Box 42.5Key Lessons Learned in the Promotion of New Markets for LPG in Developing Countries

  • LPG can be affordable outside of urban areas, where wood fuel is currently purchased. On the other hand, "for many consumers who do not participate in the monetized economy, it will be premature to promote LPG markets."
  • One-time subsidies on appliances could be a good use of government (or other) resources.
  • Microcredit initiatives should emphasize the cost-saving and productive potential and should seek to package both the gas (and appliances) and the financing.
  • Concerns about safe handling, cylinder refilling, and transportation can be serious barriers to market expansion. These issues need to be addressed by raising awareness among consumers and strengthening regulatory environments.
  • Appliances for a range of end uses required by consumers must be available.
  • Government leadership is essential, backed up by policy that sets the basic parameters for successful market expansion and avoids conflict between, for example, subsidies on competing fuels that undermine efforts to promote LPG markets.
  • Specific initiatives, such as integrated energy centers (as in Morocco and South Africa) offer an effective means of developing markets in rural areas.
    Source: Authors, based on McDade 2004.

From: Chapter 42, Indoor Air Pollution

Cover of Disease Control Priorities in Developing Countries
Disease Control Priorities in Developing Countries. 2nd edition.
Jamison DT, Breman JG, Measham AR, et al., editors.
Washington (DC): World Bank; 2006.
Copyright © 2006, The International Bank for Reconstruction and Development/The World Bank Group.

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