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Biogas : clean energy access with low-cost mitigation of climate change

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  • Somanathan,E.
  • Bluffstone,Randall

Abstract

With data from the nearly 6,000 households in the Nepal Living Standards Survey of 2010?11, this paper finds that the mean reduction in household firewood collection associated with use of a biogas plant for cooking is about 1,100 kilograms per year from a mean of about 2,400 kilograms per year. This estimate is derived by comparing only households with and without biogas in the same village, thus effectively removing the influence of many potential confounders. Further controls for important determinants of firewood collection, such as household size, per capita consumption expenditure, cattle ownership, and unemployment are used to identify the effect of biogas adoption on firewood collection. Bounds on omitted variable bias are derived with the proportional selection assumption. The central estimate is much smaller than those in the previous literature, but is still large enough for the cost of adopting biogas to be significantly reduced via carbon offsets at a modest carbon price of $10 per ton of CO2e when using central estimates of emission factors and global warming potentials of pollutants taken from the scientific literature.

Suggested Citation

  • Somanathan,E. & Bluffstone,Randall, 2015. "Biogas : clean energy access with low-cost mitigation of climate change," Policy Research Working Paper Series 7349, The World Bank.
    • Handle: RePEc:wbk:wbrwps:7349
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    Cited by:

    1. Talevi, Marta & Pattanayak, Subhrendu K. & Das, Ipsita & Lewis, Jessica J. & Singha, Ashok K., 2022. "Speaking from experience: Preferences for cooking with biogas in rural India," Energy Economics, Elsevier, vol. 107(C).
    2. Ngawang Dendup, 2021. "Returns to Grid Electricity on Firewood Consumption and Mechanism," Working Papers 2109, Waseda University, Faculty of Political Science and Economics.
    3. Bluffstone, Randy & Dannenberg, Astrid & Martinsson, Peter & Jha, Prakash & Bista, Rajesh, 2020. "Cooperative behavior and common pool resources: Experimental evidence from community forest user groups in Nepal," World Development, Elsevier, vol. 129(C).
    4. Thomas Sterner, 2015. "Beyond IPCC, Research for Paris 2015 and Beyond," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(2), pages 207-215, October.
    5. Faraz Usmani & Marc Jeuland & Subhrendu K. Pattanayak, 2018. "NGOs and the effectiveness of interventions," WIDER Working Paper Series wp-2018-59, World Institute for Development Economic Research (UNU-WIDER).
    6. Robyn Meeks & Katharine R. E. Sims & Hope Thompson, 2019. "Waste Not: Can Household Biogas Deliver Sustainable Development?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 72(3), pages 763-794, March.
    7. Bensch, Gunther & Kluve, Jochen & Stöterau, Jonathan, 2021. "The market-based dissemination of energy-access technologies as a business model for rural entrepreneurs: Evidence from Kenya," Resource and Energy Economics, Elsevier, vol. 66(C).
    8. Bharadwaj, Bishal & Subedi, Mukti Nath & Malakar, Yuwan & Ashworth, Peta, 2023. "Low-capacity decentralized electricity systems limit the adoption of electronic appliances in rural Nepal," Energy Policy, Elsevier, vol. 177(C).
    9. Faraz Usmani & Marc Jeuland & Subhrendu Pattanayak, 2018. "NGOs and the effectiveness of interventions," WIDER Working Paper Series 59, World Institute for Development Economic Research (UNU-WIDER).
    10. Dendup, Ngawang, 2022. "Returns to grid electricity on firewood and kerosene: Mechanism," Journal of Environmental Economics and Management, Elsevier, vol. 111(C).

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    Keywords

    Energy Production and Transportation; Renewable Energy; Climate Change Mitigation and Green House Gases; Energy and Environment; Environmental Economics&Policies;
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