e s tudies are under taken t o art iculate barriers t o e f fec t ive i m p l e m e n t a t i o n and ut i l izat ion o f these t e c h n o l o g i e s , b o t h h u m a n and f inancial resources in this e f fo r t wi l l be inadequate ly u t i l i zed. Finally, an extensive l i terature rev iew indicates that there is n o c o m p r e h e n s i v e treat ise that a t tempts t o p u t t o g e t h e r the d i f fe rent forces at play that can act as barriers t o t h e d i f fus ion o f solar and b iogas t e c h n o l o g i e s in less d e v e l o p e d coun t r ies [ L D C s ] . This thesis is a s tep in that d i r e c t i o n . I n f o r m a t i o n genera ted , the re fo re , s h o u l d be useful t o po l i cy makers in the Asia-Pacific reg ion , the private sector , vo lun tary a id-agencies and the rural d e v e l o p m e n t p rac t i t ioner in terested in faci l i tat ing the process of change . C. Organization The thesis is o rgan ized in to six parts: 1. Chap te r II examines the Asian e c o n o m i c and social set t ing and t h e reasons f o r t h e ins t i tu t ion o f al ternat ive energy techno log ies : the de te r io ra t ing m a c r o - e c o n o m i c c l imate and 5 the deficiencies of modern energy generation technologies in the selected countries. The chapter discusses the types of energy both available to and affordable by rural dwellers using energy expenditure profiles of rural dwellers. In addition, certain conceptual advantages of alternative or small-scale energy technologies are discussed, together with the social and institutional factors effecting the adoption of these technologies. 2 . Chapter III reviews two technological forms solar and biogas, their modifications and advantages, and the different forms of solar and biogas technologies that presently exist in the Asia-Pacific region. 3. Chapter IV discusses the economics of both solar and biogas technologies drawing on the Korean and Filipino experience as well as experience outside the selected countries, in India. The chapter also points out some drawbacks in benefit-cost analyses carried out to date. 4. Chapter V elaborates on end-user problems with solar and biogas technologies from three perspectives -. the economic/technical, social and institutional - by testing certain prestated conditions derived from the literature. 5. Chapter VI examines the adequacy of existing government policies and programs to facilitate the the diffusion of solar and biogas technologies to rural dwellers in the countries selected. 6 . Chapter VII generates a set of recommendations for future efforts to disseminate these technologies in the Asia-Pacific region from both the macro and micro village levels taking into account the socio-economic and institutional problems discussed in chapters IV and V. D. Method a. Data Col lect ion was done through an extensive literature review using the facilities of the UBC library system. In addition a computer search was carried out on ENERCYLINE in the DIALOG on-line network. Numerical data were gathered from annual reports of the United Nations Economic and Social Council for Asia and the Pacific [UNESCAP], the Asian Development Bank [ADB], the International Bank for Reconstruction and Development [IBRD], 6 the International Labor organization [ILO] and reports from the Resource Systems Institute of the East-West Center, University of Hawaii. In addition, a limited number of questionnaires pertaining to the Indian National Biogas program, were sent to key informants in India and the United States. Results from the questionnaire are described in the appendix and referred to in the main body of the text. b. Analysis of numerical data was done using Pascal programs on the UBC mainframe Michigan Terminal system [MTS]. In addition, LOTUS 123 and D-BASE III packages were used in sorting data and representing it in graphical form. 7 CHAPTER II: THE SETTING: MACRO ENERGY PROBLEMS This chapter discusses some of t he reasons for the ins t i tu t ion o f al ternat ive and small-scale energy t e c h n o l o g i e s in rural areas o f the count r ies se lec ted and d e v e l o p i n g count r ies in genera l . In essence, t h e advantage of ins t i tu t ing appropr ia te energy t e c h n o l o g y at t he rural level appears t o lie in the fact that d e v e l o p i n g count r ies , i nc lud ing those in the Asia-Pacific, have p r o b l e m s in the availabil i ty, a f fordabi l i ty and del iverabi l i ty o f conven t i ona l energy resources, t h e y have p r o b l e m s associated w i t h thei r m a c r o e c o n o m i c e n v i r o n m e n t and finally, p r o b l e m s caused by opera t iona l def ic ienc ies of m o d e r n , large-scale energy genera t i on t e c h n o l o g i e s and faci l i t ies. These th ree , e i ther i n d e p e n d e n t l y o r toge the r , cons t i t u te an energy p r o b l e m f r o m a ' m a c r o ' perspect ive . Approp r ia te t e c h n o l o g y , as d e f i n e d in this thesis, is an 'appropr ia te ' m ix tu re o f hardware and so f tware . Hardware is the physical f o r m , o p t i m a l f o r sat isfying the des i red f u n c t i o n , whereas so f tware is the i n f o r m a t i o n and o the r s u p p o r t service requ i remen ts f o r these techno log ies . Sof tware , as can be seen, canno t f unc t i on i n d e p e n d e n t o f t he hardware whereas , at present , hardware appears t o f u n c t i o n w i t h o u t so f tware . A r g u m e n t s f o r the ins t i tu t ion o f small-scale and m o r e ' h u m a n ' t e c h n o l o g i e s have b e e n p u t fo r th and s o m e perspect ives o f this a r g u m e n t are e x a m i n e d in this thesis. 2.1 Availability, Affordability and Deliverability of Commercial energy In th ree w o r d s , energy p r o b l e m s fac ing any d e v e l o p i n g c o u n t r y lie in the availabil i ty, a f fordabi l i ty and del iverabi l i ty o f b o t h pr imary and secondary c o m m e r c i a l energy resources such as p e t r o l e u m and o t h e r c rude oi l der ivat ives. The q u e s t i o n o f availabil i ty, w h e n dea l ing w i t h pr imary, c o m m e r c i a l and n o n - r e n e w a b l e energy resources asks: 1. H o w m u c h o f t h e conven t iona l energy resource is available locally? 8 2. H o w m u c h is der ived e x o g e n o u s l y o r impor ted? In the se lected count r ies o f t he Asia-Pacific, a larger p r o p o r t i o n o f conven t iona l energy resources necessary fo r c o n s u m p t i o n is i m p o r t e d ( 1 ) . The af fordabi l i ty o f secondary , c o m m e r c i a l and n o n - r e n e w a b l e energy resources, has t o d o w i t h the issue of h o w af fordable these resources are, g iven present market cond i t i ons and p ro jec t ions o f fu tu re supply , d e m a n d and pr ice pat terns. This issue is part icular ly crucial t o the l o w i n c o m e rural dwe l le r in rural Asia. Regulatory in te rven t ion in the energy marketp lace in the f o r m of subsid ies(2) , and taxes(3) are w h a t mainta in the pr ice reg imes of energy resources t o b o t h u rban rural dwel lers . Taxat ion o n commerc ia l secondary non - renewab le resources have, in a d d i t i o n , ac ted t o curb c o n s u m p t i o n part icularly by rural dwel lers in the Asia-Pacific, w i t h the resul t that there is a w i d e n i n g d i f fe rence b e t w e e n per-cap i ta c o n s u m p t i o n and requ i rements o f commerc ia l , n o n - r e n e w a b l e and secondary energy in rural Asia [Harr ison 1983, IBRD 1981] . Given a short fa l l in the availabil ity o f pr imary and secondary c o m m e r c i a l and non - renewab le energy resources such as p e t r o l e u m and o t h e r derivat ives o f c rude o i l , it is no t unreal ist ic t o expec t an increase in the level o f taxat ion that g o v e r n m e n t s can be e x p e c t e d t o impose w h i c h c o u l d mani fest itself in pr ice increases at t he p o i n t o f f inal c o n s u m p t i o n ^ ) . The urban dwe l le r may c o p e w i t h this increase, less so the rural dwe l le r w h o s e i n c o m e o f t e n d o e s n o t increase as rapidly as general in f la t ion. The issue of del iverabi l i ty concerns itself w i t h t h e adequacy o f energy supply in f rastructure fo r m e e t i n g energy d e m a n d such as o i l and gas p ipel ines and o t h e r f o rms o f energy t ranspor ta t ion . A br ief rev iew o f the W o r l d Bank's l i terature shows tha t a lmost all the count r ies se lected have inadequate in f rast ructure b o t h in terms of qual i ty as we l l as quant i t y [ IBRD 1979 1981 1983] . 9 In c o n n e c t i o n w i t h the issue of af fordabi l i ty , t he W o r l d Bank no tes that f o r m o r e than 6 0 % of less d e v e l o p e d count r ies even if t he supp ly o f c o n v e n t i o n a l energy resources d i d ma tch d e m a n d , t h e relative pr ice o f t he resource w o u l d place it b e y o n d the reach of m o r e than 4 0 % of rural dwel lers . Inadequacy in energy supp ly in f rast ructure, the re fo re , tends t o ref lect n o t o n l y the del iverabi l i ty o f t he resource b u t also its af fordabi l i ty . Aggregate p r imary and secondary commerc ia l ene rgy requ i remen ts are con t ras ted w i t h aggregate energy availabi l i ty in f igures 1a-1e. Figure 2 presents to ta l oi l impor t s by the count r ies in the thesis and gives an ind ica t ion o f t he p r o p o r t i o n o f energy impor ts t o i n d i g e n o u s availability. O i l impor t s are used as an ind icator , as in all the count r ies se lec ted o i l accounts fo r m o r e than 5 0 % of c o m m e r c i a l energy c o n s u m e d [ADB 1982] . It is ev iden t in all count r ies , w i t h t h e e x c e p t i o n o f Malaysia, that there is a ma jo r d i f fe rence b e t w e e n energy resources available and energy resources requ i red . 2.2 Macro-economic uncertainties D e v e l o p i n g coun t r i es in general are faced w i t h t r e m e n d o u s uncer ta in ty in the i r m a c r o - e c o n o m i c c l imates. These uncer ta int ies are fu r ther exacerba ted by three ma jor factors : 7. The debt crisis. 2. Trade deficits and shortages in foreign exchange. 3. Increasing rural unemployment and underemployment. As wi l l be seen, all t h ree are in ter re la ted. 2.2.7 The debt crisis The d e b t crisis const i tu tes a ser ious p r o b l e m in d e v e l o p i n g count r ies in genera l , especial ly those in t h e Asia-Pacific reg ion . Fig. 3 gives an idea o f t he net external d e b t of t he se lec ted count r ies in t h e Asia-Pacific reg ion . W h a t s h o u l d be n o t e d is s teep increases in the p e r i o d 1974-83. It can be h y p o t h e s i z e d that a ma jo r reason fo r th is increase in Fig. 1 Energy availability vs. requirements: Korea, Malaysia, Papua New Guinea, Philippines 1. a KOREA: Availability vs. Requirements Fig. l . c Philippines MBf*» OKDCAT l«*4 h-o lOTi lf73 t m Fig. l . b MALAYSIA Mvrw: CUE)CAT 1«*4 Fig. 1. d Papua New Guinea i m xwn D i D N i r — _ i * t * + KB*—- r*«_T*d 11 F i g . 1 Energy a v a i l a b i l i t y vs. requirements: Thailand FIGURE ie:ThailarKh Availability vs. Requirements ( S o u r c e : U X B 3 C A P 1984) ie 0 - f 1 1 1 1 1 1 1 ' r 1974- 1975 1976 1977 1976 1979 I 9 6 0 1981 1982 1983 CI A v a i l a b i l i t y +• R e q u i r e m e n t s FIQJREZ Petroleum/Pet,prods. Imports (source ADB 1985) 6 -5 -4 -2 -r n f f i r r i K n 7 / / I 1974 1975 1976 / /s / / / / / / S3 f_. / / / / / / / / J US \ x / / / / / / / / / ' / / / / / / • /s s\ /s /s X X X f x / / / / / / / / / • / / / / / / / / /\ /\ /s /s /\ /s X X S-* sx /js^ sx / / / / / / / / ' / / / / / / / x \x / \ \ x / \ sx / s sx / \ sx / s sx /Sr-SX I I T/tsT 1 / / / / / / / / / / / / / / s sx 1 1977 197B 1979 1980 1981 1982 1983 (S3 Malaysia Z?77X PNG Rs^j Ph i l ipp ines POsI Thailand 13 d e b t is c o r r e s p o n d i n g increases in w o r l d oi l -pr ices in t h e decade 1970-80 . It is in teres t ing t o n o t e that even an oi l - r ich c o u n t r y such as Indones ia has accumu la ted ser ious l o n g - t e r m d e b t because of an ob l i ga t i on t o d e v e l o p m e n t plans that w e r e t o have b e e n f inanced w i t h o i l -genera ted revenues. O t h e r plausible reasons f o r th is increase in d e b t inc lude an increase in general impor t s and resource m i s m a n a g e m e n t w i t h pressures f o r c o n s u m p t i o n f r o m increasing p o p u l a t i o n [Edelman 1978, Beers 1982, Viksnins 1979](5) . 2.2.2 Trade deficits and shortages in foreign exchange From t h e perspect ive of less d e v e l o p e d count r ies massive energy and t e c h n o l o g y impor t s , in the pursu i t o f conven t i ona l e c o n o m i c d e v e l o p m e n t and g r o w t h , o c c u r r e d in the pre 1973 'era o f cheap energy ' [Harr ison 1983, Edelman 1978] . in part respons ib le fo r fue l l ing these impor t s w e r e the dictates of nat ional and regional e c o n o m i c d e v e l o p m e n t m o d e l s o r ' b i g - b a n g ' theor ies [Fr iedman 1966, H i rschman 1978,1979] w h i c h stated tha t one way o f s t imu la t ing e c o n o m i c g r o w t h and industr ial act iv i ty was t h r o u g h the se t t ing up o f energy d e p e n d e n t industr ies and p r o d u c t i o n comp lexes . W i t h these c o m p l e x e s in hand and w i t h the pr ice o f energy increasing du r ing the decade 1970-80, the on ly way fo r less d e v e l o p e d count r ies t o c o n t i n u e i m p o r t - d e p e n d e n t p r o d u c t i o n in these c o m p l e x e s , was t o b o r r o w heavily f r o m b o t h pr ivate and mult i lateral f inancial ins t i tu t ions [Edelman 1978, Gri f f i th-Jones 1985] . These ins t i tu t ions f inanced in ject ions o f capital i n to d e v e l o p i n g coun t r ies in part , by recyc l ing Arab ' pe t rodo l l a rs ' w h i c h a ided in the f inanc ing o f these cont inua l ly increasing impor ts [Viksnins 1979] . A major p r o p o r t i o n o f ex terna l d e b t was accumu la ted in the Asia-Pacific reg ion in this decade. The i n c o r p o r a t i o n o f energy intensive agr icu l ture in part ac ted t o increase the cos t of p r o d u c i n g agr icul tural c o m m o d i t i e s fo r sale o n w o r l d markets [Smil 1985] . Such cu l t iva t ion techn iques requ i red cont inua l ly increasing c o m m e r c i a l energy inpu ts , available on ly t h r o u g h increased i m p o r t a t i o n . Increase in energy i m p o r t s by far e x c e e d e d increases in agr icul tural expor ts , lead ing t o a w o r s e n e d balance of payments s i tua t ion . This w o r s e n e d 1 4 balance of payments t o g e t h e r w i t h t h e accumula ted external d e b t o f m o s t nat ions in the Asia-Pacific reg ion has acted t o l o w e r the value o f local currencies mak ing i m p o r t e d agr icul tural and industr ia l inputs even m o r e expens ive fo r i nd igenous consumers [Levi 1983, T o d a r o 1985, Viksnins 1979] . The l o w e r e d value o f local currencies c o m p l e t e d the v ic ious circle imp ly ing that the L D C s had t o e x p o r t m o r e pr imary c o m m o d i t i e s in o rde r t o earn the same quant i ty o f f o re ign exchange t o be able t o a f ford increasing energy i m p o r t s and energy intensive agr icul tural p roduc ts . A n increase in p ro tec t ion is t t rends in industr ia l ized e c o n o m i e s has m a d e this process m o r e di f f icul t [IBRD 1987] . O n e mani fes ta t ion o f this d i l e m m a in the o i l - i m p o r t i n g d e v e l o p i n g count r ies o f the Asia-Pacific reg ion is the inabi l i ty t o f inance fu r ther i m p o r t s o f energy w i t h o u t the a l locat ion o f an inord inate ly large p r o p o r t i o n o f expor t earnings, leaving f e w e r resources fo r fu r ther g r o w t h and d e v e l o p m e n t . Figure 4 indicates the increase in t rade def ic i ts in the se lec ted count r ies d u r i n g the p e r i o d 1970-84. Fig. 5 indicates the ne t change in f o r e i g n exchange reserves. It can be seen that t rade balances and fo re ign exchange reserves are in def ic i t f o r m o s t o f the se lec ted count r ies . 2.2.3 Unemployment and Underemployment D e v e l o p m e n t in the o i l i m p o r t i n g d e v e l o p i n g count r ies o f the Asia-Pacific reg ion is character ized by increasing mechan iza t ion and the subs t i tu t ion o f labor by t e c h n o l o g y . In associat ion w i t h h igh p o p u l a t i o n g r o w t h rates [ o n the average abou t 2 % per a n n u m in m o s t o f the d e v e l o p i n g count r ies in the Asia-Pacific reg ion ] (6 ) , it can be seen tha t there is an increase in t h e size o f the labor - fo rce w i t h o u t a c o m m e n s u r a t e increase in t h e size o f t h e e m p l o y m e n t market . Increasing and unc on t r o l l ab le rural-urban migra t ion serves t o fu r ther w o r s e n this p r o b l e m of e m p l o y m e n t and inf rastructure p rov is ion for u rban areas [Singer 1977] . 15 FIGURE 3 NET EXTERNAL DEBT: ASIA-PACIFIC Mvr«: PJIECAT 1W4 1874 W76 1990 1OTI 1992 1983 EZZJ MALAYSIA ESI ITC FHILIFPIHI3 R^3 THAILAND K23 KOREA 16 FIGURE 5 3 CHANGE IN FOREIGN RESERVES Miirw: UHESCAP aUte, 1084 2.3 1.3 0.3 1 1 N i Jk a . -C.3 --1.3 T T — i — 1082 — i r 1983 1984 T 1974 1873 1978 1977 1978 1979 1980 1981 MALAYSIA PNG E??si PEILIFPINIS rXXI THAILAND 1 7 Increases in t rade def ic i ts , c h a n g i n g pat terns in w o r l d t rade and levels o f external d e b t have a bear ing o n the level o f e m p l o y m e n t in t h e less d e v e l o p e d e c o n o m i e s of t he Asia-Pacif ic reg ion . M o s t o f these e c o n o m i e s rely o n t rade t o genera te e c o n o m i c g r o w t h and t rade impl ies p r o d u c t i o n , w i t h p r o d u c t i o n imp ly ing e m p l o y m e n t . M a n y less d e v e l o p e d coun t r i es have t o rely o n impor t s o f raw materials t o a u g m e n t local resource inputs and sustain the p r o d u c t i o n process and its e m p l o y m e n t capacity. W i t h a d r o p in the m a g n i t u d e o f f o r e i g n exchange reserves necessary t o f inance these impor ts , t h e repercussions o n the level o f p r o d u c t i o n act ivi ty, and in l o n g run , e m p l o y m e n t , are o b v i o u s [ ILO 1983 1984 1985 ] . Fig. 6 compares nat ional and rural u n e m p l o y m e n t in f o u r coun t r ies se lec ted in this s tudy . From the graphs it is ev iden t that : 1 . A l t h o u g h rural u n e m p l o y m e n t compr ises a smaller percen tage o f to ta l u n e m p l o y m e n t in b o t h the Phi l ippines and Korea t h e m a g n i t u d e of rural u n e m p l o y m e n t in b o t h these coun t r i es has been increasing at a faster pace than to ta l u n e m p l o y m e n t . 2. In the case of Malaysia and Thai land, rural u n e m p l o y m e n t f o rms a signi f icant p r o p o r t i o n o f to ta l u n e m p l o y m e n t . Trends appear to indicate that in Malaysia, rural u n e m p l o y m e n t is o n a dec l ine whereas in Thai land rural u n e m p l o y m e n t is o n the increase since 1978. The percentage o f ' d isgu ised ' e m p l o y m e n t in the f o r m o f u n d e r e m p l o y m e n t is, f irst ly d i f f i cu l t t o measure and second ly has o f t e n b e e n re fer red t o as m o r e urban in nature, such as u n d e r e m p l o y m e n t in the urban in formal sec tor [Das 1986] . An i n f o r m e d source , h o w e v e r , est imates the level of rural u n d e r e m p l o y m e n t at 2 o u t every 3 worke rs in the case of Thai land and the Phi l ippines [ ILO 1986] . 2.3 Deficiencies of modern energy technologies Def ic iencies o f m o d e r n energy genera t ion t e c h n o l o g i e s , part icular ly in the c o n t e x t o f t h e Asia-Pacific reg ion , can be b road ly classif ied i n to th ree categor ies : F i g . 6 National and Rural memployment i n MALAYSIA: UNEMPLOYMENT TRENDS Mom: ILO m \.1 -1.1 -1.1 • 1 -«.f -4.9 ' 9.7-a.fl -• a • « , « -Q.I -o.a • «-i - I 1 V i "Tl 1 iI I i 1*74 1978 19 M It n if n 19 79 19 90 19 •i IKS PHILIPPINES: UNEMPLOYMENT TRENDS l l 1 1* • f -• • I -• -s-1 -f -I 3 I 3 i i 1  3 ii 1 1 1 ! it 7* 19 n it T It 77 If 79 19 79 19 99 19 91 19 u i t a A s i a - P a c i f i c : Malaysia, Thailand, P h i l i p p i n e s , Korea T H A I L A N D : U N E M P L O Y M E N T T R E N D S m m : ILO l l n 1074 197f lf7« lf77 [HI Lf7f U N . IttL KOREA: •1 UNEMPLOYMENT TRENDS r— iu ins l l " / / / / / / / / / / / / / / / / / / / / rzx\ Y/sx 1 PI / / / / / / / / / / / / / '/ / / / / / / / / / / / / / / / V / / 197* 1979 tZ23 TMal <m*CTk»l 1979 1977 1979 1979 1990 1991 1992 1993 l \ V Kuril «.)<capJ«7Tn*st 19 a. Questionable Technological efficiency. b. Inadequate Distributional equity. c. Potential for negative impacts on the Biophysical Environment. 2.3.1 Questionable technological efficiency In this thesis, t echno log ica l e f f ic iency is de f i ned as the rat io o f energy o u t p u t t o resource inpu t . The precise ef f ic iencies of energy genera t ion t e c h n o l o g i e s are d i f f icu l t t o measure in the c o n t e x t o f d e v e l o p i n g count r ies . W h a t can be measured , h o w e v e r , is t echno log ica l inadequacy given a scenar io o f rampant p o p u l a t i o n g r o w t h and rural t o urban m ig ra t i on . Popu la t ion in m o s t o f t h e count r ies se lected is increasing at t he rate o f a b o u t 2 % per a n n u m . The c o r r e s p o n d i n g energy requ i rements of the p o p u l a t i o n can be calculated using statistics o n per capi ta energy c o n s u m p t i o n rates. O n e p r o b l e m in this approach is the fact that rates o f energy c o n s u m p t i o n are n o t static w i t h respect t o b o t h the type and quant i ty o f energy c o n s u m e d [H arrison 1983] . In a d d i t i o n , the incomes of the p o p u l a t i o n in m o s t d e v e l o p i n g coun t r ies , the Asia-Pacific reg ion b e i n g n o e x c e p t i o n , usually increase at a s l o w e r rate than the d e m a n d fo r secondary energy [ADB 1982] . Given the hypothes is that increased energy c o n s u m p t i o n is in part caused b y p o p u l a t i o n increase and that the i n c o m e of the p o p u l a t i o n does n o t increase co r respond ing ly , can a so lu t ion w h i c h focusses solely o n i m p r o v i n g and expand ing conven t iona l t e c h n o l o g y o r i nco rpo ra t i ng " techn ica l f i xes" , work? In this sense, conven t iona l energy t e c h n o l o g y in the Asia-Pacific reg ion is inef f ic ient , because of its inabi l i ty t o c o p e w i t h rapidly increasing d e m a n d . This p ic tu re is n o t a l toge ther unreal ist ic. Rural dwel lers are o f t e n the benef ic iar ies o f rural e lect r i f icat ion p rograms w h i c h are f u n d e d t h r o u g h d e v e l o p m e n t aid. W h a t is i g n o r e d is the fact that many rural dwel lers c a n n o t a f ford the energy o u t p u t f r o m these faci l i t ies(7). Secondly , 'state o f t he art ' t e c h n o l o g y general ly requires an advanced level o f o p e r a t i o n and ma in tenance , o f t e n unavailable in d e v e l o p i n g coun t r ies , lead ing t o f r e q u e n t b r e a k d o w n s and technical ma l func t ions [ ILO 1986] . These mal func t ions increase energy pr ices. D e m a n d , 20 given rampant p o p u l a t i o n g r o w t h and urban iza t ion , is always o n the increase in m o s t d e v e l o p i n g coun t r ies . Assuming the techno log i ca l fix so lu t ion and g iven the uncer ta in m a c r o - e c o n o m i c e n v i r o n m e n t , i m p r o v i n g and e x p a n d i n g conven t iona l energy facil it ies such as o i l ref iner ies, adds t o the h igh level o f accumu la ted net external d e b t . O n the o n e hand , t h e W o r l d Bank [1983] no tes that " m o s t of t h e oi l ref ineries in d e v e l o p i n g count r ies are over 15 years o l d and w e r e des igned t o m in im ize capital costs at t he expense of h igher energy c o n s u m p t i o n . The increased cost o f energy over the past decade [1973-83] makes it w o r t h cons ide r ing several changes t o increase energy e f f i c iency" . They c o n c l u d e tha t as ref ineries ge t o l d e r and "because a t ten t ion t o main tenance, especial ly p revent ive ma in tenance , has general ly b e e n inadequate , substant ial repairs and rep lacement o f e q u i p m e n t are necessary" . They r e c o m m e n d a re fu rb ishment o f these ref ineries based o n the i r size and the size o f t he market that t h e y serve(8). O n the o t h e r hand , the same ins t i t u t i on , in associat ion w i t h o t h e r commerc ia l ones , p o i n t o u t the dangers o f increasing d e b t in d e v e l o p i n g coun t r ies . The p r o b l e m the re fo re b e c o m e s o n e of balancing an increasing level o f external d e b t w i t h increased external f u n d i n g f o r the instal lat ion or re fu rb ishment o f pr imary resource convers ion faci l i t ies, such as p e t r o l e u m ref ineries. A n o t h e r fac tor that in f luences the ef f ic iency o f t e c h n o l o g y is the level t o w h i c h it has b e e n ' t rop ica l i zed ' . O f t e n , designs fo r the t e c h n o l o g y are concep tua l i zed in areas d is tant and w i t h d i f fe rent c l imat ic cond i t i ons f r o m the area f o r w h i c h they are des t ined [Harr ison 1983] . Given this fact, i m p r o v e m e n t s in c o n v e n t i o n a l t echno log ies wi l l n o t necessarily he lp t o amel io ra te the ef f ic iency issue. Al ternat ive o r appropr ia te t e c h n o l o g i e s c o u l d a u g m e n t c o m m e r c i a l energy supply t o the rural dwe l le r w i t h o u t the n e e d fo r pe r i od i c rat ional izat ions c o m m o n w i t h conven t iona l energy techno log ies . In add i t i on , these al ternat ive t e c h n o l o g i e s assume a greater i m p o r t a n c e if they can be ins t i tu ted in areas that are n o t economica l l y v iable t o service by c o n v e n t i o n a l energy supply . The ideal s i tuat ion o f coex is tence o f hard 21 and sof t paths, as env is ioned by Lovins [1979 ] , is t he re fo re achievable. Required is the necessary c o m m i t m e n t o n the parts o f b o t h the end-users and g o v e r n m e n t s in the Asia-Pacific reg ion . 