47
Infrastructure Development: The IEA estimates that 20 per- cent of investment in clean cooking will need to be in the form of infrastructure. Governments play a critical role in put- ting in place the infrastructure needed to support clean cook- ing. For example, investment in LPG fuel stations are helping to bring down transportation costs for clean cooking enter- prises and expand their customer base. 102 Investments to im- prove access, reliability and strength of the national grid, mi- ni-grid and off-grid electrical infrastructure are also needed to scale up the uptake of electric clean cooking solutions. 103 Public Education: Promoting universal access to clean cooking means changing ingrained cooking practices and traditions. Governments can support this through public education and awareness-raising programs designed to com- municate the advantages of clean cooking. 104 Some interna- tional development partners are working with governments to develop national campaigns. For example, the World Food Programme (WFP) collaborates with governments to intro- duce advocacy for clean cooking into school curricula, teach- ing and encouraging cooks to adopt efficient practices while also preserving food’s nutritional value. 105 Lesson learned from public education initiatives include the importance of
reaching women, who are primarily responsible for cooking and disproportionately affected by the drawbacks of tra- ditional methods, but with complementary messaging for men, who often hold greater economic power and the deci- sion-making authority. 106 Smart Subsidies and Tax Incentives: Given affordability bar- riers some element of public subsidy may need to be incor- porated in national clean cooking programs. However, sub- sidies need to be designed with care to avoid sustainability problems and market distortions (see Box 10). Most com- mentators suggest that “smart subsidies”, targeted towards specific market segments for limited periods, offer the best option. Selling clean cookstoves at highly subsidized prices does not necessarily lead to increased utilization. Indirect subsidies and tax incentives to manufacturers appear to offer better results. 107 Some countries are also introducing tax in- centives to encourage market development such as by mak- ing clean cooking products exempt from value-added tax and import duties.
Promoting Entrepreneurship and Innovation: Governments can also ensure that policies and instruments are in place to
BOX 10: KENYA’S CHALLENGES WITH INCENTIVIZING CLEAN COOKING
In 2016, Kenya eliminated the 16 percent value add- ed tax (VAT) on liquefied petroleum gas (LPG) and reduced the import duty on energy-efficient cook- stoves. At the same time, the government increased the cost of kerosene by 7.20 Kenyan schillings (US$0.07) per liter, to discourage its use. While ini- tially successful, later studies showed that, when 16 percent VAT on LPG was restored in 2021, more than 105 Birnbaum, J (n.d) Clean Cookstoves, Regeneration, https://regeneration.org/ nexus/clean-cookstoves 106 Vigolo et al., (2018) Drivers and Barriers to Clean Cooking: A Systematic Literature Review from a Consumer Behaviour Perspective, Sustainability 2018, 10(11), 4322, https://www.mdpi.com/2071-1050/10/11/4322 107 Akbar Sameer, Douglas Barnes, Andrew Eil, and Anastasia Gnezditskaia. Household Cookstoves, Environment, Health, and Climate Change: A New Look at an Old Problem. Working Paper. World Bank, 2011, https://documents1.worldbank.org/curated/ar/732691468177236006/ pdf/632170WP0House00Box0361508B0PUBLIC0.pdf
half of consumers decreased their use of LPG in fa- vor of charcoal and wood. 108 Kenya’s recent draft National Green Fiscal Incentives Policy Framework from 2023 proposes a range of tax exemptions and waivers to companies that produce clean cooking technologies, demonstrating the variety of fiscal in- centives that can be used to incentivize market de- velopment. 109 108 Shupler, M., et al., (2022), COP26 and SDG 7 goals under threat: 16 percent VAT on LPG reverses progress made in clean cooking adoption in Kenya, https:// www.researchgate.net/publication/360109458_COP26_and_SDG7_goals_ under_threat_16_VAT_on_LPG_reverses_progress_made_in_clean_cooking_ adoption_in_Kenya 109 The Republic of Kenya (2022) Draft National Green Fiscal Incentives Policy Framework, The National Treasury and Economic Planning, https://www.treasury. go.ke/wp-content/uploads/2023/01/Draft-Green-Fiscal-Incentives-Policy- Framework.pdf
4. OPTIONS FOR SCALING UP CLEAN COOKING
Powered by FlippingBook