Rajasthan priorities indoor air pollution, larsen

1. Household Air Pollution Control in Rajasthan
Bjorn Larsen,
Environmental Economist, Independent Consultant
Rajasthan Priorities conference, Jaipur June 8-10
Email: BL@bjorn-Larsen.com
Web: http//Bjorn-Larsen.com

2. Household air pollution (HAP) control – why important?
• Huge global problem
•Nearly 2.6 million people died globally in 2016 from harmful exposure to
PM2.5 air emissions from household use of solid fuels such as wood, of
which 800 K deaths in India
• Also in Rajasthan
• 65 K deaths from HAP
• 68% of the population relied on solid fuels in 2015-16
• Very few of these households have adopted improved biomass cookstoves
• PM2.5 exposure often 100-200 µg/m3
• This is 10-20 times the WHO’s outdoor annual air quality guideline (AQG) of
10 µg/m3

3. 1st analyzed solution
Promotion of improved biomass cookstoves (ICS)

4. Description of the solution
• The intervention is the promotion of improved biomass cookstoves (ICS)
with more efficient fuel burning, reduced fuel consumption, and reduced
particulate matter (PM) emissions
• To be most effective, all cooking by the HH needs to be done with ICSs
• ICSs therefore need multiple burners
• But even then, expected PM2.5 exposure reductions are “only” 25% (for
outdoor cooking) to 40% (for indoor cooking)
• And a promotion program will not be able to induce all households to
adopt ICS
• A well-designed program may achieve 30% ICS adoption rate (3.1 million
HHs), of which 65% of households (2 million HHs) may continue to use the
ICS over the long term

5. Cost of ICS intervention
Initial cost
(Rs/HH)
Annualized
cost (Rs/HH)
Cost of stove
(high end of Rocket stoves such as Envirofit, Greenway and Prakti)
2,600 698*
O&M (5% of stove cost per year) 130
Promotion program cost
(Rs 175/30%)
583 157
Total annualized intervention cost 985
Note: Annualized cost is calculated using a discount rate of 5%. * Useful life of stove is 4 years.

6. Benefits of ICS intervention
Reduction in health effects 22%
Fuel savings
(Rocket stove)
40%
Cooking time savings (per HH per day) 15% (21 minutes)

7. Benefits of ICS intervention
Annualized
Rs/HH
Health benefits 3,411
Fuel collection time savings 1,139
Cooking time savings 1,759
CO2 emission benefits 96
Total benefits 6,405
Note: Discount rate: 5%.

8. Total costs, total benefits and benefit-cost ratio (BCR)
Discount rate
3% 5% 8%
Benefit (Rs billion/year) 22.3 19.8 17.4
Cost (Rs billion/year) 2.97 3.04 3.15
BCR 7.5 6.5 5.5

9. 2nd analyzed solution
Free provision of LPG connection to poor households

10. Description of the solution
• The assessed intervention is the PMUY government program (Pradhan
Mantri Ujjwala Yojana) launched in 2016 that provides free LPG
connections (LPG cylinder and auxiliary equipment) free of charge to
households below the poverty line (BPL)
• The purpose is to encourage these households to switch from solid fuels to
LPG.
• Estimated that 35% of HHs receiving free connections will use LPG as
primary cooking fuel (1.75 million HHs)
• To be most effective, all cooking by the HH needs to be done with LPG
• LPG stoves therefore need multiple burners
• But even then, expected PM2.5 exposure reductions are “only” 50-60% (for
outdoor cooking) to 70-75% (for indoor cooking)

11. Cost of intervention (Rs/HH)
Note: Annualized cost is calculated using a discount rate of 5%.
* 35% of HHs will continue using LPG
** Useful life of stove is 10 years.
Initial
cost
Effective
cost
Annualized
cost
Cost of connection 1,600 4,570* 564**
Cost of stove 1,600 4,570* 564**
O&M (5% of stove cost per year) 80
LPG fuel cost 7,077
Total annualized intervention cost 8,285

12. Benefits of intervention
Reduction in health effects 45%
Fuel savings 100% (23 hrs/month)
Cooking time savings (per HH per day) 30% (43 minutes)

13. Benefits of intervention
Annualized
Rs/HH
Health benefits 13,165
Fuel collection time savings 7,073
Cooking time savings 6,551
CO2 emission benefits 149
Total benefits 26,937
Note: Discount rate: 5%.

14. Total costs, total benefits and benefit-cost ratio (BCR)
Discount rate
3% 5% 8%
Benefit (Rs billion/year) 52.3 47.1 41.8
Cost (Rs billion/year) 14.3 14.5 14.7
BCR 3.6 3.3 2.8

15. 3rd analyzed solution
50% reduction of the LPG fuel subsidy

16. Description of the solution
• Government subsidy to LPG fuel was about 25% of market price as of
April 1, 2018
• The intervention is a 50% reduction of this subsidy
• Subsidy reduction would reduce budgetary burdens to government
and/or state enterprises and reduce “resources allocation
inefficiencies” that subsidies create
• However, 50% subsidy reduction would also make some households
cut LPG consumption and switch to solid fuels as primary cooking fuel
(est. 0.7 million HHs), thus causing negative health effects.

17. Costs of intervention
Note: Annualized cost is calculated using a discount rate of 5%.
Rs/HH/year
Increased health effects 10,233
Biomass fuel collection time 7,073
Increased cooking time 6,551
Biomass stove 389
CO2 emission increase 75
Total annualized intervention cost 24,320

18. Benefits of intervention
Rs/HH/year
LPG fuel savings 7,077
Reduction in deadweight loss
(DWL)
6,726
Total annual benefit 13,803

19. Total costs, total benefits and benefit-cost ratio (BCR)
Discount rate
3% 5% 8%
Benefit (Rs billion/year) 10.0 10.0 10.0
Cost (Rs billion/year) 19.1 17.6 15.8
BCR 0.52 0.57 0.63

20. Conclusions
• ICS has the highest estimated BCR, but free LPG connection yields
substantially greater health and total benefits (use of clean fuels, e.g.,
LPG is the long-term solution)
• A community approach to HAP control is needed to maximize benefits
due to the community pollution that HHs using solid fuels are causing
• LPG fuel subsidies may be burdensome for the budget, but gives
substantially higher benefits than costs