2.3.2 Inadequate distributional equity M o d e r n energy genera t ion t e c h n o l o g i e s have fai led t o p r o v i d e d is t r ibu t iona l equi ty . T w o major reasons have b e e n o f fe red f o r th is d rawback: a. An inadequacy in inf rastructure. b. A po lar izat ion o f benef i ts . a. As a l luded t o in sec t ion 1.2, m o s t d e v e l o p i n g count r ies suf fer f r o m a lack o f adequate energy supp ly inf rastructure in te rms o f b o t h qual i ty and quant i ty . Even if in f rastructure does exist , g iven the m a c r o - e c o n o m i c se t t ing and the non-a f fo rdab i l i t y and unavai labi l i ty of spare parts, t hey are o f ten in an i r recoverable state of disrepair. Secondly , soph is t ica ted d is t r ibu t iona l in f rastructure tends t o be c o n c e n t r a t e d in relatively u rban ized areas as part o f larger locat iona l decis ions, and is, in part , responsib le fo r increasing rural t o urban mig ra t ion [IBRD 1979 1981 1983, M c C e e 1985] . b. By v i r tue of t he fact that in f rastructure is c o n c e n t r a t e d in u rban areas, it is asserted that there is a po lar izat ion o f benef i ts accru ing f r o m these energy pro jec ts . Urban dwel lers have p re fe rence over rural ones w h e n it c o m e s t o locat ional dec is ions fo r s i t ing p r o d u c t i o n and d i s t r i bu t i on facil i t ies [Dunker ley 1980, Taylor 1981] . Fur thermore , assuming that locat ional dec is ions are favorable t o rural dwe l le rs , secondary energy such as fert i l izer supp l ied t o rural areas is l ikely t o benef i t the already wea l thy o r that g r o u p that has access t o and leg i t imat ion w i t h i n the ex is tent pol i t ica l system [Harr ison 1987, Roy 1983] . A p p r o p r i a t e o r i n te rmed ia te t e c h n o l o g y c o u l d play a part in chang ing this imbalance, f irstly by its rural app l ica t ion and second ly by capi ta l iz ing o n pre-ex is t ing t rad i t ional d i s t r i bu t ion n e t w o r k s o f ten re lated t o rural se t t lement -spec i f i c social hierarchies. 2 2 2.3.3 Potential for impacts on the biophysical environment Envi ronmenta l degrada t ion in d e v e l o p i n g count r ies is increasing at an alarming pace as a resul t o f un regu la ted p r o d u c t i o n o f energy and its by -p roduc ts [Chat ter j i et .a l . 1 9 8 1 ; M a t t h e w s e t al 1981] . O n e perspect ive is that t h e s i tuat ion exists because of lax env i ronmen ta l p r o t e c t i o n legis lat ion. The ins t i tu t ion o f alternative energy t e c h n o l o g i e s at t he rural level , especial ly t hose techno log ies that recycle waste viz. t he b iogas d igester , removes the n e e d fo r b o t h creat ing and m o n i t o r i n g env i ronmen ta l legis lat ion. Even if t he t w o fo rms o f t e c h n o l o g y co-ex is t , it is still a vast i m p r o v e m e n t c o m p a r e d t o the s i tuat ion w h e r e there is w i d e s p r e a d env i ronmen ta l degrada t ion , inadequate legis lat ion and m o n i t o r i n g and n o alternatives [ D e u d n e y & Flavin 1983] . Table I is a qual i tat ive representa t ion o f the intensi ty of the i m p a c t o f conven t iona l energy t e c h n o l o g y o n the b iophysica l e n v i r o n m e n t in the se lected coun t r ies . It can be seen that issues o f major and i m m e d i a t e c o n c e r n are increasing air p o l l u t i o n f r o m an increased use o f coal and radioact ive waste disposal in Korea. A n issue of m e d i u m c o n c e r n is increasing de fo res ta t ion caused by increased rural energy d e m a n d in Malaysia and Papua N e w Guinea. In add i t i on , it is specu la ted tha t fu r the r o f f sho re oi l and gas d e v e l o p m e n t in the Phi l ippines wi l l have negat ive impacts o n sensit ive coastal zones . 2.4 The rural energy scene Centra l t o a c o m p r e h e n s i v e unders tand ing of t he rural energy p r o b l e m , is an e labora t ion o f t h e types o f energy c o n s u m e d by rural dwel lers and the re la t ion b e t w e e n rural energy c o n s u m p t i o n and rural i n c o m e . 2.4.7 Types of energy Table II summar izes the d i f fe rent fo rms of energy that are available, a f fordable and del iverable t o the rural dwel ler . The sources o f energy , as is seen f r o m the tab le, are Table I Conventional Energy technologies and t h e i r Impacts on the biophysical environment (source; Fesharakl. Brown e t . a l . 1982 p.231)  A i r P o l l u t i o n from increased use of Coal Dlsoosal of Radioactive wastes from Nuclear Plants Offshore O i l & Gas development on Coastal Zones Hydropower and Land-use Deforestation from increased r u r a l eneray demand KOREA MALAYSIA PAPUA NEW GUINEA PHILIPPINES CO THAILAND KEY: *** Major Concern ** Medium concern * Some concern Table II Sunrary of Energy sources and rural end-uses in the Asia-pacific region  (sourcei Barnes D. quoted in Pearce P., s Webb M., 1987) Rural End Other Hater Human Animal Bicmass Animl Uses Electricity Batteries Kerosene pet. prods. Coal Biogas power power power sources waste Wind Solar DOMESTIC Cooking * * • - • • * - • * Lighting ' * * • * Heating * : *• • • • * • Cooling * Refrigerator * • • Radio/TV * • • Ironing • • • Potable Water * * * • * * AGRICULTURE Purrping * * Irrigation * * * Ploughing * - • Sowing * * • Harvesting * * • Threshing * * • * • • Drying * * * • * Grinding - * • • * * » Transport * .« Storage * CChWEROAL Lighting * • • • Refrigerator • • Heating * • • • » Cocking • • • Transport * • • MJUSTRf native power • Lighting * * Heating » * * Transport • * * 25 pr imari ly n o n - c o n v e n t i o n a l and have been classif ied as n o n - c o m m e r c i a l [IBRD 1980] . Figure 7 is a c o m p a r i s o n o f gross annual expend i tu res o n n o n - c o m m e r c i a l [ i nc lud ing f i r e w o o d , paddy husk, charcoal , c o c o n u t branches, and paddy st raw] and c o m m e r c i a l energy sources by d i f fe ren t i n c o m e categor ies in Thai land. Figure 8 is a similar representa t ion f o r t h e Phi l ippines: It represents the to ta l energy c o n s u m e d f r o m c o m m e r c i a l and n o n - c o m m e r c i a l sources by d i f fe rent i n c o m e groups(9) . Table 111 is a genera l izat ion o f t he Korean case. It indicates the type o f fue l available t o the rural dwel ler , t he a m o u n t n e e d e d per day, the cost per un i t and the to ta l daily e x p e n d i t u r e o n energy f o r c o o k i n g and o t h e r d o m e s t i c purposes . The aggregated quant i t ies indicate p r o j e c t e d values of annual gross e x p e n d i t u r e o n d i f fe rent energy sources by a f i ve-person h o u s e h o l d assuming a cons tan t rate o f c o n s u m p t i o n . 2,4.2 Energy and rural income T w o factors af fect t he m a g n i t u d e of rural energy c o n s u m p t i o n . The i n c o m e of the rural dwel le r , de te rmines af fordabi l i ty o f c o m m e r c i a l fuels such as kerosene and associated p e t r o l e u m p r o d u c t s and hence, levels o f c o n s u m p t i o n . It is seen that in the case of t he Phi l ippines that n o n - c o m m e r c i a l fuels are general ly accessible and the re fo re pre fer red by p e o p l e w h o s e i n c o m e s range f r o m 2500-5000 pesos per a n n u m . There are except ions especial ly in Luzon and M i n d a n a o w h e r e similar energy sources appear preferable t o t h e h ighest i n c o m e g r o u p : greater than 5000 pesos per a n n u m . As the graphs ind icate, all i n c o m e g roups in Thai land appear t o c o n s u m e a greater p r o p o r t i o n o f n o n - c o m m e r c i a l energy sources c o m p a r e d t o c o m m e r c i a l sources. H i g h i n c o m e North-Easterners appear t o pre fer n o n - c o m m e r c i a l energy inc lud ing f i r e w o o d , b iomass and animal was te , bu t in general t he l o w e s t i n c o m e ca tegory , less than 25000 Baht pe r a n n u m , appears t o be the largest c o n s u m e r o f n o n - c o m m e r c i a l renewab le energy resources. Similar general izat ions can be d rawn fo r the cases o f Malaysia, Korea and Papua N e w Guinea. The pervasive impact o f l o w rural i n c o m e o n energy c o n s u m p t i o n pat terns is ub iqu i t i ous in all of the count r ies FIGURE 7 5 c « 3 • o & c H 80 50 -40 -30 -20 -Philippines: Energy-Income profiie (Source: b U m et.al 1084) LOW ( <2500 P ) Commercial M1DPJM ( 2501 - 7990 P ) Income classes l \ \ J Xon-commBrciai fflGH ( > 7908 P ) FIGURE 8 A * n • • « 2 i e b U 4 c H Thailand: Energy-Income profile (Source: b l i m et.al 1984) I «25000) II (25-48000) ID (43-72000) I? (73-120000) V (> 120000) 1/ / | Commercial Income r i S 1 ee Kon—commercial Table I I I Korea: Cooking f u e l type and cost Five person household  (Source: Chun 1984) Fuel Type Amount needed per Unit cost day • ' (Won/Unit) Daily cost Annual cost (Won) (Won) Biogas 1 Cubic Meter 112.7/cu.m. 112.7 33,600 Propane Kerosene 0.5 Kg 0.9 L i t r e s Coal Bricks 2 pieces E l e c t r i c i t y 6KWh 627/Kg 179/Litre 95/piece 61.18/KWh 313.5 161.1 190.0 367.08 94,200 48,000 57,000 110,100 28 se lec ted . The o t h e r i m p o r t a n t factor is t h e availabil i ty o f t he fue l itself. Variables such as graft and c o r r u p t i o n c a n n o t be represen ted quant i ta t ive ly as the prima causie b u t it is poss ib le that they play a major role in d e t e r m i n i n g the availabil ity of commerc ia l fuels t o the l o w i n c o m e rural dwe l le r (10) . 2.5 Appropriate Technology at a conceptual level The c o n c e p t o f appropr ia te t e c h n o l o g y has d i f fe rent c o n n o t a t i o n s t o d i f fe rent p e o p l e . Daly [1977] v iews appropr ia te t e c h n o l o g y as a mani fes ta t ion o f a steady state and in tegra ted re lat ionship b e t w e e n h u m a n and natural env i ronmen ts " s o that w e d o n o t o v e r p o w e r the sel f -heal ing capacit ies o f natural systems t o mainta in themselves and s u p p o r t l i fe " . Bender [1978 ] , o n the o the r h a n d , adop ts a m o r e pragmat ic approach t o de f in ing appropr ia te t e c h n o l o g y as, he argues, its a d o p t i o n w o u l d entail d e v e l o p i n g social , e c o n o m i c and env i ronmen ta l diversi ty so that c o m m u n i t i e s and reg ions can p r o v i d e for thei r o w n needs w i t h o u t " p u t t i n g all their eggs in to a single shr ink ing basket o f i m p o r t e d and d e p l e t i n g resources" . Bo th Van der Ryn [1975] and Schumacher [1978] are of the o p i n i o n that the a d o p t i o n o f appropr ia te t e c h n o l o g y w o u l d mean creat ing and manag ing systems that requi re " less capi ta l , less mach ine -wa tch ing and paper shuf f l ing ; b u t m o r e ' pe rsona l ' i n v o l v e m e n t and 'd i rec t ' p r o d u c t i o n " [Schumacher 1978, p. 113] . The a d o p t i o n o f so f t energy paths, argues Lovins [1979 ] , is necessary fo r energy sel f -suf f ic iency and secur i ty o f energy supply . Traversing a so f t -ene rgy path impl ies an ex t rac t ion o f renewab le resources f r o m a ' c o m m o n s ' [Hard in 1968 ] . In o t h e r w o r d s , because a so f t -energy path impl ies a sustainable use o f renewab le ene rgy resources, the t ragedy o f o v e r c o n s u m p t i o n w i t h o u t rep len ishmen t , resul t ing in a po ten t ia l d e p l e t i o n o f resources f r o m the c o m m o n s can be aver ted. By us ing renewab le resources in this way the resource base can be ut i l ized in a m o r e sustainable manner benef ic ia l t o present as 29 we l l as fu tu re users o f the c o m m o n s . App rop r i a te t e c h n o l o g y has l o n g b e e n a l luded t o as having impl icat ions fo r e n h a n c e d c o m m u n i t y i nvo l vemen t and par t ic ipat ion in t h e p r o d u c t i o n process. People o f t he stature o f Gandh i , Schumacher , Sri A u r o b i n d o and M o t h e r Teresa w h o stressed the measures o f equ i t y and par t ic ipat ion advocate the use o f these t e c h n o l o g i e s t o b o t h enhance social re lat ionships as we l l as to b r o a d e n the con tex t o f t rad i t ional e c o n o m i c approaches t o c o m m u n i t y d e v e l o p m e n t . Jones [1983 ] , in add i t i on , stresses the sense o f ach ievement ensu ing f r o m the use o f these t e c h n o l o g i e s , w h i c h is lost in t h e mass p r o d u c t i o n , 'assembly- l ine ' approach t o p r o d u c t i o n . N o t w i t h s t a n d i n g these c o n c e p t u a l advantages, it must be b o r n e in m i n d that there are opera t iona l and tangib le benef i ts associated w i t h t h e use o f a l ternat ive t e c h n o l o g i e s , especial ly f r o m the perspect ive of d e v e l o p i n g coun t r ies . These inc lude the fact that the i r use creates jobs w h e r e they are n e e d e d mos t , in the rural areas, in add i t i on t o the i r po ten t ia l ro le in t h e sat isfact ion o f basic needs at t he rural level. Lastly, t hey c o u l d play an impor tan t part in arrest ing the present rate of env i ronmenta l degrada t ion n o t on ly by v i r tue o f resource conserva t ion b u t also by m i n i m i z i n g the f l o w of e f f luents i n to the b iophys ica l e n v i r o n m e n t [Singer 1977; Islam et.al . 1984; UNESCO 1984 ] . 2.6 "Appropriate software" Sof tware in an appropr ia te system, as m e n t i o n e d at t h e ou tse t , compr ises i n f o r m a t i o n and o t h e r s u p p o r t services necessary fo r t h e ef f ic ient instal lat ion and o p e r a t i o n o f the t e c h n o l o g y [ H u g h e s et.al 1985 ] . It i ncorpora tes the n o t i o n that t h e r e needs t o be adequate t ra in ing, research and d e v e l o p m e n t fo r b o t h innova t ion in hardware as we l l as in f unc t i ons such as e d u c a t i o n and i m p r o v i n g end-user par t ic ipat ion. T o date, as wi l l be seen in chapter V o f this thesis, m o s t o f t he coun t r ies in the Asia-Pacific reg ion have establ ished research and d e v e l o p m e n t centers t o p r o v i d e sof tware s u p p o r t t o the rural 30 end-user . Some examples are the Of f i ce fo r Rural D e v e l o p m e n t in Korea, Kasetsart Universi ty in Thai land, SPATF [South Pacific A p p r o p r i a t e T e c h n o l o g y Foundat ion ] and The Min is t ry fo r Rural D e v e l o p m e n t in Papua N e w Gu inea [Power 1980, A r t h o r n t h u r a s o o k 1984, C h u n 1984] . S u m m a r y 1. D e v e l o p i n g coun t r ies in the Asia-Pacific reg ion are character ized by p rob lems in the availabil ity, a f fordabi l i ty and del iverabi l i ty o f pr imary as wel l as secondary commerc ia l and n o n - r e n e w a b l e energy resources. 2. These di f f icul t ies are exacerba ted by prevalent m a c r o - e c o n o m i c c o n d i t i o n s exemp l i f i ed by the d e b t crisis, t rade def ic i ts , shor tages in f o r e i g n exchange and h igh levels o f b o t h nat ional and rural u n e m p l o y m e n t . 3. C o n v e n t i o n a l energy techno log ies have fai led t o m e e t the secondary , commerc ia l energy requ i rements of rural dwel lers by v i r tue o f the fact tha t thei r t echno log i ca l ef f ic iencies are ques t ionab le , the i r d is t r ibu t ion is inequ i tab le and they have de t r imen ta l impacts o n the b iophys ica l e n v i r o n m e n t . 4. From an analysis of rural i n c o m e - e n e r g y c o n s u m p t i o n pat terns, the p o o r in the Asia-Pacific reg ion appear t o be a lmost w h o l l y d e p e n d e n t o n n o n - c o m m e r c i a l energy resources. 5. A p p r o p r i a t e energy t e c h n o l o g y appears, at a c o n c e p t u a l level , t o be a viable part o f an energy supp ly system w h i c h incorpora tes coex is tence o f hard and sof t paths. 6. It is a rgued at a concep tua l level that the ins t i tu t ion o f ' app r op r i a te ' t e c h n o l o g i e s in d e v e l o p i n g count r ies leads t o less ' paper -shu f f l i ng ' and ' m o r e d i rec t p r o d u c t i o n ' . 3 1 This is the setting in the Asia-Pacific region today. This setting must be borne in mind for the balance of this thesis in order to have a more focussed understanding of the problems of appropriate energy technologies and possible policy responses to solve the rural energy problem. 32 CHAPTER III: THE TECHNOLOGIES This chap te r presents a rev iew of d i f fe rent f o r m s o f appropr ia te o r in te rmed ia te t e c h n o l o g i e s , solar and b iogas. Their d i s t r i bu t ion the Asia-Pacific reg ion is also ar t icu lated. 3.1 Solar technologies Solar energy systems range f r o m s imple t o c o m p l e x . There are th ree basic c o m p o n e n t s in a solar energy genera t ion system: a co l lec tor , a c o n c e n t r a t o r and a convers ion uni t . The process o f energy genera t ion is s imple. Radiat ion f r o m the sun reaches a co l l ec to r w h i c h concent ra tes the energy and t h e n transmits it t o s o m e f o r m of convers ion sys tem. The a m o u n t of solar energy reaching the co l lec to r is regu la ted naturally as o p p o s e d t o , say, a natural gas del ivery system. The lesser the n u m b e r o f obstac les t o t h e path o f solar rad ia t ion t h e greater t he m a g n i t u d e o f t h e energy genera ted . Six factors af fect b o t h the qual i ty and quant i ty o f solar energy p r o d u c e d f r o m a c o l l e c t o r - c o n c e n t r a t o r - c o n v e r t e r c o m p l e x [Myers 1984] : i. Site character ist ics and the geograph ica l l oca t ion o f a site d e t e r m i n e the a m o u n t o f inc ident solar rad ia t ion. A l t i t ude and t ype o f c l imate, w h e t h e r c loudy o r clear, are o the r i m p o r t a n t s i te-speci f ic variables. ii. The loca t ion o f t h e solar co l lec to r o n site. ii i. The o r ien ta t i on o f t he co l lec tor . iv. The t i m e o f day. v. The t i m e o f year, and v i . A t m o s p h e r i c clearness in terms of the co l lec tor ' s p r o x i m i t y t o tall bu i ld ings and o t h e r urban features as we l l as the level o f p o l l u t i o n , natural o r a n t h r o p o g e n i c . Solar energy systems are o f t w o types: Act ive and passive, a. Passive: These inc lude b o t h passive c o o l i n g and passive heat ing types. They are general ly 33 less t e c h n o l o g y intensive and rely o n pract ices such as b e t t e r insu lat ion in resident ial bu i ld ings and the system c o u l d the re fo re d e p e n d o n cho ices o f bu i l d ing materials. A n example o f a c o m m u n i t y s ized passive heat ing system is a solar p o n d [Lura 1979, B ron fman 1983] . It w o r k s o n the pr inc ip le o f creat ing a t e m p e r a t u r e d i f ferent ia l fo r us ing a t h e r m o c o u p l e t o generate e lectr ic i ty . Passive systems t e n d t o place an emphasis o n the co l l ec to r and concen t ra to r . In the case of resident ial areas, a b e t t e r cho ice o f bu i ld ing materials and insulat ing mechan isms impl ies a be t te r co l l ec to r and c o n c e n t r a t o r set -up. P roponen ts o f passive solar systems argue, and qu i te just i f iably so , that savings in heat ing and ut i l i ty costs are w h a t result f r o m passive systems [Myers 1979, U N E S C O 1983] . Passive systems, h o w e v e r , are used m o r e in an augmenta t i ve capaci ty and are n o t general ly f o r the sole p u r p o s e of genera t ing energy t h r o u g h a convers ion process such as in active systems. Table IV indicates the types o f passive solar t e c h n o l o g y that have b e e n a d o p t e d in the Asia-Pacific reg ion . b. Ac t ive : Act ive systems, o n t h e o t h e r h a n d , are t e c h n o l o g y intensive and rely o n the s tate-of - the-ar t t o faci l i tate c o l l e c t i o n , c o n c e n t r a t i o n and conve rs ion . This is ev idenced by t h e var ious fo rms of active t e c h n o l o g i e s available o n t h e U.S. marke t [see tab le V ] . Based o n c o l l e c t o r speci f icat ions, act ive systems can be subd iv ided in to systems that have t rack ing co l lec to rs and those w h i c h d o n o t . In this c o n t e x t , an i n d e p e n d e n t ca tegory w o u l d be p h o t o - v o l t a i c active systems. W i t h i n t rack ing co l lec tors fu r ther subd iv is ion is possib le i n to those tha t t rack the sun a long o n e axis and those tha t are two-ax is t rack ing . S h o w n in Table V are s o m e active systems stil l in the d e m o n s t r a t i o n stage. A m o n g t h e non- t rack ing systems, the m o s t i m p o r t a n t are s imple flat plate co l l ec to r systems and the i r var ious c o m m e r c i a l mod i f i ca t ions : T h o m a s s o n , Calmac, PPG, Sunworks , H o n e y w e l l , Lennox and Solaron systems. The so laron des ign is fu r ther m o d i f i e d i n to a c o n c e n t r a t o r t ype co l l ec to r so that b o t h co l l ec t ion and c o n c e n t r a t i o n o c c u r at t he same p o i n t w i t h n o ' t ransmiss ion ' losses. Table VI is an i l lustrat ion o f the d i f fe rent types o f active solar t e c h n o l o g i e s present in s o m e count r ies of t he Asia-Pacific. A m o r e deta i led d iscussion is pu rsued in chapter V. Table IV Passive solar technologies i n the A s i a - P a c i f i c (Sources: Eggers Lura 1979, Power 1980, KIER 1980, Cnirrarattananon 1984, Malaysia Natnl. papers 1979) Country Examples Date i n i t i a t e d Current status Korea . Solar Homes . Solar cookers 1977 1982 In existence In existence Malaysia Not c l e a r Not c l e a r Not c l e a r Papua New Guinea Solar lumber dryers 1979-80 Not c l e a r Philippines Solar cookers Solar ponds 1978 1980 In existence In existence Thailand Solar Homes 1979 In existence Table V Active Solar technologies on the U.S. market (source! US Office of Technology Assessment)  Non-Tracking One-Axis Tracking Two-Axis Tracking . Simple Flat Plate Collector . Flat Plate onstage . Thomasson . Calmac . Modified Calmac • PPG . Sunuorks . Honeywell . Lennox . Solaron . Albu/West . Sandia . Acurex . Solartek . Beam . General Atomic . Scientific Atlanta . AAZ/Suntech . Ganged Collector . Lower Parabolic . Carousel . Francia . Fresnel state . 'Danxode' Table VI Active Solar technologies in the Asia-Pacific (source: Eggers Lura 1979, Malaysia Natl, paper 1980, Chirrarattananon 1984, Phil. Min. of Energy 1977 Country Examples Date initiated Current status Korea Malaysia Papua New Guinea .Experimental plants .Oogeneration units unclear Philippines .Experimental plants •solar cookers Thailand .private photo-voltaic installations 1979 1978 unclear 1980 1978 1982 unclear unclear unclear in existence in existence in existence 36 Solar energy has many uses. Flat p late co l lec tors can be used f o r b o t h wa te r and space hea t ing . Der ivat ives o f t he s imple flat plate co l l ec to r inc lude t h e T h e r m o s i p h o n water heater, f o r c e d c i rcu la t ion w a t e r heaters and s w i m m i n g p o o l water heaters. A range o f o the r uses o f t h e s imple f lat p late co l lec to r inc lude space heat ing ; c o m b i n a t i o n s w i t h hea t -pumps ; desal inat ion purposes ; d is t i l la t ion; salt p r o d u c t i o n t h r o u g h d ry ing ; solar c o o k i n g and d ry ing ; re f r igera t ion and a i r -cond i t io in ing and f inal ly, faci l i tat ing the t rans fo rmat ion o f solar energy i n to mechanica l energy [Lura 1979] . The o b v i o u s advantage associated w i t h solar t e c h n o l o g i e s is that they are env i ronmenta l l y ben ign (1 ) ; they ut i l ize resource inputs that are b o t h renewab le and i n d i g e n o u s ; and are available t o all end-users w i t h relatively s imple t e c h n o l o g y , unl ike the c o m p l e x i t y associated w i t h conven t iona l ' s ta te-o f - the-ar t ' energy t e c h n o l o g i e s . 