Page 13 - Money in Energy
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Money in energy -Investment Opportunities and risks 2010

Cultural preferences In some cases, traditions determine the fuel choice
regardless of fuel availability and income. In India, even very rich households
keep a biomass stove to prepare traditional bread.

Figure below is a representation of the typical fuel transition in poor households
as their income rises (the actual transition is much more dynamic, as nearly all
households opt for a combination of fuels). The share of basic needs in total
consumption falls off sharply as families grow more prosperous.

l

Illustrative example of household fuel transition Source: WEO 2002

Figure shows plots average final energy consumption per capita for 100

developing and transition countries, grouped according to the percentage of

their population

under the poverty

line ($2 a day).In

countries where less

than 5% of the

population is poor,

per capita energy

consumption is four

times higher than in

countries where more

than 75% of the population lives under the poverty line.

13 Etree Projects Consultants Pvt Ltd.
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