The Role of Taxes and Subsidies in the Clean Cooking Transition: A Review of Relevant Theoretical and Empirical Insights
Abstract
United Nations Sustainable Development Goal (SDG) 7.1 sets a target of ensuring universal access to affordable, reliable, and modern energy services by 2030. Unfortunately, many low- and middle-income countries (LMICs) are well off course to meet this target, especially with respect to access to clean cooking energy. Though many challenges impede progress toward use of modern and sustainable energy for cooking purposes, cost barriers are perhaps most significant. Against this backdrop, this brief discusses the role of subsidy and tax policies—levied on both the supply and demand side of this market—in affecting progress toward universal access to clean cooking in LMICs. Moreover, combating a common myth among those opposing subsidies for clean cooking, the brief demonstrates that a “fear of spoiling the market” with such incentives finds little empirical support in the literature. Based on theory and evidence discussed in additional detail, this brief offers recommendations to policy makers.
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Das, Ipsita, Marc Jeuland and Victoria Plutshack (2022). The Role of Taxes and Subsidies in the Clean Cooking Transition: A Review of Relevant Theoretical and Empirical Insights. Retrieved from https://hdl.handle.net/10161/31696.
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Marc A. Jeuland
Marc Jeuland is a Professor in the Sanford School of Public Policy, with a joint appointment in the Duke Global Health Institute. His research interests include nonmarket valuation, water and sanitation, environmental health, energy poverty and transitions, trans-boundary water resource planning and management, and the impacts and economics of climate change.
Jeuland's recent research includes work to understand the economic implications of climate change for water resources projects on transboundary river systems, a range of primary data collection projects related to analysis of adoption of environmental health improving technology, and analysis of the costs and benefits of environmental health interventions in developing countries. He has conducted multiple field experiments on issues such as: the role of water quality information in affecting household water and hygiene behaviors; the demand for, and impacts of cleaner cookstoves on household well-being; the long-term sustainability and effects of rural sanitation and water supply projects. He has also collected data on preferences for a range of environmental health improvements including cholera vaccines, household water treatment technologies and improved cookstoves. In the energy and development domain, he is currently working on several projects with the Energy Access Project at Duke, and is a co-founder of the Sustainable Energy Transitions Initiative (SETI), along with Professor Subhrendu Pattanayak and scholars from Chile, China and Ethiopia. His energy portfolio includes work related to evaluation of cleaner cooking interventions, measuring energy access and reliability, and reviews of the drivers and impacts literature related to energy.
Jeuland has worked in the past with the World Bank, USAID, the Millennium Challenge Corporation, UNICEF, and many field-based NGOs and community-based implementing organizations.
Prior to his graduate studies and work with the World Bank, Jeuland was a Peace Corps volunteer in Mali, West Africa, where he designed and monitored construction of a pilot wastewater treatment system and trained management personnel at the plant’s managing firm.
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