3.2 Biogas Technologies A biogas d igester emp loys the pr inc ip le o f anaerobic f e r m e n t a t i o n o r d iges t ing organ ic waste mater ial t o p r o d u c e m e t h a n e . This process is b o t h faci l i tated and catalyzed by m i c r o b e s in the waste material . The so l id remnant o f the d iges t ion process, the s ludge, serves as a useful fer t i l izer(2) . The d iges t ion process occurs in a p i t w i t h an inlet and t w o ou t le ts . The wastes are ' d u m p e d ' in t h r o u g h an inlet and t h e gas genera ted , be ing l ighter than the s u r r o u n d i n g s ludge, f loats t o the t o p and is released t h r o u g h the t o p ou t l e t . The s ludge is ' w a s h e d ' o u t f r o m the b o t t o m ou t le t . In s o m e Chinese designs, a valve has b e e n used at t h e t o p t o c o n t r o l t he ve loc i ty o f t h e gas f l o w [Buren 1978] . There are var ious sugges t ions o n appropr ia te materials fo r c o n s t r u c t i n g these digesters and this is an area of cur ren t t echno log i ca l research(3). Three major factors in f luence the a m o u n t o f b iogas tha t can be genera ted f r o m a g iven quan t i t y o f o rgan ic wastes [Meyne l l 1976] : 37 a. The mic roc l ima te o f the area. Fermentat ion is faci l i tated by a t e m p e r a t u r e range of 20-30 degrees cen t ig rade . b. The materials used in the c o n s t r u c t i o n o f t he d igester . Metals are less ef f ic ient and p r o n e t o co r ros ion w i t h excessive and repeated usage [Meyne l l 1976] . c. The c o m p o s i t i o n and pur i ty of t he waste material i tself; if d i lu ted w i t h inorganic wastes, the pe r fo rmance is l o w e r than fo r pure organic wastes. Table VII gives an idea of s o m e d i f ferent mod i f i ca t i ons of b iogas techno log ies w i t h a n o t e o n h o w they d i f fer f r o m each o ther . In t h e c o n t e x t of less d e v e l o p e d count r ies the ' w e t ' [batch] and 'd ry ' [ p l u g - f l o w ] styles appear t o be the m o s t popu la r (4 ) . There are t w o sizes o f d igesters that this thesis is c o n c e r n e d w i t h : The fami ly sized and t h e c o m m u n i t y - s i z e d d igesters . Both o f these can be e i ther dry o r w e t types, b u t c o m m u n i t y - s i z e d d igesters are rarely ' d ry ' in nature [Taylor 1 9 8 1 , L ich tman 1983, G o w e n 1985, G u p t a 1983, Ghate 1979] . Table VI I ! indicates t h e d is t r ibu t ion o f d ry style h o u s e h o l d plants in Korea. It is t o be n o t e d that in a lmost all of the p rov inces , the n u m b e r o f e m p l a c e d digesters have increased a lmost 5 0 % in the p e r i o d 1982-83. In ar t iculat ing the possible uses of b iogas, a Ch inese biogas manual no tes that o n e c u b i c me te r o f b iogas can [Buren 1978 ] : i) Light an electr ic b u l b of 60-1OOVV rat ing fo r a p e r i o d o f six hours. ii) C o o k three meals fo r a fami ly o f 5-6. iii) Dr ive a 3 t o n lorry fo r a d istance o f 2.8 k m . iv) Genera te 1.25 K W of electr ic i ty. v) Run a 1 hp m o t o r f o r 2 hours . As n o t e d in sec t ion 1.4.1, many areas in rural Asia are already using b iogas fo r s o m e of the func t i ons m e n t i o n e d above . H o w e v e r , b iogas as a f rac t ion o f to ta l energy use has yet t o be quant i ta t ive ly d e t e r m i n e d fo r many rural areas in the Asia-Pacific. Table VTI Types of biogas digesters (Source: Maynell 1976, UNESCO 1984, UNEP 1983) Digester type Suitable wastes Gas Operating Control production temperatures  Batch ('wet') A g r i c u l t u r a l (Organic) Irregular 30-35uC L i t t l e Plug-Flow ('dry') A g r i c u l t u r a l Continuous 30-35uC Simple U) 00 High-rate A g r i c u l t u r a l I n d u s t r i a l Continuous 30-35 C Complex Anaerobic Contact A g r i c u l t u r a l I n d u s t r i a l Continuous 30-35wC Complex Secondary (inputs from primary) A g r i c u l t u r a l I n d u s t r i a l None( sent back to primary) same as primary Simple 39 In c o n c l u d i n g , s o m e of t he benef i ts that accrue f r o m the ent i re process are: a. M i c r o - c o n t r o l o f wa te r p o l l u t i o n and e u t r o p h i c a t i o n , by reduc ing t h e quant i ty of nu t r ien ts in the slurry fert i l izer, as o p p o s e d t o the s i tuat ion w h e n the wastes are a l l owed t o leach d i rect ly t o the f ie lds and prox ima l sources o f runn ing water . [UNESCO 1984 ] . b. Anaerob ic f e r m e n t a t i o n results in the remova l o f cer ta in p a t h o g e n s in organic waste and can thus be v i e w e d as a process benef ic ia l f o r the c o n t r o l o f w a t e r - b o r n e diseases such as schistosomiasis. c. The process has posi t ive imp l ica t ions f o r smel l and o d o r c o n t r o l in rural se t t lements . Finally, anaerob ic f e r m e n t a t i o n in rural se t t l ements c o u l d have posi t ive impacts o n sani tat ion and qual i ty o f l i fe. It can he lp t o arrest u n c o n t r o l l e d de fo res ta t ion and , in d o i n g so, p revent fu r ther de te r io ra t ion and degradat ion o f t h e rural b iophys ica l e n v i r o n m e n t . TABLE VIII Distribution of dry style household biogas plants in Korea (source: Chun 1984) PROVINCE 1982 1 983 TOTAL Kyunggi 58 59 1 1 7 Kangwon 20 44 64 Chungbuk 2 31 33 Chungnam 12 44 56 Chonbuk 4 55 59 Chonnam 20 70 90 Kyungbuk - 101 101 Kyungnam 2 59 61 Chejudo 36 303 339 Total 766 920 40 CHAPTER IV: SOLAR AND BIOGAS ECONOMICS This chap te r discusses e c o n o m i c aspects o f solar and biogas t e c h n o l o g i e s . As G o w e n [1985 p.38] no tes , " t h e de te rm ina t i on of t h e f inancial and e c o n o m i c feasibi l i ty o f fue l p r o d u c t i o n and/or convers ion t e c h n o l o g y cons t i tu tes an i m p o r t a n t part o f energy p l a n n i n g " . 4.1 The theory Prior t o a p ro jec t feasibi l i ty s tudy a long benef i t -cos t l ines, six ques t ions arise [Santerre 1984; G i t t inger 1982; C o w e n 1985] : a. What is the perspective used in valuing benefits and costs? b. What type of project comparisons are used? c. What is the time horizon used in reporting benefits and costs? d. How are these benefits and costs valued? e. What type of costing concerns the analyst and, finally f. What decision criteria are used to accept or reject a project? Table IX is a summary o f the d i f fe rent poss ib le answers t o the ques t ions p o s e d . The c h o i c e o f t h e market perspect ive d i f ferent iates b e t w e e n pr ivate indiv iduals and soc ie ty in genera l . D isaggregat ion o f techn iques w h i c h can be used t o evaluate the benef i ts and costs associated w i t h a part icular ac t ion , i nc lude e c o n o m i c , social accounts and env i ronmen ta l impac t assessments [ G o w e n 1985] . Pro ject compar isons have t o be d o n e so as t o inco rpo ra te 'be fo re-a f te r ' and ' w i t h - w i t h o u t ' scenar ios. The t i m e hor i zons fo r va lu ing t h e costs have t o be d e f i n e d , f o r example w h e t h e r f irst year o r annual cash- f lows [ACF's] . Va luat ion measures also n e e d de l inea t ion . H o w d o w e value the i m p o r t a n c e of a pro ject? Shou ld market pr ices, s h a d o w prices, or ' i n - k i n d ' values or w e i g h t s be used [Gi t t inger 1982, W e i s b r o d 1983]? The type o f cos t ing , w h e t h e r average or marg ina l , and finally t he Table IX The answers to s i x questions i n a benefit-cost analysis (Source: Gowen 1985) '. Market perspective Project comparisons Time horizons Valuation measures Costing Decision c r i t e r i a Economic So c i a l Accounts Environmental impacts Before/After With/Without 1st year . Private funds Annual Cash . Shadow prices Flows (ACF's) . In-Kind values Weights Average Marginal . Break-even . Net Benefits . Incremental Net Benefits . Benefit Cost r a t i o . Siitple payback . Discounted payback . Internal rate of return (IRR) . Cost effectiveness 42 cr i ter ia o n w h i c h a dec is ion is taken, all have t o be expl ic i t ly s ta ted. Let us examine the six ques t ions in greater deta i l : 4.1.1 What is the perspective used in valuing benefits and costs? Assuming a market perspect ive is used w h e n an impact assessment is d o n e , t h e n f inancial , e c o n o m i c , social and env i ronmen ta l analyses have t o be carr ied o u t . A f inancial analysis is carr ied o u t o n t h e assumpt ion tha t pr ivate funds are used in the va luat ion of b o t h benef i ts and costs tha t accrue f r o m a p ro jec t . Marke t values represent real (or ad justed fo r inf lat ion) costs b o r n e by the investor . This analysis fu r the r assumes that the market -p lace can ideally d e t e r m i n e the impact o f a p ro jec t . It does n o t , h o w e v e r , account f o r b o t h shor t - te rm and l o n g - t e r m external i t ies that accrue f r o m the p ro jec t . Valu ing the external i ty is in itself a p r o b l e m especial ly w h e n t h e market c a n n o t be the pr ice-set t ing mechan ism. Economic analyses using associated market prices o r ' s h a d o w ' pr ices p e r f o r m that f u n c t i o n . Economic analyses accoun t f o r the shor t t e rm external i t ies arising as a result o f p r o c e e d i n g w i t h a p ro jec t and inco rpo ra te t h e m in to the analysis. Projects have b o t h sho r t - te rm and l o n g - t e r m impacts. Economic analyses appear t o be useful too ls for enhanc ing and d is t r ibu t ing pos i t ive p ro jec t impacts , such as e m p l o y m e n t o r i n c o m e benef i ts , as we l l as t rac ing negat ive external i t ies w i t h a v i e w t o mi t iga t ing t h e m . W h a t happens , however , w h e n a p ro jec t ove r t h e l o n g - t e r m has an impac t o n b o t h the investor and soc ie ty at large, and a cash value c a n n o t be p laced o n this intangible? C o w e n [1985] suggests a f o r m of social a c c o u n t i n g fo r the l o n g - t e r m intangib les that have an impac t o n soc iety at large. T w o ways o f c o n d u c t i n g social a c c o u n t i n g inc lude the use o f cost -e f fect iveness measures and appropr ia te ind ices w h i c h represent an a t t e m p t at p u t t i n g normat i ve w e i g h t s o n the l o n g - t e r m social impacts o f pro jec ts [G i t t inger 1982, M ishan 1983 q u o t e d in G o w e n 1985] . 43 In c o n c l u s i o n , m o s t pro jec ts that involve h u m a n - e n v i r o n m e n t in te rac t ion have an impact o n the b iophys ica l e n v i r o n m e n t . N o d o u b t , the s igni f icance o f an impac t is, t o a large ex ten t a f u n c t i o n o f social values. Negat ive impacts accru ing f r o m a p ro jec t , t he re fo re , need ar t icu la t ion. An env i ronmen ta l impac t s ta tement [EIS], arising f r o m an env i ronmen ta l impact assessment [EIA], is a means f o r ar t iculat ing these impacts . 4.7.2 What type of project comparisons are used? Project compar i sons are usually d o n e t h r o u g h scenar io c rea t ion . The impac t o f a p ro jec t is es t imated t h r o u g h 'be fore-a f te r ' and ' w i t h - w i t h o u t ' scenarios. 'Before-a f ter ' scenarios p ic ture the impact in te rms of w h a t the state of the e n v i r o n m e n t , b o t h b iophys ica l and social , is be fo re the i m p l e m e n t a t i o n o f a p ro jec t and w h a t it is after the p r o j e c t has b e e n ins t i tu ted . ' W i t h - w i t h o u t ' , as the name impl ies , is the state o f t he e n v i r o n m e n t ^ ) , w i t h and w i t h o u t t h e pro jec t . Bo th expl ic i t ly assume a t ime f rame. In fo rmat ion genera ted t h r o u g h these scenarios are useful t o b o t h the investor as wel l as soc ie ty at large. Scenario c reat ion takes in to a c c o u n t all f ou r o f the market perspect ives a l luded t o earlier. 4.7.3 What is the time horizon used in reporting benefits and costs? Three approaches can be iden t i f i ed w i t h respect t o h o w t i m e is c o n s i d e r e d in a benef i t -cos t analysis. A f irst year cost analysis inc ludes on ly the benef i ts and costs fo r o n e year o f p ro jec t o p e r a t i o n . An annual cos t analysis, o n the o t h e r hand , expresses the benef i ts and costs that accrue annual ly ove r the pro jec t ' s l i fe t ime. The th i rd ca tegory , D i s c o u n t e d Cash-Flow [DCF] analyses, d iscounts the values o f benef i ts and costs ove r the l i fe t ime o f the p ro jec t . In essence, it is an annual cost analysis mu l t i p l i ed by a d i s c o u n t rate. The d i scoun t rate varies w i t h factors such as in f la t ion, and risk and uncer ta in ty associated w i t h p r o j e c t i m p l e m e n t a t i o n . In Table X, as discussed later [p. ] , it is seen that mos t analysts have used the Annual ( D i s c o u n t e d ) Cash Flows [ACF's] as a t i m e h o r i z o n fo r r e p o r t i n g benef i ts and costs. 44 4.7.4 How are the benefits and costs valued? Quan t i f y i ng benef i ts and costs in m o n e t a r y te rms involves tak ing t h e f o l l o w i n g steps [ G o w e n 1985; Santerre 1984; Santerre and Smi th 1982; G i t t inger 1982; Davis 1986; A n d e r s o n 1977] : a. Ident i fy ing the benef i ts and costs arising f r o m the physical ef fects o f a p ro jec t . b. Measur ing the m o n e t a r y values of these benef i t and cost streams. c. Put t ing these values i n t o similar and cons tan t m o n e t a r y te rms. d. C o m p a r i n g the p ro jec t ' s benef i t and cos t streams. The benef i ts o f us ing alternative energy t e c h n o l o g y inc lude the revenue genera ted f r o m the sale of the energy and savings f r o m d isp laced fuels. The f i xed costs inc lude capital costs such as those incur red in instal lat ion and interest o n f i xed capital . The recur rent costs inc lude those that accrue f r o m .opera t ion and ma in tenance such as annual fuel bi l ls, repairs, labor , m a n a g e m e n t and admin is t ra t ion . In genera l , there are fou r m e t h o d s o f va lu ing these benef i ts and costs: pr ivate cash values; ' s h a d o w ' pr ices assuming they ref lect social o p p o r t u n i t y cos ts ; in-k ind values represent ing t ransact ions ou ts ide the fo rma l o r cash e c o n o m y , i m p o r t a n t f r o m t h e perspect ive of al ternat ive energy t e c h n o l o g i e s at t h e rural level ; and w e i g h t i n g [Mishan 1983 ] , a h igh ly sub jec t ive p r o c e d u r e , that ref lects t h e value w h i c h soc ie ty places o n a p ro jec t , comparab le t o the pract ice o f p r ic ing in tangib les. 4.7.5 What type of costing concerns the analyst? A n average cos t analysis represents benef i ts and costs per un i t t ime . A marginal cost analysis, o n the o t h e r hand , looks at inc rementa l o r ne t changes in benef i ts and costs fo r a d e f i n e d t i m e p e r i o d . In o t h e r w o r d s , an average cost analysis fo r an enterpr ise p r o d u c i n g w i d g e t s is t h e cost o f p r o d u c i n g w i d g e t s ove r a year o f p r o d u c t i o n , wh i l e a 45 marginal cost analysis is the cost incur red by p r o d u c i n g an addi t ional w i d g e t . In add i t i on , a marginal cost analysis always compares present costs t o s o m e t h i n g eg . , past costs, al ternat ive p ro jec t costs, o r marginal benef i ts vs. marginal costs. From the perspect ive o f appropr ia te energy t e c h n o l o g y , average costs appear l o w as m o s t analyses t o date have s h o w n [see table XII]: Marginal costs , w h i c h are usually absent f r o m these analyses, f luc tua te because o f ex t reme variabi l i t ies in the supp ly o f the pr imary resource fo r the convers ion process. The supply variabi l i ty is a f u n c t i o n of resource availabil ity and techno log i ca l e f f ic iency, whereas d e m a n d , as wi l l be seen later, is a f u n c t i o n o f t echno log ica l adequacy and end-user pre ferences. 4.7.6 What decision criteria are used in accepting or rejecting a project? There are 9 ways t o dec ide w h e t h e r or n o t t o g o ahead w i t h a p ro jec t [ C o w e n 1985; A n d e r s o n 1977; Davis 1986] . These inc lude the f o l l o w i n g . 1. Under tak ing a break-even analysis, w h e n ne t benef i ts equal net costs . 2. D e t e r m i n i n g ne t benef i ts , w h e n benef i ts o u t w e i g h costs. 3. D e t e r m i n i n g the Net Present Value [NPV] , w h i c h is a der ivat ive o f t he ne t benef i ts c o n c e p t . The d i f fe rence b e t w e e n t h e t w o is that t h e NPV considers the d i s c o u n t e d value o f benef i ts and costs as they accrue over t ime , whereas the net bene f i t approach uses d i rec t and n o n - d i s c o u n t e d benef i ts and costs. The p ro jec t goes ahead if the NPV is greater than ze ro . 4. Tabula t ing inc rementa l ne t benef i ts , w h i c h are increases in net benef i ts associated w i t h the p r o j e c t as c o m p a r e d t o the case w i t h o u t t h e p ro jec t . It c o u l d also be used t o c o m p a r e t w o pro jec ts . If the benef i ts accru ing f r o m pro jec t A are greater than those accru ing f r o m B, the incrementa l ne t benef i ts m e t h o d can be used t o select A. 5. D e t e r m i n i n g Benef i t -Cost ratios used t o select p ro jec ts based o n a pos i t ive d i s c o u n t e d rat io o f benef i ts t o costs. Bo th d i s c o u n t e d and u n d i s c o u n t e d bene f i t : cos t ratios have b e e n used as dec is ion cri ter ia. 46 6. Us ing s imple payback techn iques the year in w h i c h the inves tmen t in a p ro jec t is r e c o v e r e d ; it is s e l d o m used as it neg lec ts the t ime value o f m o n e y . 7 . Us ing d i s c o u n t e d payback techn iques , o n the o t h e r hand , f ind the year in w h i c h capital expend i tu res are ba lanced by d i s c o u n t e d benef i ts and are used m o r e o f t e n . 8. D e t e r m i n i n g the internal rate of re turn (IRR) w h i c h is that d i s c o u n t rate w h i c h makes the NPV equal t o z e r o . It is s o m e t i m e s incor rec t ly used in d e t e r m i n i n g feasibi l i ty because some pro jec ts have mu l t i p le IRR's, arising f r o m a range of attract ive d i scoun t rates, all o f w h i c h have d i f fe rent payback possibi l i t ies. 9 . Us ing cost ef fect iveness as a dec is ion cr i te r ion w h e n a s igni f icant p r o p o r t i o n o f t he benef i ts o r costs associated w i t h a p ro jec t c a n n o t be m o n e t i z e d . Cost ef fect iveness measures are general ly used t o p rov ide non-exc lus ive and non-r iva l rous pub l i c g o o d s -those that are benef ic ia l t o soc iety at large. Table X represents a benef i t -cos t analysis carr ied o u t by Liberty Flour Mi l ls f o r the i r b iogas d igester enterpr ise in the Phi l ippines. It is p resen ted t o serve as a typical example rep resen t ing the c o m p l e x i t y and major drawbacks associated w i t h bene f i t - cos t calculat ions d o n e t o date. It is t o be n o t e d that m o s t o f the costs cons idered are average costs w i t h benef i ts der ived f r o m a tabu la t ion o f o p p o r t u n i t y costs such as those arising by subs t i tu t ing b iogas fo r LPG, gasol ine, diesel o i l and electr ic i ty . Again, the absence of a sensit iv i ty analysis shou ld be n o t e d , t o g e t h e r w i t h assumpt ions regard ing techn ica l ef f ic iency, e v i d e n c e d by a lack of d i f fe ren t gas p r o d u c t i o n est imates. The a t t e m p t t o value s ludge as fert i l izer is ano the r major d rawback. Each of these wi l l be d iscussed in detai l in sec t ion 4.2 deal ing w i t h caveats in bene f i t - cos t analyses. T o p o i n t o u t m o r e signi f icant d rawbacks, Table XI shows h o w the six ques t ions addressed in sec t ion 4.1 are answered by recent examples o f bene f i t - cos t analyses fo r b iogas systems. It is a summary o f d i f fe ren t analyses carr ied o u t f o r b iogas systems in India. The use o f pr ivate funds and s h a d o w prices as valuat ion measures is c o m m o n t o all T a b l e .X An example of a B e n e f i t - C o s t a n a l y s i s Il ie . . . j;L§Ji§^^ L's o u r c e: li a r a m b a 1 9 7 8 3 1 T e c h n i c a l i n format i on Types of d i g e s t e r s : T o t a l d i g e s t e r c a p a c i t y : T o t a i. g a s h o 1 c:l er c a p a c i t y : R e t e n t i o n time : lianuve: Wat er r at i o ; lianure i n p u t ; P r o d u c t s output B i oqas ; Dry s l u d g e : L i q u i d s l u d g e C25% l o s s from l e a c h i n g and evapor a t i on J . •: Con t i nuous f e d ; four r ows. 17,600 c u . f t of d i g e s t e r s l u r r y 5000 c u . f t . 215 days. 1: 1.5 by volunie 7500 kg/day 15000 c u . f t . / d a y 155000 cu-m/yr 750 kg/day? 274 t o n s / y r 520 c u , f t . / d a y ; 5370 cu.m/yr L-ost e v a l u a t i o n (OPPORTUNITY COSTS) A. B i o g a s b i o g a s produced per. annum c o s t s s u b s t i t u t e d by Bi ogas 1 . LPG L 1 j. b @ p i „ •:..>/1 h :i 2/ G a s o l i n e i>-.34i @ R .1.5/1".] ' 3. D i e s e l o i l L>.521 & P 1.2/1 J 4. E l e c t r i c i f y subur ban i ^ 1 . 5kwh .P. .35/ kwh J r u r a i [> 1. 5 k w h P .50/ k w h 1 155000 cu.m, F' J. 5 5 '000 125550 . 96720 31375 1 16250 B. Dry s l u d g e '1.. As feed 2741 * P600 ' 2. As f e r t i l i z e r 2 7 4 * P 1 0 0 164400 27400 C. I.... i q u i d s 1 u ci g e a s f e r t i I i z e r 47 TABLE X(CONTD.) 5 3 7 0 c u . i n .* P 5 . 1 4 / c u . m 2 7 6 0 0 3. F i n a n c i a l a n a l y s i s 1» F o r p o l l u t i o n c o n t r o l o r f o r p o 1 i u t i o n c o n t r o1 and B i o g a s a . B i o g a s : 1 5 5 0 0 0 b . S l u d g e t r e a t m e n t u n i t : 5 5 0 0 0 P 2 1 0 0 0 0 2 . f o r p o l l u t i o n c o n t r o l , B i ogas a n d f e r t i 1 i z e r a . B i o g a s p l a n t ': 1 5 5 0 0 0 ta. S l u d g e c o n d i t i o n e r u n i t : 6 5 0 0 0 2 2 0 0 0 0 3 . ' F'or p o l l u t i o n c o n t r o l , B i o g a s , f e r t i l i z e r , a n d f e e d s • a . B i o g a s p l a n t ' : 1 5 5 0 0 0 ta. S l u d g e c o n d i t i o n e r • . u n i t s 6 5 0 0 0 c . f e e d - p r o c e s s i n g u n i t . ; ' 3.5000. 2 5 5 0 0 0 ....U&£:.Lat J ; ;.g e x pj? n s c. * . 1.. F'or p o ' l 1 n t i o n c o n t r o l , o n l y o r p o l l u t i o n c o n t r o l a n d B i o g a s L a b o r ; :; . . 9 4 0 0 i n t e r e s t 177. .' : 3 5 7 0 0 d e p r e c i a t i o n 107. i: 2 1 0 0 0 r e p a i r a n d m a i n t e n a n c e : 3 0 0 0 a d m i n i s t r a t i v e : 12:000 t o t a l . 3 1 3 0 0 F o r p o l l u t i o n c o n t r o l a n d f e r t i 1 i z e r r e p a i r a n d ' m a i rvb e n e n c e : . ' 4 0 0 0 l a b o r i 1 4 1 0 0 i n t e r e s t 17"/.. :' ' 3 7 4 0 0 d e p r e c i a t i o n i 0 % : 2 2 0 0 0 a d m i n i s t r a t i v e s 1 2 0 0 0 t o t a l 8 9 5 0 0 3 . P o 1 1 u t i o n c o n t r o 1 , B i o g a s f e r t i l i z e r a n d f e e d L a b o r 48: TABLE X (CONTD.) i n t e r e s t 177. : 43350 d e p r e c i a t i o n 107. . : 25500. r e p a i r and maintenance : 8000 a d m i n i s t r a t i v e ' : 12000 t o t a l 112350 _•_JMgiL_9.Ee.iiaLtiJig s a v i n g s and r e t u r n on^inyerfment. 1 . B i o g a s works f o r p o l l u t i o n c o n t r o l and B i o g a s a. LPG s u b s t i t u t i o n b. Gasoi i n e c. D i e s e l o i l d. . e l e c t r i c i t y subur ban r u r a l Net o p e r a t i n g s a v i j i g s P 73900 P 44450 P 15620 P 275 P 35150 Investment _E.ec over y p e r i o d 2.3 y e a r s 4.7 y e a r s 13.4 years 6.0 y e a r 1 2. B i o g a s works f o r p o i i u t i o n c o n t r o l , Bioga's and f e r t i l i z e r a. LP 6 sub s t j t IA t i o fl b. G a s o i i ne >::. Di e s e l o i 1 d. e l e c t r i c i t y suburban r u r a l Net o p e r a t i n g ; i : S v i C i a . § _ Investment P 120500 P 91050 P 62220 P 46875 P 31750 1.8 year s 2.4 year s 3.5 year s 4.7 y e a r s 2.7 y e a r s 3. B i o g a s works f o r p o l l u t i o n c o n t r o l , B i o g a s , f e r t i l i z e r and 1i v e s t o c k f e e d . a „ I. PG s u b s t i t ut i on" b. G a s o i i n e c. Di e s e l o i 1 d. e l e c t r i c i t y suburban r ur a i Net o p e r a t i n g savings. P 234650 P 205200 P 176370 P 161025 P 195900 Investment r e c o v e r y p e r i o d 1.1 year s 1.2 year s 1.4 year s 1.6 year s 1.3 y e a r s Not* A l l f i g u r es i n Ph i l l p p i n e p es< 49 Table XI Some attempts at benefit-cost analyses for biogas systems AUTHORS Perspective used in valuing benefits and costs Type of project comparisons Time Horiaon in reporting benefits and costs Type of costing Decision Criteria used Bnatia 1977 Economic Social Before/After 1st year Annual Cash flows Private funds Shadow prices Net Present Value Benefit cost ratio Santerre In Islam et a l ]984 Economic Social Before/After . Annual Cash flows Private funds . Shadow prices Net Present Value Lichtman 1987 (b) Economic Social Before/After Annual Cash flows Private funds Shadow prices Net Present Value Ghate in Pachauri 1980 Economic Social Before/After Annual Cash flows Private funds Shadow prices Benefit cost ratio Net Benefits Net Present value Lichtman 1983 Economic Social Before/After Annual Cash flows Private funds Shadow prices Net Present Value Discounted payback 51 of t h e m . H o w e v e r , L ichtman [1987] observes the p r e d o m i n a n c e of in -k ind values in rural set t ings, w h i c h have n o t been i n c o r p o r a t e d in to past analyses. Aga in , t h e use o f average cos t analyses d o m i n a t e s in all, in d e t e r m i n i n g costs that accrue f r o m a p ro jec t . T o c o n c l u d e , if these analyses are t o focus o n the social perspect ive in va lu ing benef i ts and costs, they n e e d fu r ther e labora t ion us ing a c o m p r e h e n s i v e c o n c e p t u a l f r a m e w o r k such as the six quest ions used in this chapter . Particular i m p o r t a n c e has t o pa id t o the c h o i c e o f cos t ing techn iques and dec is ion cr i ter ia. 4.2 The caveats By q u e s t i o n i n g the assumpt ions o f t he analysis, caveats in bene f i t cost analyses fo r appropr ia te energy t e c h n o l o g y p ro jec ts are e x a m i n e d . These inc lude assumpt ions regard ing the valuat ion o f benef i ts and the n e e d fo r a c c o m p a n y i n g sensit ivi ty analyses. Secondly , by ident i fy ing c o n d i t i o n s in the soc io-cu l tu ra l e n v i r o n m e n t that cause a depar tu re f r o m the assumpt ions the n e e d fo r a m o r e c o m p r e h e n s i v e bene f i t - cos t ca lcu lat ion is p o i n t e d ou t . 4.2.7 The assumptions of the analysis At a general level , there are t w o major assumpt ions that usually under ly all assessments o f a p ro jec t ' s impact : a. That the value o f a p ro jec t t o soc ie ty is the s u m of the values o f t he p ro jec t t o indiv idual m e m b e r s o f that soc iety , and b. That the value o f a p ro jec t t o an indiv idual is t h e a m o u n t that ind iv idual is w i l l i ng t o pay fo r the p ro jec t . W h a t happens w h e n , ceteris paribus the above t w o c o n d i t i o n s d o n o t h o l d : W h e n t h e sum of ind iv idual values are greater than soc ie ty 's values w h e n ' f ree- r iders ' exacerbate this p r o b l e m or w h e r e indiv iduals in soc iety d o n o t expl ic i t ly state the i r preferences? Fur thermore , the larger p r o b l e m associated w i t h the s e c o n d assumpt ion is the d e t e r m i n a t i o n o f c o n s u m e r wi l l ingness t o pay [WTP] , o r wi l l ingness t o pay t o f o r g o t h e p ro jec t . These 52 are areas that n e e d suf f ic ient ar t icu lat ion if an i n f o r m e d and hol ist ic benef i t -cos t analysis is t o be carr ied o u t , part icular ly o n e using a realistic range of benef i ts and costs. A t a m o r e speci f ic level , L ich tman [1987, p.349] po in ts o u t t w o of the m o s t i m p o r t a n t d rawbacks in m o s t of benef i t -cos t analyses o n biogas expe r imen ts in rural areas o f d e v e l o p i n g count r ies : a. They t e n d t o overest imate the benef i ts accru ing f r o m the p ro jec t as a w h o l e by p lac ing a m o n e t a r y value o n the ut i l izat ion o f t h e slurry e f f luent , by us ing associated c o m m e r c i a l fer t i l izer market pr ices. The under ly ing assumpt ion , he adds, is that t h e slurry can b e subs t i tu ted fo r c o m m e r c i a l fert i l izer o r c o u l d be so ld fo r the e c o n o m i c value o f its nu t r ien t c o n t e n t . In reality, h o w e v e r , p o o r farmers c a n n o t purchase fer t i l izer and there is n o e c o n o m i c m e t h o d to date fo r t rad ing biogas slurry. He adds that these benef i ts c o u l d actual ly be an underes t ima t ion if e i ther m e t h o d s t o trade biogas slurry are d e v e l o p e d or, a ful ler re f lec t ion o f the bene f i t is i n c o r p o r a t e d in to benef i t -cos t analyses, fo r example , the bene f i t o f e n h a n c e d c r o p p r o d u c t i o n . b. M o s t analyses carr ied o u t so far p resent • the Net Present Value [NPV] o r the bene f i t : cos t rat io as a static quant i t y and very f ew a t tempts are m a d e t o i nco rpo ra te sensit iv i ty analyses. If a sensit ivi ty analysis is d o n e , argues L ich tman, the range o f benef i ts accru ing f r o m a range of costs c o u l d be i m p r o v e d ( 1 ) . This is part icular ly i m p o r t a n t as b iogas digesters suffer f r o m a w i d e range of pe r fo rmance f luc tua t ions d e p e n d i n g o n the nature o f t he t e c h o l o g y , the c l imate o f the area, the availabil ity o f inpu ts and a host o f o the r factors. In add i t i on t o the specif ic d rawbacks, d isagreements o v e r s h a d o w pr ices, the va luat ion o f benef i ts accru ing f r o m an i m p r o v e m e n t in heal th and qual i ty of l ife and t h e pr ic ing o f benef i ts accru ing f r o m rural energy sel f -suf f ic iency are c o m m o n in a lmost all a t tempts at carry ing o u t a biogas plant bene f i t - cos t analysis. 53 The s i tuat ion is m o r e o r less the same w i t h respect t o solar t e c h n o l o g i e s . A l t h o u g h Myers [1984 ] , Lura [1979 ] , U N E S C O [1983] , UNEP [1984] and o t h e r authors have carr ied o u t bene f i t - cos t analyses of b o t h passive and active solar t e c h n o l o g i e s p r o v i n g the i r viabil i ty, t he t w o major under l y ing assumpt ions , s tated at the b e g i n n i n g of 4 . 2 . 1 , t e n d t o d isprove the viabi l i ty hypothes is as has b e e n s h o w n by expe r imen ts w i t h solar t e c h n o l o g y pro jec ts in Thai land, and Korea (see Chap te r V) . 4.2.2 The socio-cultural environment. T e c h n o l o g y e m p l a c e m e n t has an impac t o n the soc io-cu l tura l e n v i r o n m e n t . Socio-cul tura l re lated impacts are general ly non-quant i f iab le in nature, and hence are n o t general ly i n c o r p o r a t e d in to bene f i t - cos t calculat ions. In a sense, they play a large part in inval idat ing the t w o major assumpt ions under l y ing m o s t benef i t -cos t ca lculat ions: h o m o g e n o u s social systems w i t h similar ut i l i t ies fo r g o o d s and services and, a similar i ty in wi l l ingness t o pay. There are th ree fundamenta l forces in rural Asian vi l lages that d o n o t usually mani fest themselves in a benef i t -cos t analysis and hence are c o n s t r u e d as caveats in past analyses. [Long & O l e s o n 1980; D e u d n e y 1983; B r o w n 1978; L ich tman 1987] . These inc lude: a. The in f luence o f cu l ture and t rad i t i on . b. The in f luence of re l ig ion . c. Polit ical in f luences at t h e vi l lage, local , reg ional and nat ional levels. Table XII is a summary o f t he i m p o r t a n c e of each of these fo rces in the se lec ted count r ies . It is ev iden t that the in f luence of re l ig ion is s t rong in Malaysia and Thai land and this may have an impac t o n h o w benef i ts and costs o f t e c h n o l o g i e s are pe rce i ved . In add i t i on , re l ig ious pract ices have a major part t o play in d e t e r m i n i n g w h e t h e r o r n o t t h e techno log ies wi l l be a c c e p t e d . Polit ical in f luences at t he local , reg ional and nat ional levels Table XII The importance of social influences in benefit-cost analyses (Sources: Chun 1984, Long and Oleson 1982, Morse 1984, Brown 1978, Arthornthurasook 1984, Chirrarattananon 1984, Lichtman 1987, Gupta 1983, Deudney 1983) Factor Korea Malaysia PNG' Philippines Thailand Culture and Tradition *_ *** ** Religion Village and local political influences ** Regional and National political influences  Scale: ** *** Weak Strong importance importance 54 55 may have an in f luence o n cost in f la t ion , a l though n o d i rec t quant i ta t ive cor re la t ion has been d o n e . Cu l tu re and t rad i t ion have a part t o play as an in f luence in inval idat ing calculat ions in bene f i t - cos t analyses. A typ ica l example is the p r e d o m i n a n c e of in -k ind values represent ing t ransact ions ou ts ide the cash e c o n o m y , general ly a n o r m in an Asian rural se t t ing . Benef i t -cost va luat ions have yet t o adequate ly cons ide r such t ransact ions. To c o n c l u d e , acco rd ing t o C h u n [1984] , these forces general ly ampl i fy t h r o u g h inter-vi l lage c o m m u n i c a t i o n and can d ic ta te c o n s u m e r wi l l ingness t o pay in such social set t ings. Faith in quasi- re l ig ious symbo ls f o r m s ano the r s igni f icant cul tural fo rce in Asian vi l lages that can act as an i m p e d i m e n t t o ef for ts at i n t r o d u c i n g n e w t e c h n o l o g i e s . Finally, t he lack o f fo rma l e d u c a t i o n has a ma jo r in f luence o n h o w the e c o n o m i c s o f t e c h n o l o g y , appropr ia te o r o the rw ise , has b e e n and wi l l be perce ived in rural set t ings [Burch 1982, G u p t a 1983] . Rural Asia, in this sense, is n o e x c e p t i o n . Chapter V discusses these fo rces in greater detai l and makes a case fo r the i r cons idera t ion by po l icy -makers pr ior t o the ins t i tu t ion of appropr ia te t echno log ies such as b iogas and solar. S u m m a r y Six ques t ions have t o be answered in d o i n g a bene f i t cost analysis fo r systems such as solar and b iogas. These ques t ions have t o take in to accoun t the perspect ive used in d o i n g the analysis, d i f ferences in p r o j e c t c o m p a r i s o n , t i m e hor i zons , va luat ion measures, cos t i ng techn iques and , f inally, dec is ion cr i ter ia. From an examina t ion o f an analysis d o n e fo r a b iogas p lant in the Phi l ippines and a ca tegor iza t ion o f d i f f e ren t benef i t cost analyses d o n e fo r similar systems in Ch ina and India, it is ev iden t that these analyses are i n c o m p l e t e . Reasons fo r this i ncomp le teness have b e e n a t t r ibu ted t o the relat ion b e t w e e n t h e assumpt ions under ly ing m o s t bene f i t - cos t analysis and the soc io-cu l tu ra l e n v i r o n m e n t , that d o n o t ref lect in past analyses, such as 5 6 re l ig ion , t rad i t ion and e d u c a t i o n . M o r e specif ical ly, t he overes t ima t ion of benef i ts f r o m biogas systems, t h r o u g h incor rec t a t tempts t o value the slurry e f f luent and the lack o f a c c o m p a n y i n g sensit iv i ty analyses fo r bene f i t cost va luat ions, have been p o i n t e d o u t as ma jo r drawbacks in past analyses. 57 CHAPTER V: THE PROBLEMS OF SOLAR AND BIOGAS TECHNOLOGIES " Biogas has received a less enthusiastic response from villagers not only because it is 'rural', but also because of cultural symbolism which gives a lower grade to human and animal discharges". Atal (1984) For t e c h n o l o g i e s such as solar and biogas, t o be t e r m e d appropr ia te , t hey s h o u l d be technical ly , e c o n o m i c a l l y and social ly appropr ia te a long w i t h an adequate level o f ins t i tu t iona l s u p p o r t . The purpose o f th is chapter is t o examine the appropr ia teness o f solar energy harnessing and biogas genera t ion t e c h n o l o g i e s in the rural Asia-Pacific se t t ing under t w o headings: a. Technical and Economic. b. Social and Cultural. 5.1 Technical and Economic appropriateness From a rev iew o f appropr ia te t e c h n o l o g y l i terature, solar and b iogas t e c h n o l o g i e s are technica l ly appropr ia te p r o v i d e d the f o l l o w i n g c o n d i t i o n s are satisf ied [Atal 1984, C h u n 1984, A r t h o r n t h u r a s o o k 1984, L ichtman 1987, M o u l i k 1979, 1983] : a. A greater part of the labor and materials used in c o n s t r u c t i n g and instal l ing these facil i t ies are available local ly. b. These faci l i t ies are des igned k e e p i n g in m i n d a range o f natural factors such as c l imate and natural disasters. c. The t e c h n o l o g i e s d o n o t requi re h igh ly special ized o p e r a t i o n and main tenance. d. Spare parts are available local ly. A similar l i terature rev iew indicates that these t e c h n o l o g i e s are ec onom i c a l l y appropr ia te p r o v i d e d : a. W h o e v e r paid t o install t h e m also pays the recur rent costs accru ing f r o m the o p e r a t i o n o f these instal lat ions. L ichtman [1983, 1987 ] , Bhatia [1977] and Ghate [1979] n o t e that t he lack o f f inance t o cover recurrent costs (as exp la ined in chapter III) accru ing f r o m the main tenance and o p e r a t i o n o f b iogas faci l i t ies in India and Ch ina , is a ma jor cause fo r the state o f disrepair and disuse o f instal led . facil i t ies. It is the re fo re assumed that if an i m p l e m e n t i n g agency subs id ized instal lat ion costs , fu r the r subs id iza t ion , in a p r o p o r t i o n o f recur ren t costs, s h o u l d be p r o v i d e d t o make t h e m economica l l y appropr ia te . 58 b. Secondary energy f r o m the t e c h n o l o g i e s , solar and b iogas, is a f fordab le by the rural dwe l le r w i t h o u t fu r ther subsid izat ion by w h o e v e r paid t o install the t e c h n o l o g i e s . A f fo rdab le , in this instance is a f u n c t i o n of t he i n c o m e o f t h e rural dwe l le r and the d i f fe rence b e t w e e n local ized marginal costs and g loba l average costs o f solar and b iogas energy(1) . 5.7.7 Biogas digesters In a paper en t i t l ed "Re luc tance and select ive acceptance: The Korean case" , C h u n [1984] has discussed the case o f b iogas techno log ies in the Republ ic o f Korea. Both Atal [1984] and C h u n n o t e that leakage f r o m the d iges t ion apparatus, l o w opera t ing tempera tu res in w i n t e r and the lack o f raw materials f o r d igester inputs are t h e three m o s t i m p o r t a n t p r o b l e m s w i t h b iogas d igesters in Korea. As far as e c o n o m i c appropr ia teness is c o n c e r n e d , pr imary research carr ied o u t by Atal [1984] and C h u n [1984] indicate that g o v e r n m e n t f inancial s u p p o r t fo r these digesters was fu l ly w i t h d r a w n after the i r instal lat ion. The pr ice o f 1 c u . m . o f biogas in a typical Korean hamle t has b e e n es t imated at 112.7 w o n [1979; 1US$ = 5 0 0 w o n ] . This, in compar i son t o p r o p a n e 313.5 w o n , kerosene 161.1 w o n , coal b r i que t te 190.1 w o n , and e lectr ic i ty 367.08 w o n , appears t o be af fordable by the vi l lager [see table 3, p.27] . The p r o b l e m is that as technica l inadequacies and marginal p r o d u c t i o n costs increase, w i t h cons tan t d e m a n d t h e actual pr ice that a vi l lager has t o pay b e c o m e s a b o u t 240.6 w o n [Kim 1985] . Biogas is t h e r e f o r e no t as a f fordable in c o m p a r i s o n t o o t h e r energy sources as it may init ial ly appear. Biogas digesters are there fo re no t as economica l l y appropr ia te as initially pe rce ived . A host o f techn ica l p r o b l e m s associated w i t h t h e Thai biogas exper ience have b e e n iden t i f i ed by b o t h A r t h o r n t h u r a s o o k [1984] and Atal [1984 ] . These inc lude p r o b l e m s w i t h leakage f r o m the d iges t ion apparatus, inappropr ia te materials used in the gas ho lde r , techn ica l assistance b e i n g unavai lable, spare parts b e i n g hard t o p r o c u r e , a lack o f raw material inputs and t h e lack o f suf f ic ient water t o c lean o u t t h e d iges t ion pi t . W i t h re ference t o the first c o n d i t i o n fo r e c o n o m i c appropr ia teness , Thai land has n o t phased o u t g o v e r n m e n t s u p p o r t f o r o p e r a t i o n and main tenance of b iogas digesters. In this respect it is 59 still economica l l y appropr ia te . W i t h respect t o the s e c o n d c o n d i t i o n , h o w e v e r , p r o b l e m s w i t h af fordabi l i ty in te rms of the marke t pr ice o f b iogas can b e re lated t o techn ica l inadequacies mak ing biogas appear economica l l y inappropr ia te . Further research needs t o be d o n e t o d e t e r m i n e w h i c h c o n d i t i o n assumes greater i m p o r t a n c e , f o r va l id conc lus ions t o b e d r a w n . A n o t h e r w a y o f v iew ing e c o n o m i c appropr ia teness is in te rms o f instal lat ion costs . The p r o p o r t i o n t o be paid by the vi l lagers requires a o n e - t i m e l ump sum inves tment w h i c h is perce ived as a p r o b l e m in b o t h Korea and Thai land [Atal 1984] . This h igh cost has the t e n d e n c y o f m a k i n g these t e c h n o l o g i e s inappropr ia te at t he outset , even b e f o r e subsidies t o cover recurrent costs are pu t i n to p lace [A r tho rn thu rasook 1984, Mack i l l op 1980, Power 1980] . The Phi l ippines has exper ienced similar techn ica l p rob lems w i t h digesters in rural areas. Leakage f r o m the d iges t ion pi t , substandard materials used as gas ho lders , lack o f spare parts and the lack of raw materials all cons t i t u te technical p r o b l e m s w i t h b iogas d igesters [Maramba 1978] (2) , t h o u g h relatively less, c o m p a r e d t o t h e s i tuat ion in o t h e r count r ies . The l inkage b e t w e e n technica l inadequacies, marginal costs, and alternative energy af fordabi l i ty , is we l l establ ished in the Phi l ippines [ M a r a m b a 1978] . In add i t i on , g o v e r n m e n t s u p p o r t f o r t h e o p e r a t i o n and ma in tenance of these digesters was sporad ic and at p resent is non-ex is ten t . The Maya farm (see C h a p t e r V i ) , h o w e v e r , con t inues t o subsidize recur ren t costs f r o m biogas instal lat ions. Deta i led i n f o r m a t i o n o n the nature and ex ten t and ex ten t o f subs id izat ion was unavai lable t o the a u t h o r at t he t i m e of wr i t i ng this thesis. Table XIII is a s impl i f ied representa t ion o f t he technica l appropr ia teness o f b iogas and solar t e c h n o l o g i e s in the se lec ted count r ies . As is seen, t h e level o f techn ica l appropr ia teness in te rms of the availabil i ty o f labor and materials, adaptabi l i ty and sui tabi l i ty t o c l imat ic factors , ease of o p e r a t i o n , f r e q u e n c y o f ma in tenance and finally, t he availabil i ty o f spare parts appears t o be o p t i m a l in the Phi l ippines. Both Thai land and Korea c o m e 6 0 close t o ach iev ing the level o f technical o p t i m a l i t y necessary fo r ef f ic ient o p e r a t i o n of b iogas digesters bu t c o u l d i m p r o v e in adapt ing the i r t echno log ies t o prevalent c l imat ic factors. Malaysia and Papua N e w Gu inea o n the o t h e r hand , requi re a lo t o f research and c o m m i t m e n t t o achieve the o p t i m a l c o n d i t i o n s o f t h e o t h e r three coun t r ies . Table XIV is a representa t ion o f the level o f e c o n o m i c appropr ia teness us ing the c o n d i t i o n s stated in sec t ion 5.1 ( 3 ) . It is ev iden t that Korea and Thai land p r o b a b l y ' have economica l l y appropr ia te c o n d i t i o n s fo r b iogas techno log ies . The Phi l ippines, having i n t r o d u c e d the pr ivate sec tor t o b iogas t e c h n o l o g y d i f fus ion ef for ts , appears t o be d iverg ing f r o m an economica l l y appropr ia te c o n d i t i o n : f i rst ly, because the pr ivate sec to r wi l l opera te pro f i tab ly on ly if marginal costs approach average costs and second ly , because add i t iona l costs are passed o n t o the rural c o n s u m e r m a k i n g the energy una f fo rdab le . Malaysia and Papua N e w Guinea are lagg ing b e h i n d b o t h in ope ra t i on and ma in tenance o f these t e c h n o l o g i e s mak ing t h e m technical ly inappropr ia te . In add i t i on , strategies t o i m p r o v e c o n d i t i o n s o f a f fordabi l i ty f o r rural users n e e d i m p r o v e m e n t if t h e c o n d i t i o n s d e f i n e d fo r e c o n o m i c appropr ia teness are t o be ach ieved. 5.7.2 Solar Technologies Using the same c o n d i t i o n s d e v e l o p e d t o test the appropr ia te techn ica l and e c o n o m i c c o n d i t i o n s fo r b iogas digesters, it is seen f r o m tables XIII and XIV that solar t e c h n o l o g i e s also have e lements o f technica l and e c o n o m i c inappropr ia teness. The c o n d i t i o n that a greater part o f t he labor necessary fo r t h e instal lat ion, o p e r a t i o n and ma in tenance s h o u l d be available local ly is m e t fo r all t he coun t r ies , bu t the addi t iona l c o n d i t i o n that c o n s t r u c t i o n materials s h o u l d be available local ly, is n o t . This is part icular ly the case w i t h Malaysia w h i c h has e x p e r i m e n t e d w i t h active solar t echno log ies in c o n j u n c t i o n w i t h CNRS of France (see ch.VI) . The i n c o r p o r a t i o n o f passive solar t echn iques , o n the w h o l e , appear t o be a local e f fo r t in the cases of Korea and Thai land. Thai land, again, is i nvo lved in ef for ts t o d i f fuse active t e c h n o l o g i e s in c lose c o o p e r a t i o n w i t h b o t h d o m e s t i c and f o r e i g n Table XIII Technical appropriateness of solar and bioaas technologies (Sources: Lichtman 1983,1987, Arthomthurasook 1984, UNEP 1983, Chun 1984, Kim 1981 , Power 1980, Mackil lop 1980, Maramba 1978) Condition Local labor and Korea Malaysia PNG Philippines Thailand _+++ ++ Natural factors and climate ++ ++ ++ +++ ++ Specialized operation and maintenance +++ ++ ++ ++++ +++ Local spare Darts ++ + + • +++ +++ Scale: +++ +++++ Inappropriate Appropriate Table XIV Economic appropriateness of solar and bioaas technologies (sources: as above in table Xlll) Condition Korea Malaysia PNG Philippines Thailand Operation and maintenance costs borne by agency or firm ++ _±±- _±±±_ No subsidy for marqini cost? ++. +++ ±+ ++ Scale: As in Table Xlll 6 1 6 2 c o m p o n e n t s o f t he pr ivate sector , requ i r ing an i m p o r t a t i o n o f materials, and thus depar t i ng f r o m a c o n d i t i o n o f techn ica l appropr ia teness. Solar t e c h n o l o g i e s are we l l su i ted t o the c l imat ic cond i t i ons o f all t he count r ies in the sample. Korea, w i t h its emphasis o n passive solar t e c h n o l o g y in b o t h u rban and rural areas, satisfies the c o n d i t i o n that the t e c h n o l o g y d o e s n o t need specia l ized o p e r a t i o n and main tenance, in a d d i t i o n , m o s t spare parts fo r these passive t e c h n o l o g i e s are available locally. Malaysia and Thai land depar t f r o m this c o n d i t i o n qu i te s igni f icant ly, w h i l e PNC and the Phi l ippines adhere t o it based o n the i r ef for ts t o i nco rpo ra te rural passive t e c h n o l o g i e s . W i t h respect t o e c o n o m i c appropr ia teness (see ch.VI) , it is clear that Korea satisfies the c o n d i t i o n o f o p e r a t i o n and main tenance subsidies fo r passive t e c h n o l o g i e s . It is n o t clear w h e t h e r this subs id iza t ion results in mak ing this f o r m of energy m o r e a f fordab le , c o m p a r e d t o al ternat ive energy resources, f o r rural dwel lers . The s i tuat ion in Malaysia appears t o be ideal a l t h o u g h its exper imenta l nature. The g o v e r n m e n t covers the cost o f instal lat ion, o p e r a t i o n and main tenance of the exper imenta l p lant that it is se t t ing u p t o make rural energy a f fo rdab le , in c o n j u n c t i o n w i t h CNRS of France. The cases o f P N C , Thai land and the Phi l ippines are no t as clear, b u t i n f o r m a t i o n der ived f r o m the l i terature appears t o suggest that there is adequate subs id iza t ion in Papua N e w Guinea. Thai land and the Phi l ippines w i t h the i r rel iance o n the pr ivate sec tor may satisfy the c o n d i t i o n that o p e r a t i o n and ma in tenance costs are taken care of , bu t w h e t h e r o r n o t th is makes the energy m o r e a f fordab le in the l o n g run , c o m p a r e d t o the alternatives, remains t o be seen. In summary , t h e c o n d i t i o n s d e v e l o p e d fo r assessing the appropr ia teness o f solar and biogas t e c h n o l o g i e s appear s imple in nature. W i t h respect t o e c o n o m i c appropr ia teness , it is n o t to ta l ly adequate t o state that solar and biogas techno log ies are economica l l y appropr ia te if recur ren t costs are subs id ized. The level and type o f subs idy has t o be de f i ned , recur rent costs have t o be es t imated and a cost -shar ing f o r m u l a has t o be d e v e l o p e d if a cost -shar ing strategy fo r recur rent expend i tu res is accep ted . In this thesis, 6 3 h o w e v e r , s imple c o n d i t i o n s have b e e n purpose fu l l y se lec ted in o rde r t o make the c o n d i t i o n s m o r e in tegra ted and comprehens i ve . 5.2 Soc ia l a n d C u l t u r a l a p p r o p r i a t e n e s s From a rev iew of re levant l i terature it is asserted that solar and b iogas t e c h n o l o g i e s are social ly and cul tural ly appropr ia te p r o v i d e d : a. Their use is c o m p a t i b l e w i t h prevalent re l ig ious pract ices; b. Their use does no t imp ly the n e e d t o f o l l o w cul tural ly repugnan t pract ices; c. Their use d o e s n o t imp ly a change in no rma l pat terns of c o m m u n i t y life and social re la t ionships; d . The c o m m u n i t y d e c i d e d t o receive the t e c h n o l o g y , i.e. it was n o t th rus t u p o n t h e m w i t h o u t the i r par t ic ipat ion in the dec is ion m a k i n g process ; e. Polit ically ves ted interests in the c o m m u n i t y are recept ive t o t h e idea of al ternative energy t e c h n o l o g i e s . The compat ib i l i t y o f b iogas digesters w i t h rural re l ig ious i d e o l o g y is i m p o r t a n t . Islam, fo r example , fo rb ids t h e hand l ing o f animal and h u m a n wastes and, as b iogas is p r o d u c e d by the anaerobic f e r m e n t a t i o n o f waste mater ia l , t he acceptance of this t e c h n o l o g y is n o t l ikely t o be very h igh in p r e d o m i n a n t l y Islamic societ ies such as Malaysia and parts o f t he Phi l ippines. In a d d i t i o n , s o m e h igh ly strat i f ied societ ies, even t h o u g h n o t b y any re l ig ious covenan t , abhor t h e hand l ing o f animal and h u m a n wastes as they f i nd it cul tural ly r e p u g n a n t such as the case of Korea [ C h u n 1984, Beers 1982, L ichtman 1987, Dandekar 1979 ] . Dandekar [1979] emphasizes the i m p o r t a n c e of the c o n d i t i o n that no rma l c o m m u n i t y social re lat ionships s h o u l d n o t be h a m p e r e d by t h e dictates o f t he t e c h n o l o g y . This appl ies in part icular t o b iogas t e c h n o l o g i e s . As n o t e d earlier, t h e v o l u m e o f b iogas genera ted d e p e n d s o n c l imate and the a m o u n t o f d u n g available as d igester inpu t . This impl ies that p e o p l e in the c o m m u n i t y have t o adjust the i r n o r m a l cycle of daily activi t ies t o a c c o m m o d a t e the f l o w o f gas f o r c o o k i n g and o t h e r pu rposes . The c o m m u n i t y o f Fateh 6 4 Singh Ka Purwa in India serves as an excel lent examp le t o s u p p o r t th is a rgument (see a p p e n d i x ) . G u p t a [1983 ] no tes that th is c o m m u n i t y had a gas supp ly fo r th ree hours a day d e p e n d i n g o n the v o l u m e of wastes in the d igester . This gas c o u l d be available e i ther d u r i n g the day or at n igh t . People in this c o m m u n i t y ad justed fo r a shor t p e r i o d o f t ime w h e n the d igester was first instal led b u t this w a n e d over the l o n g r u n , and s o o n p e o p l e in the c o m m u n i t y rever ted t o cost l ier b iomass and o t h e r c o m m e r c i a l fuels rather than suf fer the i nconven ience of cl imatical ly i n d u c e d unavailabi l i ty. W h o t o o k t h e dec is ion t o pu t the t e c h n o l o g y in the vi l lage o f t e n has a bear ing o n h o w we l l the t e c h n o l o g y is used . As L ichtman [1987, p.358] no tes w i t h reference t o the Indian Biogas Program: "The arrival of a jeep full of biogas technicians will not enable the technology to contribute effectively to the improvement of rural life. Such outside technicians are not likely to understand the needs of a particular village, to gain the trust of its residents, and to engage in a dialogue with villagers, so that collectively, projects can be designed to truly respond to village needs. If biogas systems are to play a useful role in rural areas, they must be planned by local [people and] organizations whose focus is overall village development". O n the o t h e r hand , Gup ta [1983] notes that the success o f the Fateh Singh Ka Purwa exper ience was d u e t o the par t ic ipa t ion of g o v e r n m e n t , symbo l i zed by technic ians, in a c o m m u n i t y p r o g r a m and n o t the c o m m u n i t y in a g o v e r n m e n t p r o g r a m . It shou ld be n o t e d , h o w e v e r , tha t t h e r e w e r e o t h e r factors that p layed a part in t h e partial success o f this part icular examp le , inc lud ing the ro le o f a char ismat ic m o t i v a t o r w h o was an agent o f t h e g o v e r n m e n t as we l l as the p ro jec t ' s h igh med ia p ro f i le . Finally, ves ted pol i t ica l interests in the c o m m u n i t y have l o n g p layed a major part in all aspects of c o m m u n i t y l i fe: d e c i d i n g w h a t goes w h e r e , w h o gets w h a t and p rov id ing l iaison w i t h g o v e r n m e n t off icials [Harr ison 1983, Beers 1975] . It is o f t e n the case that the s t ronges t pol i t ical in terest in a rural Asian vi l lage is t h e largest l andowner . If t he l a n d o w n e r dec ides t o a d o p t a n e w f o r m of t e c h n o l o g y , the rest of the vi l lage has n o cho ice bu t t o f o l l o w suit . It c o u l d also be that the largest l andowners m o n o p o l i z e the o u t p u t such as 65 biogas s ludge f r o m a c o m m u n i t y based b iogas p lant o r h o t water f r o m a c o m m u n i t y s ized p h o t o v o l t a i c panel by v i r tue of thei r to ta l c o n t r o l ove r vi l lage life. These possibi l i t ies canno t b e ru led o u t as i m p e d i m e n t s t o op t ima l e m p l a c e m e n t and ut i l izat ion o f al ternat ive energy t e c h n o l o g i e s . Table XV is a summary o f t he factors tha t in f luence social and cul tural appropr ia teness o f b o t h solar and biogas t e c h n o l o g i e s , m o r e so b iogas, in rural se t t lements in the Asia-Pacific. As c o u l d be e x p e c t e d , Malaysia di f fers s igni f icant ly f r o m the o t h e r coun t r ies , in te rms o f re l ig ious i d e o l o g y and t h e use o f b iogas t e c h n o l o g i e s . Biogas d igesters in Malaysia w o u l d be social ly and cul tural ly inappropr ia te . Biogas digesters appear t o be cultural ly least repugnant in the Phi l ippines mak ing t h e m social ly and cul tural ly appropr ia te . Rural dwel le rs in Korea and Thai land had relatively m o r e inpu t in d e c i d i n g t o accept the t e c h n o l o g y than rural dwel lers in the o t h e r count r ies . The presence of this i npu t is a fac tor in d e t e r m i n i n g appropr ia teness. W h e t h e r its p resence a lone, i n d e p e n d e n t o f o the r p res ta ted c o n d i t i o n s , def ines social and cul tura l t echno log i ca l compat ib i l i t y remains inde te rmina te . 66 Table XV Social and Cultural appropriateness of solar and bioaas technologies (Sources: Power 1980, Mackillop 1980, Chun 1984, Arthornthurasook 1984, Premnani 1979, Maramba 1978, Lichtman 1987, Buren 1976, Long and Oleson 1983, Islam et.al. 1984, Phil. Min. of energy 1981) Condition Korea Malaysia PNG Philippines Thailar Use compatible with prevalent religion ++++ ++ +++ ++++ +++ Not culturally reouanant +++ ++ +++ +'+++ +++ No change in community life ++ nc nc ++ +++ Community decision +++ nc nc ++ +++ Favorable political climate ++ ++ ++ +++ +++ Scale: _±±_ Inappropriate +++++ Appropriate 6 7 CHAPTER VI: THE ROLE O F G O V E R N M E N T This chapter discusses the role that g o v e r n m e n t s in the Asia-Pacific reg ion have p layed in faci l i tat ing the d isseminat ion of solar and b iogas t e c h n o l o g i e s t o the rural dwel le r . There are t w o fundamen ta l ways in w h i c h g o v e r n m e n t s have in te rvened to faci l i tate this d i f fus ion process. These have b e e n t h r o u g h ins t i tu t iona l s u p p o r t and material suppor t . Inst i tu t ional s u p p o r t can be cohes ive and in tegrated as o p p o s e d t o d i f fuse and f r a g m e n t e d . A di f fuse and f r a g m e n t e d approach has o f t e n been t h e cause of p r o b l e m s in m o n i t o r i n g and evaluat ing g o v e r n m e n t p rog rams , part icular ly w h e n a p le thora o f ins t i tu t ions are invo lved in p r o v i d i n g mater ial s u p p o r t f o r these p rograms. Fur the rmore , d i f fusedness tends t o inf late ope ra t i ng and p ro jec t i m p l e m e n t a t i o n costs. Broadly speak ing, there are three ways that the state can o f fe r material s u p p o r t t o aid t e c h n o l o g y d isseminat ion . This assumes that t h e e c o n o m i c s o f appropr ia te t e c h n o l o g y , f r o m the private sec tor perspect ive , renders it unat t ract ive t o ven tu re capital [Harr ison 1983] (1) . They are: 1 . subsidies. 2. t h e grant ing of favorable tax status. 3 . d i rec t g o v e r n m e n t i n v o l v e m e n t in p rograms and pro jec ts . Al l t h ree wi l l be d iscussed in the c o n t e x t o f s u p p o r t f r o m g o v e r n m e n t s o f the count r ies se lec ted . Sankar [1982] has s u m m a r i z e d the ins t i tu t iona l ar rangements f o r central p lann ing and c o o r d i n a t i o n in the energy sec tor o f t he count r ies se lec ted. Table XVI is a representa t ion o f t he organizat ional f o r m o f the ins t i tu t ions, and an est imate o f the i r level o f i n teg ra t ion w i t h Nat iona l Planning agencies and o t h e r energy p r o d u c i n g and c o n s u m i n g sectors. The table shows that c o o r d i n a t i n g c o m m i t t e e s have a greater role in energy p lann ing , po l i cy 6 8 and m a n a g e m e n t c o m p a r e d to minist r ies. Their in tegra t ion w i t h Nat ional Planning agencies appears t o be sat isfactory bu t these c o m m i t t e e s d o n o t appear t o in tegrate ful ly w i t h o t h e r energy p r o d u c i n g and c o n s u m i n g sectors. TABLE XVI I n s t i t u t i o n a l arrangements f o r c e n t r a l p l a n n i n g and c o o r d i n a t i o n : A l l energy r e s o u r c e s (Source: ADB 1982) COUNTRY O r g a n i z a t i o n a l form I n t e g r a t i o n w i t h N a t i o n a l Other energy P l a n n i n g s e c t o r s agenc i e s M a l a y s i a C o o r d i n a t i n g Committee Average Average Papua New Guinea S i n g l e agency Average Average P h i l i p p i n e s M i n i s t r y Good Average T h a i l a n d Ad-Hoc Committee Below Average Below Average Korea M i n i s t r y Average Average Table XVII indicates ins t i tu t ions in the Asia-Pacific reg ion , charged w i t h the responsib i l i ty f o r carry ing o u t research, d e v e l o p m e n t and d isseminat ion o f solar and biogas t e c h n o l o g i e s . 6.1 The institutions Prior t o a discussion of t he role that ins t i tu t ions can play in d isseminat ing al ternat ive energy t e c h n o l o g i e s , t h e d i f fe rent ins t i tu t ions invo lved and the i r respect ive mandates wi l l be desc r ibed . TABU XVTI Government Institutions pen\ solar/biogas technologies . Korean National Cattle Breeding Laboratory KOREA . Institute of Agricultural Sciences, Office of Rural Development (ORD) . Korea Atomic Research Institute . Advanced Institute of Science MALAYSIA PAPUA NEW GUINEA PHILIPPINES University of Malaya Malaysian Agricultural Research and Development Institute Mega-Chem Bechad, Klang Department of Primary Industry Bagi Agricultural Center Office for Village Development South Pacific Appropriate Technology Foundation Papua New Guinea Institute of Technology Forest Products Research Institute International Rice Research Institute National Science Development Board Da La Salle University of Manila University of the Philippines Ministry of Agriculture National Institute of Science and Technology Bureau of Animal Industry Center for Non-conventional Energy Development , . Kasetsart University THAILAND . National Energy Administration . Sanitation Department, Ministry of Health . Department of Public Welfare . Village Councils (Tambons) . Asian Institute of Technology . King Mongkut's Institute of Technology Sources: Phil. Min. of Energy 1977,1981, National paper Malaysia, 1981, Chun 1984, Del Rosario 1981, Power 1980, Kim. 1985, Arthornthurasook 1984, UNEP 1983, UNIDO 1978, Kim 1981, Chirrarattananon 1984, Eggers-Lura 1979. 7 0 6.7.7 Korea. Biogas genera t ion plants in Korea date t o 1964. They w e r e first i n t r o d u c e d by the Japanese u n d e r the umbre l la of the Korean Nat ional Cat t le B reed ing Laboratory. In 1967, the responsib i l i ty f o r research, d e v e l o p m e n t and faci l i tat ing d i f fus ion t o the rural dwe l le r became t h e responsib i l i ty o f t he Inst i tute of Agr icu l tura l Sciences, g o v e r n e d by the Of f i ce fo r Rural D e v e l o p m e n t [ORDJ. The Inst i tute was pr imari ly respons ib le fo r t h e des ign of ' w e t ' and 'd ry ' style d igesters and b e t w e e n 1969 and 1981 was actively invo lved in the se t t ing up o f these p lants at t h e rural level [ C h u n 1984] , Solar energy, o n the o t h e r hand , has n o t had the same level o f inst i tu t ional back ing . The t w o organizat ions in Korea that have expressed any interest in solar R & D and w h o test solar cooke rs at the rural level are the Korean A t o m i c Energy Research Inst i tu te and the A d v a n c e d Inst i tu te of Science in Seoul [ U N 1985 ] . To summar ize , t h e Min is t ry of Energy and Resources is the ma jo r c o o r d i n a t i n g agency respons ib le fo r p lann ing , p r o v i d i n g d i rec t ion fo r research and d e v e l o p m e n t , and tak ing dec is ions regard ing inves tment and pr ic ing . In all these categor ies, t he Min is t ry has b e e n average ind ica t ing the n e e d fo r i m p r o v e m e n t [ADB 1982] . 6.7.2 Papua New Guinea [PNG] Agenc ies set u p t o faci l i tate rural d e v e l o p m e n t in PNC w e r e , in a d d i t i o n , respons ib le fo r instal l ing and main ta in ing solar and b iogas t e c h n o l o g i e s in rural PNC. The fo rms of t e c h n o l o g i e s ranged f r o m solar hea ted l u m b e r dryers t o fami ly-s ized biogas plants. Rural d e v e l o p m e n t in Papua N e w Gu inea places a great emphasis o n c o o r d i n a t e d act ivi ty b e t w e e n local arid external agencies. External agencies inc lud ing arms of U N E S C O and FAO have s t imu la ted rural educat iona l in f rastructure and agr icul tural p roduc t i v i t y . Some of the local ins t i tu t ions set u p t o w o r k in t a n d e m w i t h mult i lateral and bilateral are 71 descr ibed b e l o w . . The D e p a r t m e n t o f Primary Industry, focuss ing o n the d i f fus ion o f appropr ia te t e c h n o l o g y in to large-scale p lan ta t ion type land ho ld ings [Mack i l lop 1980, Power 1980] . . The Bagi Agr icu l tura l Center , a Chr is t ian miss ion respons ib le f o r coope ra t i ve agr icul ture, coopera t i ve land m a n a g e m e n t and the use o f appropr ia te t e c h n o l o g y t o achieve b o t h [Power 1980] . . The Of f i ce o f Vi l lage D e v e l o p m e n t , set u p in 1976 t o s t imulate pub l ic i nvo lvement . O n e of the strategies f o r achiev ing pub l ic par t i c ipa t ion in vi l lage d e v e l o p m e n t was t h r o u g h an increased use o f appropr ia te t e c h n o l o g i e s f o r at ta in ing a measure o f rural energy sel f -suf f ic iency [Power 1980] . . The South Pacific App rop r i a te T e c h n o l o g y Founda t ion (SPATF), w h i c h was ins t i tu ted t o fulf i l l the so f tware needs o f appropr ia te t e c h n o l o g i e s , in the f o r m of e d u c a t i o n , o n - t h e - j o b t ra in ing and specia l ized technical t ra in ing [Power 1980] . Solar energy , o n the o t h e r hand has on ly b e e n the focus o f research and d e v e l o p m e n t e f for ts o v e r the past 10 years. The main cen te r o f R & D activi ty is in the Papua N e w Gu inea Inst i tu te of T e c h n o l o g y at Port M o r e s b y [ U N 1985] (2) . A major c o o r d i n a t i n g agency is the D e p a r t m e n t o f Minerals and Energy in Port M o r e s b y . Its p e r f o r m a n c e in areas of p lann ing , i nves tment and pr ic ing has been rated average. In a d d i t i o n , the Asian D e v e l o p m e n t Bank no tes that d i rec t ion in research and d e v e l o p m e n t , and h u m a n resource capabi l i ty in the energy sector , has b e e n b e l o w average. These are areas in n e e d of greater ins t i tu t ional e f for t . 6.7.3 Thailand The g o v e r n m e n t o f Thai land launched several p ro jec ts w i t h the ob jec t i ve o f d isseminat ing appropr ia te t echno log ies t o the rural dwe l le r . O n e such examp le , b iogas d igesters, w e r e f irst i n t r o d u c e d in the 1940's by Chinese famil ies l iv ing in the N o r t h e r n 72 r e g i o n . Their advantages w e r e made pub l ic by Kasetsart Universi ty [A r tho rn thu rasook 1984] . Thai Universi t ies have, t o a large ex ten t , remained centers f o r research and d e v e l o p m e n t in al ternat ive energy t e c h n o l o g i e s bu t t ransferred respons ib i l i t y f o r d i f fus ion t o the Nat ional Energy Admin is t ra t ion [NEA] , t he Sanitat ion D e p a r t m e n t o f t he Min is t ry o f Hea l th , var ious agr icul tural o rgan izat ions, the D e p a r t m e n t o f Public We l fa re and var ious o t h e r prov inc ia l and local organizat ions i nc lud ing the Tambons or vi l lage counc i ls . Kasetsart Univers i ty , t he Asian Inst i tute o f T e c h n o l o g y and King M o n g k u t ' s Inst i tu te o f T e c h n o l o g y are th ree academic inst i tu t ions invo lved w i t h solar energy research and d e v e l o p m e n t in Bangkok. G o v e r n m e n t inst i tu t ions that have p layed a part in R & D inc lude the Min is t ry of Agr icu l tu re and Coopera t i ves and t h e Nat ional Energy Admin is t ra t i on [Eggers-Lura 1979] . In ternat ional agencies such as UNESCAP, and t h e U N E S C O reg iona l o f f i ce fo r educa t i on in Asia have also made a s igni f icant c o n t r i b u t i o n in the f ie ld o f so f tware s u p p o r t f o r local inst i tu t ions [UNESCAP 1984 ] . In the o p i n i o n o f off icials at the Asian D e v e l o p m e n t Bank [1982] c o m m i t t e e s such as the Nat ional Energy Admin is t ra t ion in Thai land s h o u l d place greater emphasis o n p lann ing , pr ic ing and p r o v i d i n g d i rec t ion in research and d e v e l o p m e n t . 6.7.4 The Philippines Inst i tu t ional s u p p o r t f o r des ign , research and d e v e l o p m e n t e f for ts in appropr ia te solar t e c h n o l o g i e s have c o m e main ly f r o m the Forest Products Research Inst i tu te , t he In ternat ional Rice Research Inst i tute and the Nat iona l Science D e v e l o p m e n t Board. M a j o r universit ies that have b e e n invo lved in similar e f for ts inc lude the D e La Salle Univers i ty at Man i la and t h e Univers i ty o f the Phi l l ipines at Q u e z o n City. In a d d i t i o n , the pr ivate sec to r has b e e n act ively invo lved in a t tempts t o d i f fuse solar t e c h n o l o g i e s t o suburban c o m m u n i t i e s , o n e example is Project Santa Barbara o n the outsk i r ts o f Cavi te city. The Amer i can in ternat ional s c h o o l at Makat i suppo r t s facil i t ies fo r exper imenta l and educat ive ef for ts in the f ie ld o f 73 passive solar t e c h n o l o g i e s [Eggers-Lura 1979, U N I D O 1978] . Research, des ign and d e v e l o p m e n t e f for ts in b iogas t e c h n o l o g i e s fall u n d e r the ju r isd ic t ion o f the Forest Products Research Inst i tu te and the Min is t ry of Agr icu l tu re [ U N I D O 1978] . A pr ivate f i rm in the agro- industr ia l sec to r Liberty Flour Mi l ls , set up the Maya exper imen ta l fa rm, w h o s e energy needs are m e t pr imari ly t h r o u g h the use o f b iogas t e c h n o l o g i e s . The p lant was c o n s t r u c t e d as an in tegra ted l ivestock, meat process ing and cann ing o p e r a t i o n in the A n t i p o l o Hills o f Rizal Province. Pol lu t ion c o n t r o l was the reason s ta ted fo r encou rag ing investment in the creat ion of this enterpr ise and thus f o r m e d an integral part of p ro jec t p lann ing [Maramba 1978] . A schemat ic d iagram of the nature and logist ics o f the enterpr ise is s h o w n in f igure 9. In a d d i t i o n , o t h e r g o v e r n m e n t ins t i tu t ions that have p layed a part in e n c o u r a g i n g the use o f b iogas inc ludes the Nat iona l Inst i tute o f Science and T e c h n o l o g y [NIST] and the Bureau o f An ima l Industry. The ins t ruc t ion t o set u p biogas d e m o n s t r a t i o n pro jec ts all ove r the Phi l ippines came direct ly f r o m the t h e n President Marcos in 1976. The ob jec t i ve was t o set up b iogas plants in each of the 12 reg ions o f the c o u n t r y w i t h i n six m o n t h s ; o n e in every p rov ince w i th in a year and t h e n o n e in every local i ty [Del Rosario 1981] . M a r a m b a [1978] no tes that t h e Bureau of An imal Industry has p e r f o r m e d we l l ahead of schedu le . O t h e r In ternat iona l ins t i tu t ions such as the In ternat ional Rice Research Inst i tu te (IRRl) at Man i la have p layed an i m p o r t a n t part in p r o v i d i n g so f tware s u p p o r t . O t h e r biogas instal lat ions, b o t h pr ivate and g o v e r n m e n t o w n e d and used fo r b o t h c o m m e r c i a l and n o n - c o m m e r c i a l pu rposes in t h e Phi l ippines are l is ted b e l o w [ M a r a m b a 1978] . a. The Liberty Founda t ion D o r m i t o r y , a p lant that treats sewage f r o m the w o r k e r s ' d o r m i t o r y at the Maya scheme. The 80-100 residents use the b iogas p r o d u c e d f o r c o o k i n g FUEL, FEED, FERTILIZER A N D P O L L U T I O N C O N T R O L T H R U W A S T E RECYCLING. MAYA FARMS L I B E R T Y F L O U R MILLS, INC ANGONO, RIZAL PHILIPPINES. . L o g i s t i c s of the Maya Farm enterprise FIGURE 9 (Source Maramba-1978 p.183) F L O U R M I L L S CROP FIELDS o ' -XCROP RESIDUES I CROP <V y I COMPOST \ RESIDUES COMPOST. BUNK FISHPONDS FEED SWEEPINGS H O G F A R M PORKERS SLAUGHTER HOUSE MEAT & BONE MEAL BLOODMEAL _J . BLOOD RENDERING PLANT CARCASSES t MEAT PROCESSING PLANT BIOGAS r ELECTRIC GENERATORS FOR 1 LIGHT AND POWER. GAS ENGI-NES FOR OEEP WELL PUMPS. GRINDER AND FEED MIXERS, DRYING ROOMS. COOKING AND SCALDING TANKS.GAS REF. GAS BURNER.GAS RANGES GAS LAMPS. SOLIDS BREAD FLOUR, PASTRY CANNED SOUPS HAMS, BACONS AGRO FLOUR, & FLOUR-BASED & CANNED MEAT SAUSAGES & PRODUCTS PRODUCTS. PRODUCTS. MEAT LOAVES 75 the i r meals and i ron ing thei r c lo thes . Biogas f r o m ano the r instal lat ion is used fo r p rov id ing d o r m i t o r y l igh t ing . This is a g o o d examp le of a c o m m u n i t y sized b iogas d igester . b. A backyard p iggery in M u n y o z , a fami ly sized d igester . c. An orchard in Santa Barbara run by Ms . M a n u e l a Maramba , ano the r examp le o f a fami ly s ized d igester . d . A p iggery in Calasiao(3). e. A s laughterhouse in San Juan, a b iogas d iges ter in te rmed ia te b e t w e e n fami ly s ized and c o m m u n i t y s ized. f. The BAI s tock fa rm in Tarlac, a d e m o n s t r a t i o n plant . g . The Pampanga Agr icu l tura l co l lege , a d e m o n s t r a t i o n and research plant . O t h e r m i n o r instal lat ions inc lude the UP Co l l ege of Agr icu l tu re at Los Banos, Laguna, the G o l d e n farm in Santa Mar ia, and t h e p o u l t r y and l ivestock farm at San Pedro . 6.7.5 Malaysia The Univers i ty of Malaya at Kuala L u m p u r and the Malaysian Agr icu l tura l Research and D e v e l o p m e n t Inst i tu te at Selangor are t w o major inst i tu t ions that have been invo lved over the past decade in solar t e c h n o l o g y research and d e v e l o p m e n t e f for ts . A pr ivate f i rm Mega-Chem Bechad, in Klang, has expressed an in terest in the manufac tu re o f solar l u m b e r dryers and c o m m u n i t y sized passive solar t e c h n o l o g i e s . To date n o t m u c h has b e e n d o n e in the f o r m of exper imenta l pro jec ts fo r educat iona l purposes [Eggers-Lura 1979] . Biogas has n o t s t imula ted as m u c h in terest as solar t e c h n o l o g i e s in Malaysia. To date a f e w b iogas exper imenta l plants have b e e n set u p in peninsular Malaysia bu t n o similar e f for ts have b e e n under taken in Sabah. The centers o f research and d e v e l o p m e n t are again the universi t ies, w i t h the Univers i ty o f Malaya at Kuala L u m p u r p laying a large part [ U N I D O 1978] . 76 6.2 Material support Mater ia l s u p p o r t can b road ly be s u b d i v i d e d in to th ree categor ies: a. Provis ion o f subsidies and technica l assistance. b. Grant ing a favorable tax status t o encourage pr ivate sector par t ic ipa t ion in al ternat ive energy t e c h n o l o g y e m p l a c e m e n t and ut i l i za t ion. c. Di rect g o v e r n m e n t i nvo l vemen t in p rograms and pro jec ts . Table XVIII is a summary of t he material s u p p o r t o f f e r e d by g o v e r n m e n t agencies fo r solar and b iogas t e c h n o l o g i e s in t h e Asia-Pacific reg ion . 6.2.7 Korea In the Korean case, the c o n s t r u c t i o n o f b iogas d igesters in rural areas has been great ly faci l i tated t h r o u g h subsidies. C h u n [1984 p.38] no tes that "each vi l lage in the C h e j u d o p rov ince was t o receive the equiva lent o f US$ 350 [220,000 W o n ] fo r the c o n s t r u c t i o n o f fami ly s ized biogas d iges te rs " . They w e r e t o be paid by the local p rec inc t o f the Of f i ce fo r Rural D e v e l o p m e n t [ O R D ] . The local agr icul tural coopera t ives also p layed a part in d isburs ing these subsidies. The subsidies c o v e r e d the to ta l instal lat ion cos t o f a fami ly s ized d igester . A n o t h e r instance of a subs idy was the c o n s t r u c t i o n o f a vi l lage sized b iogas p lant in C h e j u d o p rov ince w h e r e the g o v e r n m e n t cove red the to ta l instal lat ion cost o f abou t 13,600,000 w o n [abou t US$ 27,000] , in 1979. This subs idy was also admin is te red t h r o u g h the O R D . Us ing t h e est imates of t he subsidy pe r h o u s e h o l d p lant and the to ta l n u m b e r of h o u s e h o l d sized plants in the d i f fe rent p rov inces o f Korea, to ta l g o v e r n m e n t expend i tu res in the f o r m o f subsidies du r i ng the p e r i o d 1979-84 appear t o be in the range of US$50,000-100,000. U n d e r this subs id izat ion scheme, o p e r a t i o n and ma in tenance costs w e r e b o r n e by the vi l lagers. As Lee and Kim [1981] n o t e , fu r the r subs id izat ion is war ran ted fo r the success o f these ef for ts , and they r e c o m m e n d that t h e rural d e v e l o p m e n t p r o g r a m be used as a vehic le f o r del ivery o f these fu r ther subsidies. Table XVTII Government i n s t i t u t i o n s , material support and technology dissemination (Sources: Chun 1984, Arthornthurasook 1984, Kim 1981, Power 1980, P h i l . Min. of Energy 1981, Mackillop 1980, LLN 1980, Malaysia Natnl. paper 1981) Country Type of support Solar Biogas Korea Subsidies Favorable tax status . Direct government involvement Malaysia Papua New;Guinea Direct government involvement Direct government involvement unclear Direct government involvement Philippines Favorable tax status Direct government involvement Favorable tax status Subsidies Thailand . Favorable tax status . Subsidies Subsidies Direct government involvement 78 G o v e r n m e n t expend i tu res in the f ie ld o f solar energy are main ly in research and d e v e l o p m e n t . The Korean g o v e r n m e n t suppor ts the d e v e l o p m e n t of passive solar t echno log ies by subs id iz ing the inc lus ion o f passive solar systems in houses . Since 1979, the Min is t ry o f Energy and Resources [MER] has had plans fo r encou rag ing the use o f passive solar t echno log i ca l designs in the c o n s t r u c t i o n o f n e w houses. A c c o r d i n g t o thei r statistics [ q u o t e d in Lee 1981] , there w e r e a b o u t 45 solar h o m e s in 1979. This n u m b e r is p r o j e c t e d t o g r o w t o a b o u t 2400 in . 1 9 8 0 ; 4500 in 1 9 8 1 ; 7000 in 1982; 14,000 in 1983 and 250,000 by 1990. At that rate, solar h o m e s s h o u l d accoun t for ove r 7% of the Korean to ta l h o u s i n g inven to ry in 1990. T o encourage this d e v e l o p m e n t , t h e Min is t ry of Energy and Resources has set up a special hous ing f u n d t o p rov ide loans o f u p t o 9.5 mi l l ion w o n per solar house . They also have plans t o p rov ide tax e x e m p t i o n s fo r solar h o m e bui lders . The r e q u i r e m e n t t o purchase hous ing b o n d s [2 -7% of the pu rchase /cons t ruc t ion pr ice] has been wa ived o n the ins t igat ion of MER if the h o u s i n g un i t has bui l t - in passive solar t e c h n o l o g y . This reduces the initial cost o f instal l ing the solar t e c h n o l o g y by u p t o 30%. These c o n d i t i o n s , however , on ly apply t o n e w hous ing starts in b o t h urban and rural Korea. G o v e r n m e n t act ively suppor ts o n g o i n g research and d e v e l o p m e n t in f o u r areas. These inc lude p h o t o v o l t a i c t e c h n o l o g y appropr ia te t o the Korean e n v i r o n m e n t (1980 b u d g e t : 67 mi l l ion w o n ) solar thermal t e c h n o l o g y fo r b o t h heat ing and c o o l i n g (1980 b u d g e t : 62 mi l l ion w o n ) , standards d e v e l o p m e n t and industr ia l app l ica t ions (1980 b u d g e t : 50 mi l l ion w o n ) and finally, house cons t ruc t i on and i n f o r m a t i o n d issemina t ion p rograms (1980 b u d g e t : 223 m i l l i on w o n ) . In add i t i on t o sponso r ing research at ins t i tu t ions o f h igher t e c h n o l o g y ( 4 ) , t he Korean g o v e r n m e n t is also in teres ted in s t imu la t ing pr ivate sec tor i n v o l v e m e n t in solar t e c h n o l o g i e s . The Korean H o u s i n g C o r p o r a t i o n [KHC] s p o n s o r e d a des ign c o m p e t i t i o n t o select th ree t o f ive p r o t o t y p e solar h o m e s . C o n s t r u c t i o n o f se lec ted designs began in A u g u s t 1 9 8 1 . M a n y 7 9 private sec to r compan ies are actively invo lved in the manu fac tu r ing o f solar panels fo r b o t h the d o m e s t i c market and fo r e x p o r t general ly t o coun t r ies in the M i d d l e East. The g o v e r n m e n t encourages this manu fac tu r ing t h r o u g h the g ran t ing o f e x p o r t subsidies [Korea: Industr ial Structure and Export Subsid izat ion Programs, IBRD 1985] . 6.2.2 Thailand Biogas has, s ince its i n c e p t i o n in Thai land, b e e n sustained by g o v e r n m e n t expend i tu res . As A r t h o r n t h u r a s o o k [1984] no tes , as part o f t h e f ly b r e e d i n g place erad icat ion po l icy o f 1965, the sani tat ion d e p a r t m e n t o f t he Min is t ry o f Hea l th spen t 3000 Baht [abou t US$ 150] in cons t ruc t ing a basic d igester f o r d e m o n s t r a t i o n purposes . At present , subsidies fo r the c o n s t r u c t i o n o f d igesters are n o t as s t ruc tu red as in the Korean case b u t the g o v e r n m e n t invests abou t 2 0 % of the average cost , o f cons t ruc t i ng a family s ized b iogas d igester ( a b o u t 5553 Baht: US$ 225). In t h e b iogas d e v e l o p m e n t plan of 1982-86 the g o v e r n m e n t o f Thai land i n t e n d e d t o s p e n d a b o u t US$ 5,000,000 f o r the c o n s t r u c t i o n of a b o u t 106 vi l lage sized plants and a b o u t 60,000 fami ly s ized digesters. The g o v e r n m e n t also plans t o inc lude the c o n s t r u c t i o n o f b iogas digesters in thei r Rural oriented energy technologies development plan. The g o v e r n m e n t has earmarked a b o u t US$ 18,000,000 fo r i m p l e m e n t i n g this p lan(5). The Thai de lega t ion t o the UNESCAP con fe rence o n n e w and renewab le sources o f energy he ld in Bangkok, Thai land 1 9 8 1 , n o t e d t h e t r e m e n d o u s po ten t ia l f o r the use o f solar t e c h n o l o g i e s in c o m m e r c i a l enterpr ises such as ho te ls , factor ies, hospitals and o the r al l ied services. D o m e s t i c use was also r e c o m m e n d e d fo r n o r t h e r n Thai land. As part o f the solar energy d e v e l o p m e n t p lan, the g o v e r n m e n t funds pro jec ts w h i c h focus o n the d e v e l o p m e n t and d e m o n s t r a t i o n o f t e c h n o l o g i e s such as solar dryers, solar water p u m p s , solar w a t e r d ist i l la t ion uni ts , small scale solar e lect r ic i ty genera t ion and solar re f r igerat ion and a i r - cond i t i on ing . H o w e v e r , speci f ic mone ta ry f igures fo r i m p l e m e n t i n g this plan have n o t b e e n q u o t e d . It has b e e n n o t e d that the g o v e r n m e n t in tends t o f u n d ef for ts a imed at 80 educa t ing b o t h rural and urban dwel lers a b o u t the advantages of solar t e c h n o l o g i e s , as part o f the e f fo r t t o assist t he e m p l a c e m e n t of these t e c h n o l o g i e s . [NEA, Gov t , o f Thai land, 1982] . 6.2.3 Malaysia The Min is t ry o f Energy, T e l e c o m m u n i c a t i o n s and Posts no tes that " th is [b iogas] is o n e f o r m of energy that has hardly b e e n t a p p e d in Malaysia, a l t hough the po ten t ia l t o p r o d u c e such a gas f r o m animal was te is cons ide rab le " . The l ivestock census of 1976 shows the presence of of abou t e i g h t e e n mi l l ion animals capable of p r o d u c i n g a b o u t 1.23 mi l l ion t o n s / a n n u m o f animal waste w h i c h c o u l d potent ia l ly generate a b o u t 1,617,000 cu. f t . o f b iogas. There are f e w g o v e r n m e n t subsidies and expend i tu res , as the g o v e r n m e n t recogn izes tha t "at t he present t i m e , it is n o t economica l l y v iable c o m p a r e d t o o i l , abundan t in Malays ia" [Nat ional paper 1981] . Solar t e c h n o l o g y , o n the o t h e r hand , has genera ted m o r e interest b o t h f r o m the Min is t ry o f Energy, T e l e c o m m u n i c a t i o n s and Posts as we l l as Lembaga Letrik Negaran [LLN] , t h e o rgan iza t ion respons ib le " f o r the p r o m o t i o n o f e lectr ic i ty genera t ion w i t h a v iew t o the e c o n o m i c d e v e l o p m e n t o f peninsular Malaysia and t o secure the supp ly o f such energy at reasonable p r i ces" [Nat .pap . Malaysia 1981] . LLN t o g e t h e r w i t h CNRS of France are c o - s p o n s o r i n g a research p r o g r a m in e lectr ic i ty genera t ion us ing pho tovo l ta i cs . The initial p lanned capaci ty is a b o u t 1 0 0 W and proposa ls are in hand f o r e x p a n d i n g it t o abou t 1KW. The un i t is b e i n g c o n s t r u c t e d and d e v e l o p e d in France and wi l l be tes ted at t he Univers i t i Sains Malaysia at Penang [Nat . pap. pres. at UNCNRSE 1981] . 6.2.4 The Philippines The f ive-year energy p r o g r a m was in i t iated by President Marcos in 1 9 8 1 . The es tab l ishment of t h e Cen te r for N o n - C o n v e n t i o n a l Energy D e v e l o p m e n t was part o f th is p r o g r a m . The Cente r ' s mandate was t o ini t iate pol ic ies, strategies and pro jec ts deal ing w i t h 81 b o t h the des ign and d e v e l o p m e n t o f d i rec t solar radiat ion t e c h n o l o g i e s , w i n d energy, b y c o n v e r s i o n t o fuels, energy p lantat ions, a l c h o h o l f o r mo t i ve p o w e r , use o f surface gas emanat ions and the harnessing o f energy f r o m h o t spr ings. W i t h i n t h e array o f p ro jec ts d e f i n e d u n d e r t h e manda te o f the Center , t h e g o v e r n m e n t in i t iated a b iogas p r o g r a m . The Min is t ry o f Agr icu l tu re in i t ia ted its o w n p r o g r a m Biogas ng Barangay as ano the r means fo r ach iev ing the same e n d in 1-981. The p rog ram 's ob jec t i ve was t o establ ish small-scale, fami ly-s ized biogas digesters na t i onw ide w i t h an average annual o u t p u t o f 91 ,500 cub ic feet . By the e n d o f 1981 the p r o g r a m exper ts an t i c ipa ted the instal lat ion o f a b o u t 625 fami ly-s ized digesters, and w i th succed ing inc rements o f 200 annual ly, t he n u m b e r was an t i c ipa ted t o reach 5425 by 1985. It was es t imated b y the C e n t e r f o r N o n - C o n v e n t i o n a l Energy that by 1985 to ta l b iogas genera t ion w o u l d be a b o u t 507.8 mi l l ion c u . f t , o r 55.71 t h o u s a n d barrels oi l equiva lent . As the g o v e r n m e n t considers b iogas a useful source o f ene rgy fo r rural areas w h e r e l ique f ied p e t r o l e u m gas and electr ic i ty are e i ther cost ly o r unavai lable, init ial subs id izat ion o f p lant instal lat ion was e n c o u r a g e d . W i t h an increase in private successes (see sec t ion 6 . 1 , p.73) b iogas t e c h n o l o g y has b e c o m e c o m m e r c i a l i z e d . The g o v e r n m e n t has the re fo re ins t i tu ted a phasing o u t o f subsidies in favor o f ins t i tu t ing tax concess ions fo r at t ract ing pr ivate sec to r par t ic ipa t ion in b iogas t e c h n o l o g i e s ( 6 ) . Solar t e c h n o l o g i e s , as part o f t he same p r o g r a m , w e r e e x p e c t e d t o c o n t r i b u t e a b o u t 13.2 t h o u s a n d barrels o f o i l equiva lent [ M B O E ] in t h e pe r iod 1981-85 (7). The C e n t e r f o r N o n - C o n v e n t i o n a l Energy has d e m o n s t r a t e d t h r o u g h a series o f surveys and d ispersa l /demonst ra t ion p rograms that solar t e c h n o l o g i e s are b o t h ec onom i c a l l y v iable and social ly acceptab le a m o n g s t urban dwel le rs . Similar d e m o n s t r a t i o n ef for ts are p lanned fo r rural areas [Govt , o f Phi l ippines 1981] Solar energy in the Phi l ippines presents a case o f d i rect g o v e r n m e n t i n v o l v e m e n t as o p p o s e d to the d i sbursement o f subsidies, o r the ins t i tu t ion o f a favorable tax t rea tmen t 82 reg ime . It is an t ic ipa ted that w i t h increased par t ic ipat ion by b o t h users as we l l as c o m m e r c i a l enterpr ises, a subsid izat ion p r o g r a m c o u l d be ins t i tu ted f o r fu r the r d issemina t ion o f solar t e c h n o l o g i e s [Del Rosario 1981 ] . 6.3 Conclusions regarding the role of government In conc lus ion o n e c o u l d surmise that there has b e e n an adequate level o f ins t i tu t ional and mater ial s u p p o r t by g o v e r n m e n t t o faci l i tate the d i f fus ion and subsequen t u t i l izat ion o f solar and b iogas t e c h n o l o g i e s and appropr ia te t e c h n o l o g i e s in general . W h a t is inadequate , h o w e v e r is the level o f cohesiveness necessary, t o exped i te in ter -agency consu l ta t i on , c o o p e r a t i o n and finally, c o o r d i n a t e d ac t ion . It is ev ident f r o m Table XVI that the p l e t h o r a o f ins t i tu t ions d e v e l o p e d , especial ly in Papua N e w Guinea, Thai land, and The Phi l ippines, t o g e t h e r w i t h the i r d i f fuse and o f t e n m u l t i - p u r p o s e mandates , results in a f r a g m e n t e d approach t o po l i cy i m p l e m e n t a t i o n as o p p o s e d t o an in tegra ted ef for t . This f ragmenta t ion c o u l d create p rob lems in the m o n i t o r i n g and rev iew phase, o f pol ic ies and p rograms des igned t o facil i tate the d isseminat ion of al ternative energy t e c h n o l o g i e s t o rural se t t lements in t h e Asia-Pacific. As is seen f r o m the var ious mater ial s u p p o r t e f for ts in a lmost all t he count r ies se lec ted , d i f fe rent f o rms of material s u p p o r t rang ing f r o m subsidies t o d i rec t g o v e r n m e n t i nvo lvement , are o f f e r e d by d i f fe ren t ins t i tu t ions . This w o u l d act t o h i n d e r the a c c o u n t i n g phase of po l i cy and p r o g r a m m o n i t o r i n g and eva luat ion. These t w o factors are the m o s t impor tan t in suggest ions fo r fu tu re t e c h n o l o g y d i f fus ion ef for ts in d e v e l o p i n g coun t r ies and any r e c o m m e n d a t i o n s made have t o bear these p r o b l e m s in m i n d . 83 CHAPTER VII: CONCLUSIONS AND RECOMMENDATIONS " Given present conditions in developing countries, certain potentially 'appropriate' energy technologies have had little success in ameliorating the less than ideal energy condition of rural areas in developing countries. This apparent inappropriateness is due to economic, technical, social, cultural and institutional factors." (Defined hypothesis: p.l) From our preceeding analysis, we can draw the following conclusions. 1. The selected developing countries suffer from debt crises, distributional inequities and deteriorating biophysical environments that affect the availability, affordability and deliverability of commercial primary and secondary energy resources to rural dwellers. 2. One possible solution to rural energy deficiency was thought to have been the adoption of appropriate energy technologies such as solar and biogas. 3. Solar and biogas technologies have elements of technical, economic and social inappropriateness. These factors have received inadequate attention in attempts to diffuse these technologies. 4. From an institutional perspective, governments in the Asia-Pacific region have not responded adequately to the potential energy augmentation function that solar and biogas technologies represent, in rural settlements. In addition, benefit-cost analyses for these 'appropriate' energy systems have been shown to be inadequate. Biogas and solar energy systems, in the countries selected, are faced with inappropriate technical, economic, social and cultural conditions as discussed in Chapter V. Efforts by government to diffuse these technologies are fragmented thus validating the institutional factor contributing to the lack of success. Table XIX categorizes these problems from the micro (village) and macro (regional, national) levels. It summarizes the previous analysis and provides a basis for formulating 84 fu tu re po l i cy ob jec t ives and strategies t o achieve these object ives. The pu rpose o f this chapter is t o p r o p o s e a set o f r e c o m m e n d a t i o n s fo r fu tu re dec is ion-makers in the Asia-Pacific reg ion c o n c e r n e d b o t h w i t h t h e d issemina t ion o f solar and biogas t e c h n o l o g i e s , and w i t h so lu t ions t o t h e rural energy p r o b l e m . TABLE XIX Summary of findings PROBLEMS ISSUES MICRO LEVEL T E C H N 0 L 0 G Y 0 R I E N T E D Economic Technical Soc ial/Cultural Institutional inadequate level of affordability, income, subsidies. insuf f ic ient research, design and development, s k i l l s incompatibility with religion, rural l i f e s t y l e , p o l i t i c a l ideologies, lack of cooperation and coordinat ion. 0 . Availability . imports vs. domestic E R affordability . debt N i deliverability . trade deficits MACRO E E of commercial . shortages in foreign LEVEL R N resources exchange G T y E . 'mega' energy D technologies . technical efficiency . distributional equity . environmental impact 8 5 7.1 Conceptual framework Issues fac ing dec is ion-makers have b e e n p resen ted tak ing t w o t ime hor i zons in to accoun t : a. t h e sho r t - t e rm - 5 - 1 0 years. b. t h e m e d i u m - t e r m - 10-20 years. Policy r e c o m m e n d a t i o n s genera ted s h o u l d g o b e y o n d p r o p o s i n g means t o o v e r c o m e the obstac les t o d i f fus ing solar and b iogas techno log ies and cons ider the coex is tence of hard and sof t t e c h n o l o g i e s at t w o levels: a. t he M i c r o or vi l lage level . b. t he M a c r o o r Regional /Nat ional level . This w o u l d balance c o m m e r c i a l and n o n - c o m m e r c i a l energy supp ly t o rural areas. Table XX i l lustrates pol icy ob jec t ives and strategies fo r the se lec ted coun t r ies . A par t ic ipatory process, is sugges ted as an ef fect ive approach fo r faci l i tat ing t e c h n o l o g y d i f fus ion . In add i t i on t o represent ing s h o r t - t e r m , micro- leve l cons idera t ions , Table XX also addresses m e d i u m - t e r m and macro- level concerns . 7.2 The Short-term 7.2.7 The Micro-level Policies over the shor t - te rm and at the micro- leve l s h o u l d m in im ize social and cul tural i m p e d i m e n t s t o solar and b iogas t e c h n o l o g y i m p l e m e n t a t i o n . O n e possib le means fo r ach iev ing this m in im iza t ion is t h r o u g h a part ic ipat ive process w h e r e grass-roots inpu t is b o t h so l ic i ted and used in dec is ion-mak ing . Rural energy s h o u l d be t rea ted as a rural basic n e e d and a h igh pr io r i ty f o r f inanc ing and i m p l e m e n t i n g ins t i tu t ions. Grass-roots i n p u t in to b o t h po l i cy mak ing ( tak ing a dec is ion t o i m p l e m e n t solar and b iogas t e c h n o l o g i e s in rural areas) and ensu ing po l i cy i m p l e m e n t a t i o n (emp lac ing the t e c h n o l o g i e s in rural areas) c o u l d play a part in d e t e r m i n i n g the n e e d fo r po l icy changes that are c o n g r u e n t w i t h rural 86 Table XX Suirirary of proposed Pol i c y objectives SHORT-TERM MEDIUM-TERM M L I E C V R E O L FOCUS ON ALTERNATIVE TECHNOLOGY IN BASIC NEEDS STRATEGIES MINIMIZE SOCIAL AND POLITICAL CONSTRAINTS TO TECHNOLOGY DIFFUSION AND UTILIZATION PROMOTE CHANGE IN SOCIAL NORMS AND TRADITIONS (eg. through Organizational development and Education) IMPROVE RURAL INCOME . IMPROVE EFFICIENCIES . IMPROVE MACRO-ECONOMIC OF CONVENTIONAL ENERGY CONDITIONS AND THE SETTING TECHNOLOGIES' • . IMPROVE EQUITY IN THE M L DISTRIBUTION OF COMMERCIAL A E . ENERGY TO RURAL AREAS C V R E . MANAGE URBAN ENERGY DEMAND O L BALANCE COMMERCIAL AND NON-CCMMERCIAL ENERGY SUPPLY TO RURAL AREAS 87 end-user goals and ob jec t ives . In the l o n g r u n , this c o u l d save unnecessary expend i tu res for b o t h t h e i m p l e m e n t i n g as wel l as the f inanc ing agencies. Table XXI is a representa t ion of a par t ic ipatory process invo lv ing t h r e e ma jor actors: the i m p l e m e n t i n g ins t i tu t ions, the rural t e c h n o l o g y end-users, and , vo lun ta ry aid agencies, w h o s e ro le has n o t so far b e e n d iscussed in this thesis. Vo lun ta ry aid-agencies have b e c o m e increasingly active in the f ie ld o f t e c h n o l o g y d i f fus ion e f for ts . They have played an active part in p rov id ing so f tware s u p p o r t act ing as a link b e t w e e n i m p l e m e n t i n g inst i tu t ions and the rural end-user [Berg 1984, Adams 1985] . O n occas ion , t hey have concep tua l i zed and run p rograms i n d e p e n d e n t of suppo r t i ve g o v e r n m e n t pol ic ies, such as in the case of rural d e v e l o p m e n t in Papua N e w Gu inea [Power 1980] . They have t w o major advantages over i m p l e m e n t i n g inst i tu t ions in that t h e y have a greater measure o f social and pol i t ical neutra l i ty w i t h o u t biases w h e n c o m p a r e d w i t h local ins t i tu t ions and , o f t e n , d o no t suffer the relative f inancial and h u m a n resource const ra in t p r o b l e m faced by local ins t i tu t ions. A l t h o u g h this relat ive lack o f const ra in t c o u l d be at t r ibutable t o the i r smaller size and n u m b e r , it has b e e n argued tha t such agencies face less constra ints because of the i r clarity of goals, s t reng th o f p u r p o s e and be t te r abil i ty t o c o m m u n i c a t e w i t h the grass-roots [Linear 1985, Berg 1984] . Given the i r po ten t ia l , they c o u l d play a ma jo r part in de f in ing i m p l e m e n t i n g strategies, perce iv ing rural energy needs and rural i n f o r m a t i o n co l l ec t i on . Their i npu t i n to this process, has h o w e v e r , b e e n min imal fo r a var iety o f social and pol i t ica l factors. Bo th Adams [1985] and Linear [1985] in add i t ion t o o t h e r authors such as L ichtman [1983,1987] and Smil [ 1984 ] , have ident i f ied local ins t i tu t iona l pol i t ica l i d e o l o g y and cu l ture as ma jo r factors. A process such as s h o w n in Table XXI w o u l d capital ize o n the resources and neutra l i ty o f fe red by these agencies t o interface b e t w e e n rural end-users and i m p l e m e n t i n g ins t i tu t ions, as we l l as in f o rmu la t i ng ef fect ive fu tu re pol ic ies and p rograms. TABLE XXI A proposed P o l i c y Process j~ENERGY POLICY PROMOTING THE INSTITUTION OF"* , ALTERNATIVE TECHNOLOGIES IN RURAL AREAS N e e" d s L 1? f t xmplertientation riffLEMENTING INSTITUTIONS . Fragmentation . Budgets/Schedules RURAL END-USERS .Social/Cultural Ideology .Income patterns .Basic Needs (Energy) • .- ^ e f f e c t i v e r - - r_-"implementation low input N e e d s implementation fl/ IMxiMEINDED PROCESS ' ' / / .1 T _ _ greater input to p o l i c y formulation . i VOLUNTARY AID AGENCIES . Neutrality — - J -. Resources (Human & Financial){ 00 00 INDEX — > Process Forum Past and present information flow Suggested Inputs to process forum Expected outputs from process forum 8 9 Inst i tu t ions respons ib le for i m p l e m e n t i n g al ternat ive t e c h n o l o g i e s in the Asia-Pacific are character ized by f r a g m e n t a t i o n in e f fo r t (Ch.VI) . This is d u e t o the f o l l o w i n g factors : a. The large n u m b e r o f i m p l e m e n t i n g ins t i tu t ions invo lved w i t h con f l i c t i ng inst i tu t ional goals and ob jec t ives may lead t o inadequate o r con f l i c t i ng p e r c e p t i o n s o f rural energy needs, p re fe rences t e c h n o l o g y preferences, soc io-cu l tu ra l and pol i t ica l o u t l o o k s . b. I m p l e m e n t a t i o n is o f t e n the d o m a i n o f t he po l icy maker w i t h o u t adequate i npu t f r o m the i m p l e m e n t i n g agency regard ing b u d g e t s and schedules. This is s h o w n by b o t h Smil [1984] in the Chinese case and L ichtman [1987] in the Indian o n e . For example , w i t h the ob jec t i ve of d i f fus ing a spec i f ied n u m b e r o f d igesters w i t h i n a spec i f ied t ime in Ch ina and India, cos t over- runs in India and imper fec t c o n s t r u c t i o n in Ch ina , e n s u e d . There seems t o be a re lat ionship b e t w e e n b u d g e t l imi ta t ions, an inadequate p r e c e p t i o n o f costs, and cost over - runs, in the Indian case; and t i gh t schedules and i m p e r f e c t c o n s t r u c t i o n in Ch ina. A similar s i tuat ion exists in the Asia-Pacific. The i n c o r p o r a t i o n o f a par t ic ipat ive process, as s h o w n in Table XIX, shou ld amel io ra te b o t h o f these p rob lems. Firstly, such a process c o u l d s t reng then the interface b e t w e e n the i m p l e m e n t i n g agency and the rural end-user lead ing t o a be t te r unders tand ing o f t he social and pol i t ica l constra ints t o e f fec t ive p ro jec t i m p l e m e n t a t i o n . Efforts c o u l d t h e n be m a d e t o m in im ize these constra ints. Secondly , grass roo ts c o o p e r a t i o n c o u l d result f r o m a process w h e r e agencies respons ib le fo r i m p l e m e n t a t i o n discuss the i r b u d g e t i n g and schedu l i ng constra ints w i t h end-users. From the perspec t ive o f rural end-users , this process has a ma jo r advantage in that it br ings t h e m in to an e m p o w e r e d level o f con tac t w i t h agencies respons ib le fo r the i r we l fare . In o rder t o ensure representa t ion , var ied vi l lage interest g r o u p s and lobb ies s h o u l d be c o n s u l t e d and, mechan isms fo r e n c o u r a g i n g par t ic ipat ion s h o u l d be i n c o r p o r a t e d in to the process. 90 Past ef for ts at i m p l e m e n t i n g these t e c h n o l o g i e s have rel ied o n pol icy o f t e n c o n c e p t u a l i z e d b y dec is ion-makers and bureaucrats w h o have had l i t t le o r n o personal k n o w l e d g e of the special needs and c i rcumstances o f rural dwel lers [Harr ison 1983, Linear 1985, Adams 1985] . In a d d i t i o n , l i t t le or n o a t tempts have been m a d e t o sol ici t pub l i c i npu t i n to f o r m u l a t i n g pol icy . Policies have the re fo re been inadequate . The process sugges ted here di f fers f r o m the t rad i t ional approach in that it is a ' t w o - w a y ' process, w h i c h serves b o t h the func t ions o f act ing as a veh ic le fo r so l ic i t ing pub l ic inpu t i n to po l i cy f o r m u l a t i o n as we l l as fo r i m p l e m e n t a t i o n . The process s h o u l d recogn ize all t h e actors inc lud ing the d i f fe ren t rural end-users, i m p l e m e n t i n g agencies and o f t e n e x o g e n o u s aid agencies. A sel f -explanatory re la t ionship b e t w e e n the three actors is s h o w n in Table XIX. As sugges ted by Islam [1984] it is necessary t o recogn ize the diverse v iews and needs o f rural e n d users, and , the n e e d fo r m o r e cohesive and less f r a g m e n t e d respons ib i l i ty fo r i m p l e m e n t i o n [IBRD 1984] . Processes s h o u l d never theless be s i tuat ion-speci f ic . There are n o n e that wi l l w o r k u n d e r all c i rcumstances. A f e w that w o u l d appear t o w o r k wel l in d e v e l o p i n g count r ies are d iscussed by B o o t h r o y d [1986] and Islam et.al . [1984 ] , Both stress t h e s t ructure o f t he process and a role f o r a process faci l i tator. A de ta i led examinat ion o f these processes, the i r s t rengths and weaknesses, goes b e y o n d the s c o p e of this thesis. 7.2.2 The Macro-level W i t h i n a we l l ar t icu lated po l icy f ramework , the f o l l o w i n g fou r issues conce rn ing t h e c o n t i n u e d use o f c o n v e n t i o n a l t e c h n o l o g i e s n e e d t o be resolved over t h e shor t - te rm. a. I m p r o v i n g techn ica l ef f ic iencies o f ex ist ing conven t iona l energy t e c h n o l o g i e s and establ ish ing n e w ones [IBRD 1983] . b. I m p r o v i n g equ i t y in t h e d is t r ibu t ion o f secondary , commerc ia l and renewab le energy resources t o rural dwel lers t h r o u g h a reappraisal and c o n t i n u o u s assessment o f rural 91 e lect r i f icat ion p rog rams [Pearce and W e b b 1987] . c. I nco rpo ra t i ng d e m a n d m a n a g e m e n t t echn iques in the area of secondary , commerc ia l and n o n - r e n e w a b l e energy resources in urban areas o f t he Asia-Pacific such as energy conserva t ion in t h e var ious sectors o f t he urban e c o n o m y . Urban In ter - fue l subs t i tu t ion is ano the r i tem that has n o t been ful ly c o n s i d e r e d in many d e v e l o p i n g count r ies . The possibi l i t ies o f fuel subs t i tu t ion in the t ranspo r ta t i on , industr ia l , and h o u s e h o l d sectors s h o u l d be g iven greater cons idera t ion [Mu lckhuyse et.al 1985, Siddayao 1985] . It is e x p e c t e d that a cons idera t ion o f these i tems w o u l d in the l ong - run favor b o t h decreases in energy c o n s u m p t i o n in urban areas as we l l as i m p r o v e energy supp ly t o rural areas. It is h o w e v e r n o t sugges ted that there o u g h t t o be a d ivers ion o f c o m m e r c i a l fuels t o rural dwel lers at the expense of urban consumers . A m i d d l e - g r o u n d c o u l d be ach ieved. d . Balancing n o n - c o m m e r c i a l and c o m m e r c i a l energy supply t o rural areas. Processes fo r ach iev ing this balance c o u l d be arr ived at after cons idera t ion o f the issues o f d e m a n d m a n a g e m e n t in urban areas, i m p r o v i n g equ i t y in rural areas and i m p r o v i n g techn ica l ef f ic iencies o f c o n v e n t i o n a l energy t e c h n o l o g i e s . 7.3 The Medium-term 7 . 3 . 7 The Micro-level T w o ma jo r areas o f change are necessary o v e r the m e d i u m t e r m at the m i c r o or vi l lage level in rural se t t lements o f t h e Asia-Pacific r e g i o n . a. The first is a change in social n o r m s and t rad i t ions . The i n c o r p o r a t i o n o f organizat ional d e v e l o p m e n t [ O D ] techn iques c o u l d play a ro le in faci l i tat ing this change [ C u m m i n g s and W e s t 1986] . Organ iza t ion d e v e l o p m e n t techn iques a d o p t a systems approach t o mak ing clusters o f p e o p l e w o r k be t te r at a c o m m o n task. There are several means t h r o u g h w h i c h this e n h a n c e m e n t is achievable. M o s t o f t h e m focus o n e i ther i m p r o v i n g the p e r f o r m a n c e of c o m p o n e n t s w i t h i n the system o r in the in ter- re lat ionships b e t w e e n the c o m p o n e n t s . 9 2 Some mani fes ta t ions o f i m p r o v i n g c o m p o n e n t s inc lude the f o r m a t i o n o f qual i ty circles and sel f - regulat ing w o r k g roups . The remova l of a hierarchical dec is ion-mak ing s t ructure in favor o f a matr ix s t ructure is ano the r way o f i m p r o v i n g in ter- re lat ionships b e t w e e n c o m p o n e n t s o f t he sys tem, to make it w o r k bet ter . A g o o d examp le need ing fu r ther research is vi l lage level se l f - regulat ing w o r k g roups [SRWC's] t o i m p r o v e the e n v i r o n m e n t fo r rece iv ing appropr ia te t e c h n o l o g i e s . C o r p o r a t e exper imen ts in O D have s h o w n tha t the mora le of e m p l o y e e s improves w i t h e m p o w e r m e n t , innovat iveness in task a c c o m p l i s h m e n t is e n h a n c e d , e m p l o y e e t u r n o v e r is r e d u c e d and c o o p e r a t i o n b e t w e e n g roups is e n h a n c e d . It is a possib le that similar techn iques in rural areas wi l l enhance the mora le of the rural dwe l le r and thus min im ize social constra ints as we l l as increase innovat iveness in task a c c o m p l i s h m e n t , t h e r e b y leading t o a h igher level o f ' w o r k sat is fact ion ' . Rural par t i c ipa t ion and c o o p e r a t i o n s h o u l d aid in creat ing an i m p r o v e d e n v i r o n m e n t f o r appropr ia te t e c h n o l o g i e s . b. The s e c o n d is iden t i f y ing means o f achiev ing an increase in rural i n c o m e t o i m p r o v e energy af fordabi l i ty . A l ternat ive strategies t h r o u g h w h i c h this c o u l d be achieved s h o u l d be e x a m i n e d o n e c o n o m i c d e v e l o p m e n t po l icy agendas. These c o u l d focus o n t rad i t iona l approaches t o s t imu la t ing rural d e v e l o p m e n t t h r o u g h j o b creat ion and industr ia l d e v e l o p m e n t p rograms. Al ternat ive energy techno log ies c o u l d themselves be used as means fo r genera t ing e m p l o y m e n t if emphasis is p laced o n t h e ind igenous nature of t he e f fo r t at least at t he m a n a g e m e n t and o p e r a t i o n phases. Finally, e d u c a t i o n plays a ma jo r part in c reat ing a sui table e n v i r o n m e n t f o r n e w t e c h n o l o g i e s . Ways and means of assessing its impac t and r e c o m m e n d i n g e i ther s t ructural o r curr icular changes s h o u l d be o n the agenda o f agencies c o m m i t t e d t o social change in rural areas. 93 7.3.2 The Macro-level At the macro- leve l , it is sugges ted that an i m p r o v e m e n t in the c o n d i t i o n s o f m a c r o e c o n o m i c uncer ta in t ies wi l l have a pos i t ive impact o n the del iverabi l i ty o f c o m m e r c i a l energy t h r o u g h the d e v e l o p m e n t o f i m p r o v e d inf rastructure t o rural areas. This c o u l d play a part in amel io ra t ing the less than ideal rural energy c o n d i t i o n in b o t h t h e Asia-Pacific reg ion and in o t h e r d e v e l o p i n g coun t r ies . A fu r ther d iscussion o n the re lat ionship b e t w e e n an i m p r o v e m e n t in the m a c r o e c o n o m i c se t t ing and an i m p r o v e m e n t in the del iverabi l i ty o f c o m m e r c i a l secondary energy t o rural areas, h o w e v e r , goes b e y o n d the s c o p e o f this thesis. 7.4 Research and Development needs This thesis has iden t i f ied techn ica l , e c o n o m i c , social , cul tural and ins t i tu t ional barriers t o the ef fect ive d issemina t ion of appropr ia te techno log ies , in part icular, solar and b iogas. It has b e e n n o t e d , in the course o f c o n d u c t i n g a l i terature rev iew tha t there are i n f o r m a t i o n gaps in a lmost all areas and certain b road general izat ions had t o be made, in s u p p o r t i n g the hypothes is and in the ensu ing r e c o m m e n d a t i o n s . These i n f o r m a t i o n gaps o c c u r in the f o l l o w i n g areas. 1. Rural i n c o m e - e n e r g y expend i tu re prof i les are unavailable fo r m o s t o f t he count r ies se lec ted . Dated i n f o r m a t i o n was available fo r Thai land and the Phi l ippines. Efforts s h o u l d be m a d e t o carry o u t such surveys o n a m o r e regular basis and the i n fo rma t ion genera ted s h o u l d be m a d e available t o the pub l ic . 2 . Rural social and cul tural prof i les c o u l d be prepared using a b roader set o f ind icators o t h e r than rural e d u c a t i o n , heal th , and availabil i ty o f wa te r and inf rastructure. As part o f t he basic needs a p p r o a c h , mult i lateral agencies s h o u l d establ ish a database o n energy prof i les as a subset o f social and cul tural prof i les, and inc lude i n fo rma t ion o n rural p re ferences fo r energy types, energy c o n s u m e d , rural commerc ia l n o n - c o m m e r c i a l energy 94 ratios, t o faci l i tate focussed research. In conc lus ion , six b r o a d areas o f research and fur ther d e v e l o p m e n t are sugges ted : 1. Research in to i m p r o v i n g the techn ica l ef f ic iencies o f al ternat ive ene rgy t e c h n o l o g i e s . This c o u l d be under taken ind igenous ly in the research and d e v e l o p m e n t centers descr ibed in Chapter V. 2. Research in to means t o i m p r o v e the e c o n o m i c viabi l i ty o f these t e c h n o l o g i e s , tak ing in to accoun t the n e e d f o r sensi t iv i ty analyses, d i f fe ren t dec is ion cr i ter ia and and e labora t ion o n the types of imper fec t ions in rural markets. 3. Research in to means fo r r e m o v i n g ins t i tu t ional barriers to the ef fect ive d isseminat ion and ut i l izat ion o f these t e c h n o l o g i e s using inst i tu t ional task g roups and a m o r e in tegra ted and be t te r accoun tab le app roach . 4. Research in to means t h r o u g h w h i c h rural energy af fordabi l i ty c o u l d be i m p r o v e d . 5. Research in to strategies f o r encou rag ing rural in ter - fue l subs t i tu t ion us ing mora l suasion, taxat ion and regu la t ion ins t ruments fo r m in im iz ing the social, cul tural and pol i t ica l constra ints t o t e c h n o l o g y d i f fus ion . A speci f ic p ro jec t c o u l d be the ar t iculat ion o f means t o encourage subs t i tu t ion f r o m b iomass ( f i r e w o o d ) t o o t h e r renewab le resources such as w o o d waste and bagasse, b iogas, passive solar and w i n d . 6. Research in to p lac ing rural energy d e v e l o p m e n t in the b roader c o n t e x t of in tegra ted rural d e v e l o p m e n t . Rural social and cul tural forces affect all rural d e v e l o p m e n t p rograms and pro jec ts . Measures o f success that e f fect o n e area o f rural l i fe, c a n n o t be d i vo rced f r o m ef fects o n o the r aspects o f rural l i fe. A p ro jec t t o emplace al ternat ive energy t e c h n o l o g i e s has an impac t o n the rural system as a w h o l e , as Dandekar [1978] po in ts o u t . A be t te r place, f o r t e c h n o l o g y d i f fus ion p rograms, may lie in in tegra ted , systems approaches t o facil i tate rural d e v e l o p m e n t . Research in to iden t i f y ing t h e system's c o m p l e x c o m p o n e n t s and 9 5 the i r in ter - re la t ionships may faci l i tate n o t on ly t e c h n o l o g y d i f fus ion bu t in tegra ted rural d e v e l o p m e n t , sat isfact ion o f rural basic needs and u l t imate ly , an i m p r o v e m e n t in the qual i ty o f rural l i fe. As s ta ted at t h e ou tse t o f this thesis, al ternat ive techno log ies can play an i m p o r t a n t ro le in a u g m e n t i n g the supp ly o f commerc ia l energy t o rural areas in d e v e l o p i n g count r ies . Unless steps are taken to r e m o v e the ident i f ied barriers t o i m p l e m e n t a t i o n in fu tu re t e c h n o l o g y d i f fus ion ef for ts , this po ten t ia l wi l l n o t be real ized. In this l ight , po l i cy and p lann ing process r e c o m m e n d a t i o n s are m a d e w h i c h c o u l d serve as a gu ide l ine fo r fu tu re dec is ion-makers in t h e Asia-Pacific r e g i o n , b o t h fo r iden t i f y ing the relevant p r o b l e m s and issues w h i c h create barriers, and fo r p r o p o s i n g ways t o s u r m o u n t t h e m , tak ing in to accoun t the actors, roles and relat ionships in the rural Asian e n v i r o n m e n t . 96 NOTES C h a p t e r ID (1) The excep t ions be ing Malaysia w h i c h is a net o i l e x p o r t e r and Papua N e w Gu inea w i t h its neg l ig ib le energy impor t s . The Asian D e v e l o p m e n t Bank [1982] has classif ied Korea as a c o u n t r y w i t h adequate n o n - c o m m e r c i a l energy t o m e e t rural energy needs bu t yet 5 1 - 7 5 % of its c o m m e r c i a l energy needs is me t t h r o u g h i m p o r t a t i o n . In a similar l ight , Papua N e w Gu inea impor t s a b o u t 7 6 - 1 0 0 % o f its c o m m e r c i a l energy needs . Bo th Thai land and the Phi l ippines are count r ies w i t h inadequate n o n - c o m m e r c i a l energy resources t o service rural areas as impor t s accoun t fo r a b o u t 76 -100% of the i r commerc ia l energy needs. (2) The conc lus ion that p e t r o l e u m p roduc ts are subs id ized in Malaysia is d r a w n f r o m a compara t i ve analysis o f actual and normat ive pr ice indices fo r regular gasol ine and kerosene. Actua l pr ices are constant ly b e l o w normat ive pr ices ind icat ing a level of subs id izat ion by g o v e r n m e n t . In fact, in the case of Indones ia and Malaysia [ADB, 1982, p.156-7] actual pr ices appear t o be decreas ing in compar i son t o increasing no rmat i ve prices. (3) From a similar analysis s u p p o r t e d by data o n taxat ion levels o n gasol ine and kerosene d i rec t g o v e r n m e n t taxes o n p e t r o l e u m p ro duc t s increased f r o m $.045 to $.168 b e t w e e n 1973-76 in the Phi l ippines in c o n j u n c t i o n w i t h an increase in i m p o r t du ty o f a b o u t 5 0 % in the same p e r i o d . In Thai land, d i rect g o v e r n m e n t taxes o n i m p o r t e d p e t r o l e u m p r o d u c t s increased a b o u t 2 0 % in the p e r i o d 1973-79 bu t i m p o r t dut ies in the same per iod increases t h r e e f o l d f r o m $.15 per US Gal lon t o $.54 per US Gal lon. (4) Usually as part o f an energy d e m a n d m a n a g e m e n t e f for t . Typical examples are strategies r e c o m m e n d e d by the W o r l d Bank [Mu lckhuyse 1986 ] , t he U n i t e d Nat ions [UNDNRE 1984] , and the Asian D e v e l o p m e n t Bank [ADB 1982] . (5) Edelman argues that increased costs o f p e t r o l e u m impor ts have p layed a s igni f icant ro le in fue l l ing the d e b t crisis. In his w o r d s [1978, p.15] "The increased costs o f p e t r o l e u m i m p o r t s - a c o m m o d i t y o f t e n crit ically n e e d e d fo r p lanned g r o w t h and d e v e l o p m e n t - has caused severe e c o n o m i c d i s to r t i ons and balance of payments d i f f icul t ies f o r many o f t h e less d e v e l o p e d coun t r i es " . (6) The Asian D e v e l o p m e n t Bank [1985] est imates p o p u l a t i o n g r o w t h in Korea at 1.9% per a n n u m in the p e r i o d 1975-80. in the same p e r i o d p o p u l a t i o n g r o w t h in the Phi l ippines averaged a b o u t 2.8%. B e t w e e n 1970-80, p o p u l a t i o n g r o w t h rates in Papua N e w Gu inea , Malaysia and Thai land averaged abou t 2 . 1 , 2.8 and 2.5% respect ively. (7) Six reasons are o f t e n advanced fo r the ins t i tu t ion o f rural e lect r i f icat ion p rograms: It is s u p p o s e d t o benef i t t he rural p o o r ; it represents a repl icable and we l l - t r ied so lu t i on t o the rural energy p r o b l e m ; it acts as a catalyst t o fu r ther rural d e v e l o p m e n t ; it aids in r e d u c i n g rura l -urban m ig ra t i on ; its p r o l o n g e d usage aids in i m p r o v i n g rural l i teracy, general e d u c a t i o n and rural heal th and the re fo re con t r ibu tes t o rural social c o h e s i o n arid f inal ly, rural e lec t r i f i ca t ion is s u p p o s e d t o p r o m o t e pol i t ica l stabi l i ty. Pearce and W e b b [1987] in associat ion w i t h Nathan [1979 ] , Tend ler [1979] , M c c a w l e y [1983] , Bi jort [1974] , Kessler [1981 ] , G o d d a r d [1981] and Samanta [1983] systematical ly c r i t ique each o f the a b o v e six reasons and have p o i n t e d o u t that n o n e of t h e m are ever achieved t h r o u g h rural e lec t r i f i ca t ion p rograms. (8) In the p e r i o d 1980-83 the Bank m a d e e igh t loans t o Argen t ina , Bangladesh, Ind ia and Portugal fo r the instal lat ion o f secondary conve rs ion and ene rgy ef f ic iency faci l i t ies. The rat ionale fo r invest ing over $938 mi l l ion in u p d a t i n g facil it ies at f ive ref ineries in Ind ia was 97 that , in t h e l o n g run , it w o u l d result in a net f o re ign exchange savings o f over $10 Bi l l ion [1981 pr ices] du r i ng the 12 years o f t he ref iner ies ' l i fe. The t e r m g iven t o it was ' re f inery ra t iona l izat ion ' . (9) The results p resen ted in Figures 7 and 8 are aggregated f r o m data p resen ted in Islam et.al [1984] . They are results o f surveys carr ied o u t by the Nat ional Energy Admin is t ra t ion [NEA] in the case o f Thai land and the Min is t ry o f Energy in the case o f t h e Phi l ippines. In the case of the Phi l ippines, the c o u n t r y was d i v ided 12 reg ions ranging f r o m the l locos reg ion t o W e s t e r n and Centra l M i n d a n a o , and the rat io o f gross annual expend i tu res o f n o n - c o m m e r c i a l t o c o m m e r c i a l energy was d e t e r m i n e d fo r th ree i n c o m e classes: less than 2500 pesos per a n n u m ; 2500-7999 pesos and finally, t hose h o u s e h o l d s earn ing m o r e than 8000 pesos per a n n u m . This i n f o r m a t i o n is p resen ted in f igure 7. The Thai survey was carr ied o u t by d iv id ing Thai land i n t o f ive reg ions N o r t h e r n , Nor th-Eastern, Centra l 1 , Central 2, and the Southern reg ion . Ne t annual expend i tu res o n c o m m e r c i a l and n o n - c o m m e r c i a l energy w e r e t h e n f o u n d fo r f ive i n c o m e classes: b e l o w 25000 Baht per a n n u m ; 25000-48000 Baht; 49000-72000 Baht; 73000-120,000 Baht and f inal ly, over 120,000 Baht per a n n u m . Figure 8, h o w e v e r , aggregates this i n f o r m a t i o n fo r all the reg ions and presents net annual n o n - c o m m e r c i a l and c o m m e r c i a l energy expend i tu res by d i f fe rent i n c o m e g roups . (10) In this con tex t , s tudies have a t t e m p t e d t o establ ish a cor re la t ion b e t w e e n hoard ing and the pr ice o f commerc ia l fuels in rural India. T h o u g h n o t d i rec t ly appl icable t o the count r ies se lec ted in t h e s c o p e of this thesis, certain general conc lus ions , inc lud ing a pos i t ive cor re la t ion b e t w e e n hoa rd ing and the pr ice of fuels, can be reached. C h a p t e r III (1) This is n o t c o m p l e t e l y t rue , as assessment p rograms in the U n i t e d States have s h o w n that solar t e c h n o l o g i e s d o have negat ive impacts o n the b iophys ica l e n v i r o n m e n t in terms o f f r o n t - e n d eco log ica l costs [B ron fman 1983] . (2) Some authors [Harr ison 1983, U N E S C O 1984] claim that s ludge is actually e n h a n c e d by u p t o 5 0 % c o m p a r e d t o the fer t i l izer [NPK] value o f app ly ing wastes d i rect ly as manure . (3) Some g o o d examples are d i f fe ren t mod i f i ca t ions p r o p o s e d by D e m u y n c k et.al [1984] m o r e f r o m the u rban , European c o n t e x t . UNEP [1981,1983] have sugges ted s o m e m o d i f i e d designs fo r d e v e l o p i n g count r ies . (4) This popu la r i t y is we l l d e m o n s t r a t e d by the case of b iogas d igester e m p l a c e m e n t in the Phi l ippines and Korea, see chapte r V. C h a p t e r IV (1) In fairness it is w o r t h w h i l e n o t i n g that Bhatia [1977] , M o u l i k [1978,1982] and Santerre [1984] have made a t tempts t o incorpora te a sensit iv i ty analysis in to the i r benef i t -cos t va luat ions. W h a t L ichtman suggests, is that the range of benef i ts and costs c o u l d be i m p r o v e d u p o n thus pa in t ing a m o r e realistic p ic tu re o n w h i c h a dec is ion can be based. C h a p t e r V (1) Marg ina l costs are used in this ca tegory as o p p o s e d t o average costs because o f the vu lnerabi l i ty o f solar and b iogas t e c h n o l o g i e s t o c l imate and natural factors such as the availabil i ty o f d u n g and o the r soc io-po l i t i ca l constra ints w h i c h act t o increase costs o f p r o d u c t i o n and subsequent ly , the pr ice o f energy fo r h o u s e h o l d consumers [Dunker ley 1980, Taylor 1981] . 9 8 (2) G u p t a [1983] no tes that t w o p r o b l e m s c o u l d arise in the co l l ec t i on o f inpu ts fo r t h e d igester ; variabil i ty in the m a g n i t u d e of inputs d u e t o natural factors , and n o n - c o o p e r a t i o n o n the part o f t he vi l lagers unless adequate ly rewarded . The Maya Farms serves as an example w h e r e adequate rewards (wages) are paid t o the vil lagers fo r co l l ec t ing inputs fo r the d igester as c o m p a r e d t o a g o v e r n m e n t run and f inanced instal lat ion such as Fateh Singh ka Purwa, in Ind ia ; see append ix . (3) The cri teria are: tha t w h o e v e r pays t o install t h e m also pays t o opera te and mainta in t h e m o r pays a p r o p o r t i o n of recurrent costs ; t he energy o u t p u t is a f fordab le w i t h o u t fu r ther subsid izat ion t o o f fse t increasing marginal costs. Chapter VI (1) This is no t always cor rec t , g iven the success o f pr ivate ventures in the Phi l ippines; see p. 74-75. (2) N o specif ic i n f o r m a t i o n was available a b o u t the status o f b iogas digesters in Papua N e w Guinea. It is assumed f r o m the appropr ia te t e c h n o l o g y l i terature that inst i tu t ional e f for ts focussed o n d i f fus ing basic t echno log ies t o the rural dwel le r , in PNG, have b e e n far f r o m satisfactory [Mack i l l op 1980, Power 1980] . (3) Mr . Jose Parayno instal led the plant in his p iggery at Calasiao o n compla in ts f r o m his ne ighbors o f a fou l o d o r f r o m his p iggery . A f ter its instal lat ion, no tes M a r a m b a [1978, p. 146] "h is ne ighbors s t o p p e d c o m p l a i n i n g . N o w it is he w h o compla ins o f t o o many visi tors t o see his b iogas p lan t " . (4) The best examples o f ins t i tu t ions w h e r e research is s p o n s o r e d are the Korea Inst i tu te o f Energy and Resources [KIER] and the Korean Inst i tute o f Science and T e c h n o l o g y . (5) Biogas techno log ies , u n d e r this p lan, wi l l share the to ta l out lay w i t h o t h e r proposa ls such as the es tab l i shment o f vil lage w o o d l o t s , i m p r o v e d rural furnaces and boi lers, t h e es tab l ishment of rural energy centers and i m p r o v e d rural pyro ly t ic processes [UNESCAP 1981] . (6) The exact m a g n i t u d e o f the subsidies was unavai lable. From l i terature o n the Maya farms ' exper ience it is es t imated that the g o v e r n m e n t subs id ized the enterpr ise for a b o u t 3 0 % of its instal lat ion expenses. As far as tax concess ions are c o n c e r n e d , a pr ivate l im i ted c o m p a n y is en t i t led t o a h igher rate o f deprec ia t ion o n capital costs (abou t 17%) fo r these techno log ies than fo r o thers ( a b o u t 1 2 % ) ; t hey pay a l o w e r rate o f i n c o m e and capital gains taxes f o r these enterpr ises than fo r o t h e r similar small-scale ones . (7) I n fo rma t ion as t o w h e t h e r this ob jec t i ve was fu l f i l led o r n o t is unavailable at t he t i m e o f w r i t i n g this thesis. 99 REFERENCES A d a m s P., S o l o m o n L, 1985 In the name of progress: The underside of foreign aid T o r o n t o : Timesavers. A n d e r s o n L.G., S e t t l e R.F., 1977 Accounting for benefits and costs over time in Benef i t C o s t Analysis: A pract ical gu ide Vancouver : Sch. o f C o m m . & Regnl. p i n g , ( m i m e o . ) A r t h o r n t h u r a s o o k T., S k u l b h r a m P., 1984 Investing the wastes: The Thai case, in Biogas:  Social response t o a t e c h n o l o g i c a l i nnova t ion Bangkok : UNESCO pub lns . T h e A s i a n D e v e l o p m e n t Bank 1982 Asian energy problems: An ADB survey, S ingapore: Praeger. 1985 Statistics on developing member countries [DMC's] S ingapore: Praeger. A t a l Y. *1984 Filth as fuel and fertilizer: Sociology of Biogas in Biogas: Social response t o  a techno log ica l i nnova t ion . Bangkok: UNESCO pub lns . B a r n e t t A. et.al. 1982 Rural energy and the third world. O x f o r d : Pergamon. Beers B.F. 1975 The far east: A history of Western impacts and eastern responses (1830-1975) NJ: Prent ice-Hal l . B e n d e r T. 1978 Appropriate technology and beyond, in S tepp ing s tones. NY: Schocken . B e r g S. 1984 Experiments in self-help: Lessons from Indian villages. S t o c k h o l m : SIDA pub l icns . B h a t i a R. 1977 Economic appraisal of Biogas units in India: A framework for Social Benefit Cost analysis E c o n o m i c and Polit ical W e e k l y vo l .12 , #32 /33 [Special n u m b e r 1977] p .1503-1518. 1980 Energy and rural development: An analytical framework for Socio-Economic assessment of Technological and Policy alternatives, m i m e o . Hawai i : RSI, East-West cen ter B o o t h r o y d P., 1986 Draft handbook on the community planning process, m i m e o . Vancouver : Schoo l o f C o m m u n i t y and and Regional Planning, Univers i ty o f Brit ish C o l u m b i a . B i j o r t A., 1974 Socio-economic effects of rural electrification in Kenya, in Power t o t h e  People : Rural e lect r i f icat ion sec tor summary r e p o r t (ed . Wasserman J., & D a v e n p o r t  V., 1974) W a s h . D . C : USAID pub lns . B r o n f m a n B., 1983 Assessing the validity of public involvement in social impact assessment: The Community Based Technology Assessment Program [CBTAP]. in Public i nvo l vemen t in Social impact assessment [ed . Daneke, 1983] . C o l o r a d o : W e s t v i e w . B r o w n N.L., (ed) 1978 Renewable energy resources and rural applications in the developing world. C o l o r a d o : W e s t v i e w . 100 B u r c h D., 1982 Appropriate technology for the third world: Why the will is lacking. The  Ecologist V o l . 6 , # 2 , p.52-67. B u r e n A.V. 1979 A Chinese Biogas manual L o n d o n : In te rmed ia te T e c h n o l o g y pub lns . B u t l e r E., et.al 1980 Bolivia: Rural electrification Project impact evaluat ion repo r t # 1 6 W a s h . D . C : USAID. C h a t t e r j e e M. (ed.) 1981 Energy and the environment in developing countries. NY: John Wi ley & Sons. C h i r r a r a t t a n a n o n S., 1984 Analysis of rural energy development in Thailand in Rural energy t o m e e t d e v e l o p m e n t needs: Asian vi l lage approaches ( e d . Islam M . N . , 1984) Boulder : W e s t v i e w . C h u n Kyung-soo 1984 Reluctance and selective acceptance: The Korean case, in Biogas:  Social response t o a t echno log i ca l i nnova t ion Bangkok: UNESCO pub lns . C e c e l s k i E., G l a t t S., 1982 The role of rural electrification in development W a s h . D . C : Resources f o r t h e Future inc. C u m m i n g s T., W e s t M., 1985 Organization development and change. NJ: Prent ice-Hal l . D a l y H. 1977 Steady state economics San Francisco: W . H . Freeman & C o . D a n d e k a r H. 1980 Gobar gas plants: How appropriate are they? in Economic and Polit ical  week ly sp.iss. 1980 p. 887-893. 1978 Rural development: Lessons from a village in Deccan Maharashtra, India. unpubl is . PhD thesis. Los Ange les : UCLA. Das V.C., 1986 The urban informal sector in developing countries. U n p u b l . PhD thesis: SCARP: UBC. D a v i s H.C, 1986 Draft Benefit-Cost analysis manual m i m e o . Sch. o f C o m m u n . and Regnl. Planning: UBC. D e l R o s a r i o A.V., 1981 The Philippines' five-year energy program: 1981-85. Energy vo l .6 , # 8 , p .789-800. D e u d n e y D., F l a v i n C , 1982 Renewable energy: The power to choose NY: N o r t o n A V o r l d w a t c h . D u n k e r l e y J., 1980 Domestic energy consumption by the poor in developing countries in_ In ternat ional ene rgy studies (ed . Pachauri R.K., 1980) N.Delh i : John W i l e y and Sons. D u n k e r l e y J., C e c e l s k i E., Ramsay W., 1979 Household energy and the poor in the third world. W a s h . D.C: Resources f o r the Future. E d e l m a n D.J., 1978 The energy crisis and the development prospects of low income countries: A macroeconomic simulation, unpub l i s . PhD thesis, Corne l l Universi ty. Eggers-Lura A., 1979 Solar energy in developing countries. L o n d o n : Pergamon press. 101 E l - H i n n a w i E., Biswas M.R., Biswas A .K. , (eds.) 1983 New and renewable sources of energy D u b l i n : Elsevier. E l - H i n n a w i E., Biswas A .K. , 1981 Renewable sources of energy and the environment D u b l i n : Elsevier. F e s h a r a k i F., B r o w n H., et.al 1982 Critical energy issues in Asia and the Pacific. Energy pro jec t : Resource Systems Ins t i tu te , East W e s t Center . Boulder : W e s t v i e w press. F r i e d m a n J., 1966 Regional development: A case study of Venezuela. Los Angeles: UCLA press. G h a t e P .B . , 1980 Biogas: A decentralized energy system. A pilot investigation project. Economic and Polit ical W e e k l y , sp.iss. p. 1132-36. 1980 Biogas: A pilot project to investigate a decentralized energy system in In ternat ional energy studies (ed . Pachauri R.K, 1980) N.Delh i : John W i l e y and sons. G i t t i n g e r B. 1982 Economic analysis of agricultural projects. Ba l t imore: Johns Hopk ins Univ. Press. G o d d a r d P., et.al 1981 The product is progress: Rural electrification in Costa Rica Project  impact evaluat ion repor t # 2 2 W a s h . D . C : USAID pub lns . G o w e n M.M., 1985 Renewable energy assessments: An energy planner's manual Hawai i : RSI, East W e s t Cen te r . G r i f f i t h - J o n e s S., Ha r v e y C , (eds) 1985 World prices and development. B rook f ie ld , Vt: G o w e r pub lns . G u p t a R., 1983 Are community scale biogas plants a feasible proposition? W H O journal vo l . 10, # 2 , 121-124. H a r d i n G., 1968 The tragedy of the commons Science 162, p. 1243-48. H a r r i s o n P., 1983 The third world tommorrow: A report from the battlefront in the war against poverty NY: Pilgrim p u b l . H i r s c h m a n A . O . , 1978 The strategy of economic development NY: N o r t o n . 1979 Towards a new strategy for development NY: Pergamon. 1984 Getting ahead collectively: Grass-roots experience in Latin America. NY: Pergamon. H u g h e s B.B., 1985 Energy in the global arena: Actors, values, policies and futures D u r h a m : D u k e Univ. Press. I n t e r n a t i o n a l Bank f o r R e c o n s t r u c t i o n a n d D e v e l o p m e n t [IBRD] 1979 Prospects for traditional and non-conventional energy sources in developing countries Staff W o r k i n g papers [SWP] # 3 4 6 W a s h . D . C : IBRD pub lns . 1979 Energy issues and policy options in developing countries SWP # 3 5 0 . W a s h . D . C : IBRD pub lns . 102 1980 The design of organizations for rural development projects - A progress report SWP # 3 7 5 . W a s h D . C : IBRD pub lns . 1980 Energy in developing countries W a s h . D . C : IBRD pub lns . 1981 Energy, international trade and economic growth SWP # 4 7 4 . W a s h . D . C : IBRD pub lns . . . . . . 1981 Global energy prospects SWP # 4 8 9 . W a s h . D . C : IBRD p u b l n s . — - - 1981 Adoption of agricultural innovations in developing countries - A survey SWP # 4 4 4 . W a s h D.C.:IBRD pub lns . 1982 Decentralized energy development in China: The state of the art. SWP # 5 3 5 . W a s h . D . C : IBRD publns . 1983 Prospects for food production and consumption in developing countries SWP # 5 9 6 . W a s h . D . C : IBRD p u b . 1983 The energy transition in developing countries W a s h . D . C : IBRD pub lns . — « 1984 Mobilizing renewable energy technology in developing countries: Strengthening local capabilities and research. W a s h . D . C : IBRD pub lns . 1985 China: The energy sector, annex 3 t o Ch ina: L o n g - t e r m d e v e l o p m e n t issues and o p t i o n s W a s h . D . C : IBRD pub lns . 1985 Agricultural trade and food policy: The experience of five developing countries SWP # 7 2 4 . W a s h . D . C : IBRD pub lns . — - 1985 Issues in the appraisal of energy projects for oil importing developing countries [OlDC's] SWP # 7 3 8 . W a s h . D . C : IBRD pub lns . 1986 World development Report W a s h . D . C : IBRD pub lns . . — 1987 World development Report W a s h . D . C : IBRD pub lns . I n t e r n a t i o n a l L a b o r O r g a n i z a t i o n 1986 Bulletin of Labor statistics. Geneva: ILO. 1982 Basic needs and government policies in Thailand. S ingapore : M a r u z e n Asia. 1981 Income distribution, Structure of the economy and employment: The Philippines, Iran, Korea and Malaysia L o n d o n : C r o o m , H e l m pub lns . 1986 Training needs: Assessment and Monitoring Geneva: ILO. Islam M.N., B a j r a c h a r y a D., M o r s e R., Sa n t e r r e M.T., S m i t h K. 1984 Rural energy to meet development needs: Asian village approaches C o l o r a d o : W e s t v i e w . I l l i c h I., 1974 Energy and equity L o n d o n : Calder and Boyars pub lns . Jones A., 1983 Beyond industrial society: Towards balance and harmony The Ecologist vo l . 13, # 4 , p .141-8. 103 Kauber P., 1982 Technology and the quest for rational control The Ecologist vo l . 12, # 2 , p.87-93. Kessler J., 1981 Ecuador, Rural electrification Project impact evaluat ion # 2 1 W a s h . D . C : USAID pub lns . Kim I.J., 1985 Imported inflation and the development of the Korean economy in W o r l d  pr ices and d e v e l o p m e n t (eds. Gr i f f i th Jones, Harvey). Brook f ie ld Vt . : G o w e r pub lns . Kim Y.H., 1981 Korea: A country case study in Energy in the t rans i t ion f r o m rural  subsis tence (eds. W i o n c z e k , Foley et.al, 1981) C o l o r a d o : W e s t v i e w . Kim J.D., Lee H., 1981 Prospects for' renewable energy resources in Korea Korea Inst i tu te o f Energy Resources, occassional papers Lichtman R., 1983 Biogas systems in India W a s h . D . C : VITA pub lns . . . . . . 1987 Towards the diffusion of rural energy technologies: Some lessons from the Indian Biogas program W o r l d d e v e l o p m e n t v o l . 15, # 3 , p.347-74. Linear M., 1985 Zapping the third world: The disaster of foreign aid L o n d o n : Pluto press. Lovins A., 1976 Energy strategy: the road not taken Foreign Affairs Fall [23 ] . Mackillop A., 1980 Reactions against alternative energy The Ecologist v o l . 10, #6 /7 , p.200-3. 1980 Economic considerations for renewable energy projects in developing countries in In ternat ional Energy studies (ed . Pachauri R.K, 1980) N.Delh i : John Wi ley and sons. Mandel D., Wasserman )., 1980 The Philippines: Rural electrification Project impac t  eva luat ion # 1 5 W a s h . D . C : USAID pub lns . Maramba F.D., Maramba M., Parayno )., 1978 Biogas and waste recycling: The Philippine experience Mani la : Regal pub lns . Matthews W.H. 1981 Energy and environmental issues in developing countries in Energy  and the e n v i r o n m e n t in d e v e l o p i n g count r ies (ed.Chat ter j i M . , 1981) ; Chichester : John W i l e y and sons. Mccawley P., 1978 Rural electrification in Indonesia: Is it Time? in Power t o the p e o p l e :  Rural e lect r i f icat ion summary repo r t (eds. Wasserman & Davenpor t , 1978) ; W a s h . D . C : USAID pub l icns . McGee T . 1985 Cities: Theatres of accumulation Vancouver : UBC press. Meynell P.J., 1976 Methane: Planning a digester NY: Schocken. Mishan E.J., 1983 Cost-Benefit analysis NY: Praeger pub lns . . — 1983 ( Q u o t e d in G o w e n , 1985) Morse R.A., Chapman D.K., (eds.) 1984 Issues in East Asian energy development C o l o r a d o : W e s t v i e w . 104 M o u l i k T.K., 1978 Biogas systems: Appropriate technology for meeting rural energy needs in India? Indian Inst, o f M a n a g e m e n t [ I I M ] - A h m e d a b a d : Cen te r fo r M a n a g e m e n t in Agr icu l tu re . M o u l i k T.K., Srivastava U.K., 1975 Biogas plants at the village: Problems and prospects in Gujarat Cen te r fo r M a n a g e m e n t in Agr icu l tu re [ C M A ] m o n o g r a p h # 5 0 , I I M - A h m e d a b a d . M o u l i k T.K., Srivastava U.K., S h i n g i P.M., 1978 Biogas systems in India: A socio-economic evaluation Indian Inst, of M g t . - A h m e d a b a d : Cente r f o r m a n a g e m e n t in Agr icu l tu re . M u i c k h u y s e D. 1986 Industrial energy rationalization in developing countries W a s h . D . C : IBRD publns . M y e r s J.D., 1984 Solar applications in industry and commerce NJ: Prent ice-Hal l . N a i s b i t t J., 1986 Megatrends NY: N o r t o n . N a t i o n a l P a p e r [ M a l a y s i a ] 1981 United Nations conference on new and renewable sources of energy Kuala Lumpur : M in is t ry o f Energy, T e l e c o m m u n i c a t i o n s and Posts. ( W o r k i n g paper) 1981 United Nations conference on new and renewable sources of energy, Nairobi, 7987 N a t h a n R.R., 1979 Contribution of AID documentation to the evaluation of rural electrification projects in Rural e lect r i f icat ion in d e v e l o p i n g count r ies ( q u o t e d in Pearce D., W e b b M. , 1987). N a t i o n a l Energy A d m i n i s t r a t i o n [NEA], T h a i l a n d 1981 Thailand papers on energy Paper pres. at UNESCAP c o m m i t t e e o n natural resources. Bangkok, Thai land. 1982 Report on the 1980 energy survey: Part I, Household energy consumption. 1982 Patterns of energy supply and demand in Thailand O f f i c e of T e c h n o l o g y A s s e s s m e n t [OTA] 1978 Application of solar technology to today's energy needs vol.1 W a s h . D . C : USOTA. P a c h a u r i R.K., (ed.) 1980 International energy studies N .De lh i : John W i l e y and sons. P e a r c e D., W e b b M., 1987 Rural electrification in developing countries: A reappraisal Energy Policy v o l . 15, # 4 , p .327-40. P h i l i p p i n e s M i n . of Energy 1978 Philippine rural energy resource and consumption survey in Rural energy t o m e e t d e v e l o p m e n t needs ( e d . Islam M . N . , 1984) . C o l o . : W e s t v i e w . P o w e r A. 1980 The Papua New Guinea experience in Techno log ies fo r rural d e v e l o p m e n t p roceed ings o f an exper t m e e t i n g . Brussels: UNESCO publ icns . P r e m n a n i P., 1980 Situation, Problem encounter and scenarios in fulfilling energy demand in Thailand in In ternat ional ene rgy s tudies (ed . Pachauri R.K., 1980) ; N .De lh i : John W i l e y and sons. 105 S a m a n t a B., S u n d a r a m A., 1983 Socio-economic impact of rural electrification in India W a s h . D . C : Resources fo r the Future. S a n t e r r e M.T. 1984 Financial and resource analyses of anaerobic digestion (biogas) systems in Rural energy t o m e e t d e v e l o p m e n t needs (ed . Islam M . N . , 1984) ; Co lo . : W e s t v i e w . S a n t e r r e M.T. , S m i t h K.R., 1982 Measures of appropriateness: The resource requirements of anaerobic digestion (biogas) systems. W o r l d D e v e l o p m e n t v o l . 10, # 3 , p. 2 3 6 - 6 1 . S c h u m a c h e r E.F., 1973 Small is beautiful NY: Harper and Row. 1978 Technology with a human face f r o m S tepp ing Stones: A p p r o p r i a t e t e c h n o l o g y and b e y o n d NY:Schocken S inger H . , 1977 Technologies for basic needs ILO: Geneva. S m i l V. , 1984 Energy and agriculture in selected countries, Amer ican Scientist. Svensson T., S o r e n s o n P., 1983 Indonesia and Malaysia: Scandinavian studies in contemporary society Surrey: Biddies. T a y l o r R.P., 1981 Rural energy development in China W a s h . D . C : Resource fo r the Future. T e n d l e r J., 1979 Rural electrification: Linkages and justifications Program evaluat ion  d iscuss ion paper # 3 W a s h . D . C : USAID pub lns . T o f f l e r A. , 1980 Future Shock NY: Del l Books. T o n n i e s F., 1955 Community and association Berl in: RKP pub lns . UNEP 1981/2 Report on the Nderu Biogas scheme: Nderu village, Kenya. Na i rob i : UNEP pub lns . UNESCAP 1984 Handbook of statistics on the Asia-Pacific. Bangkok: UNESCAP. U N I D O 1978 Technology for solar energy utilization. NY: U n i t e d Nat ions . U N D N R E [ N a t u r a l r e s o u r c e s a n d e n e r g y d e p t . ] 1984 Energy planning in developing countries. Suffolk: O x f o r d Univ . p ress /Uni ted Nat ions . U N E S C O 1980 Technology assessment: review and implications for for developing countries. Paris: UNESCO pub lns . V a n d e n b u r g W . , 1986 Knowing technology as if people mattered M a n - E n v i r o n m e n t systems v o l . 16, #2 /3 , p.69-75. 1986 Society as the soci-cultural milieu of traditional technologies Man-Env i ronmen t systems vo l . 16, #2 /3 , p.76-82. 1986 The structure of technology and its relation to society M a n - E n v i r o n m e n t systems p.83-92. 1986 The human implications of the universalization of modern technology 1 0 6 M a n - E n v i r o n m e n t systems p.93-102. V a n d e r Ryn S., 1975 Appropriate technology and state government O f f i ce o f App rop r i a te  T e c h n o l o g y Sacramento : Calif. V i k s n i n s G.J., 1980 Financial deepening in ASEAN countries. H o n o l u l u : Pacific Forum. V o g e l e r I., d e Souza A.R. , (eds. ) 1980 Dialectics of third world development NJ: A l lanhe ld , O s m u n & C o . pub lns . W o r l d C o m m i s s i o n o n E n v i r o n m e n t a n d D e v e l o p m e n t 1987 Our Common future NY: Praeger. W y a n t F.R., E l l i o t t V.L. , 1984 Energy in the Korean economy in Issues in East Asian  energy d e v e l o p m e n t (eds. M o r s e and Chapman) C o l o . : W e s t v i e w . 107 APPENDIX: TWO CASE STUDIES IN INDIA Experience w i t h b iogas digesters in India re inforces the conc lus ions o f this thesis. The pu rpose o f th is append ix is t o e laborate o n t w o case studies o f b iogas i m p l e m e n t a t i o n in India. These descr ip t ions are based o n ques t ionna i res sent t o key in fo rmants in India and the U n i t e d States. The in fo rmants w e r e : a. The Tata Energy Research Inst i tute [TERI], N .De lh i ; b. The Cen te r fo r Science and the Env i ronment , N.De lh i ; c. Prof. H. Dandekar, The Universi ty o f M i c h i g a n ; d . Vo lun teers in Technical Assistance [VITA], Wash .D .C . Based o n thei r pe rcep t ions , the f o l l o w i n g t w o case studies in India are desc r ibed . A case of failure: Community scale plants in Fateh Singh Ka Purwa The name o f t h e p ro jec t was the " I m p l e m e n t a t i o n o f b iogas plants in Fateh Singh Ka Purwa" . The b iogas p lant in this instance was a c o m m u n i t y s ized ' w e t ' p lant . The plants were set u p by the Planning Research and A c t i o n Div is ion [PRAD] o f t he G o v e r n m e n t of U t ta r Pradesh w i t h f inancial s u p p o r t f r o m UNICEF. The stated ob jec t i ve fo r the p r o j e c t was t o i m p r o v e the vi l lage's energy supp ly t h r o u g h the instal lat ion o f t h e d igester . Con tac t b e t w e e n the p r o p o n e n t s o f t h e t e c h n o l o g y and the rural rec ip ients was 'g rass- roots ' par t ic ipatory in nature w i t h the p ro jec t managers act ing as faci l i tators in vi l lage g r o u p s . State and local level p lanners were invo lved in p lann ing and i m p l e m e n t a t i o n . Planning and i m p l e m e n t a t i o n o c c u r e d over the p e r i o d 1978-79. In N o v e m b e r t h e f irst c o m m u n i t y scale p lant w e n t in to o p e r a t i o n w i t h a s e c o n d o n e f o l l o w i n g in January 1979. The dec is ion t o i m p l e m e n t the t e c h n o l o g y was taken f o r the vi l lagers: consu l ta t ion t h r o u g h 'g rass- roots ' par t ic ipa t ion was seen as a means o f l eg i t ima t ion . The vi l lagers, h o w e v e r , appeared c o n v i n c e d o f the obv ious advantages that biogas t e c h n o l o g y rep resen ted . In 108 add i t i on , a local g o v e r n m e n t o f f icer p layed a ma jo r part in faci l i tat ing acceptance. Financial s u p p o r t f o r the p r o j e c t was p r o v i d e d t h r o u g h a c o o r d i n a t e d e f for t o f PRAD and UNICEF. The vil lagers in Fateh Singh Ka Purwa recogn ized that b iogas was safer than the f i r e w o o d and kerosene that they norma l l y used. Init ial ly, t hey r e c o g n i z e d its impor tance in p r o v i d i n g a m o r e conven ien t way o f c o o k i n g , as it was easier t o b u r n than f i r e w o o d . O t h e r benef i ts tha t b iogas rep resen ted initially was in the o p e r a t i o n o f agr icul tural mach ines and the use of slurry fert i l izer w h i c h was d is t r ibu ted t o each h o u s e h o l d in p r o p o r t i o n t o the a m o u n t o f d u n g that the h o u s e h o l d c o n t r i b u t e d . Problems w i t h using biogas began w h e n the vil lagers r e c o g n i z e d that they w o u l d have t o substant ial ly change their l i festyles t o a c c o m o d a t e the f l o w o f b iogas fo r c o o k i n g purposes. O f t e n , t h e gas w o u l d be p r o v i d e d at 3 a.m. i n c o n v e n i e n c i n g a major i ty o f t he vi l lagers. A n o t h e r reason for fai lure that G u p t a [1983] decr ibes is that t h e vil lagers fe l t t hey w e r e n o t consu l ted at every stage of the pro jec t . They d i d n o t unders tand w h y they had t o pay fo r the gas w h e n they had always had the d u n g free o f charge. As c o m b u s t i n g biogas requires special burners w h i c h they c o u l d n o t a f fo rd , t hey d i d n o t buy t h e m and instead improv i sed , c reat ing fu r ther p r o b l e m s in gas f l o w . The e n d resul t is that b o t h the plants lie in a state o f disrepair . A case o f l i m i t e d success : D h a n a w a s The set t ing u p o f b iogas plants in Dhanawas f o r m e d part o f an in tegra ted rural d e v e l o p m e n t e f for t . Biogas i m p l e m e n t a t i o n and i m p r o v e d c o o k i n g stoves f o r m e d a ma jo r part o f t he energy related d e v e l o p m e n t e f for t in the vi l lage. The Tata Energy Research Inst i tu te in c o n j u n c t i o n w i t h the Haryana State g o v e r n m e n t in i t iated t h e scheme. The name o f the p ro jec t was "The i m p l e m e n t a t i o n o f b iogas in vil lage Dhanawas" . The d e f i n e d ob jec t i ve fo r the p ro jec t was t o d e v e l o p the vi l lage by instal l ing b iogas plants as part o f 109 an in tegra ted rural energy p lann ing and d e v e l o p m e n t p r o g r a m . C o n t a c t b e t w e e n p r o p o n e n t s o f t he t e c h n o l o g y and rural recip ients was of a "g rass - roo ts " par t ic ipatory nature. The Haryana state g o v e r n m e n t and TERI w e r e the p r ime actors in the p lann ing e f for t . Planning was in i t ia ted in February 1985, and i m p l e m e n t a t i o n is o n g o i n g . To date, six fami ly sized ' w e t ' d igesters have b e e n instal led. There are o n g o i n g ef for ts t o train masons, ex tens ion worke rs and p lant o w n e r s . The dec is ion t o i m p l e m e n t the techno log ies was taken f o r the vil lagers by TERI and the Haiyana state g o v e r n m e n t . It c o u l d be c o n s t r u e d that consu l ta t i on w i t h the vi l lagers was a means fo r l eg i t ima t ion . The vil lagers h o w e v e r had an o p p o r t u n i t y t o see a p ro jec t in the vi l lage and acceptance was, t o a large ex ten t , faci l i tated t h r o u g h the d e m o n s t r a t i o n ef fect . From the ques t ionna i re admin is tered by TERI, it is seen that the vil lagers r e c o g n i z e d that b iogas was easier t o bu rn c o m p a r e d t o f i r e w o o d and the re fo re represented a greater c o n v e n i e n c e in c o o k i n g . They re jec ted the n o t i o n that it was m o r e economica l and that it saved t i m e . In a d d i t i o n , t hey recogn ized that b iogas was no t cheaper than o ther fuels bu t rep resen ted a g o o d mechan ism fo r d ispos ing was te . A posi t ive d e m o n s t r a t i o n e f fect and an e n h a n c e d fami ly status appear t o be major factors faci l i tat ing the instal lat ion of fami ly s ized digesters f r o m a social perspect ive . There are p r o b l e m s w i t h b iogas in Dhanawas vi l lage. Further analysis o f the ques t ionna i re po in ts o u t that m o s t o f the vi l lagers recogn ize the bad o d o u r a r o u n d the plant and this fact , t o a certain ex ten t , u n d e r m i n e s the impor tance that biogas represents as a source of fue l . In add i t i on , c o o k i n g o n d u n g - f u e l represents a modera te cul tural and psycho log ica l barr ier w h i c h in part, def ines the sui tabi l i ty o f that f o r m of t e c h n o l o g y t o that part icular e n v i r o n m e n t . Technical p rob lems w i t h these digesters are mainly leakage and l o w tempera tu res in w i n t e r w h i c h affect gas p r o d u c t i o n . There is h o w e v e r , n o lack o f skills t o opera te and main ta in t h e plant. 110 In response t o the ques t ionna i re sent , TERI exp l ic i t ly r e c o g n i z e d that t h e ready availabil i ty o f al ternat ive fuels represents a ma jo r obstac le t o the a d o p t i o n of d igesters in Dhanawas. In a d d i t i o n the h igh cost o f instal lat ion, part icular ly w i t h o u t subsidies, requires a o n e t ime l u m p - s u m inves tment p u t t i n g it o u t o f the reach o f t h e very p o o r in Dhanawas and s u p p o r t i n g the a r g u m e n t made in the thesis regard ing e c o n o m i c appropr ia teness o f the d igesters. Finally, ano the r very i m p o r t a n t reason f o r the less than ideal a d o p t i o n o f b iogas digesters is less than ideal was because i n f o r m a t i o n a b o u t such innovat ions was no t p roper l y d i f fused t o rural dwel lers . 

Cite

Citation Scheme:

        

Citations by CSL (citeproc-js)

Usage Statistics

Share

Embed

Customize your widget with the following options, then copy and paste the code below into the HTML of your page to embed this item in your website.
                        
                            <div id="ubcOpenCollectionsWidgetDisplay">
                            <script id="ubcOpenCollectionsWidget"
                            src="{[{embed.src}]}"
                            data-item="{[{embed.item}]}"
                            data-collection="{[{embed.collection}]}"
                            data-metadata="{[{embed.showMetadata}]}"
                            data-width="{[{embed.width}]}"
                            async >
                            </script>
                            </div>
                        
                    
IIIF logo Our image viewer uses the IIIF 2.0 standard. To load this item in other compatible viewers, use this url:
http://iiif.library.ubc.ca/presentation/dsp.831.1-0097836/manifest

Comment

Related Items