Can developing countries benefit from innovative pricing in the power sector?

This study explores electricity pricing as a demand-side management (DSM) strategy, looking to the developed country experience for insights into the types of approaches currently used, their effects, and the direction in which electricity pricing is headed. The discussion should be especially useful for electric utilities in developing countries that are exploring alternatives to capacity expansion to meet current and future electric power demand. For these electric utilities, demand-side options are especially important under today's conditions in which the capital cost of new generating capacity is increasing rapidly, international funds for expanding power sectors are not expected to be sufficient for meeting projected capacity needs and environmental concerns over fossil fuel emissions have raised new questions about constructing thermal power plants.     

Fog collection's role in water planning for developing countries

In certain locations, the combination of meteorological conditions and topography are such that persistent fogs cover coastal or interior mountains. The droplets from these fogs are collected by trees or other tall vegetation. They can also be collected by appropriately designed man-made collectors, to provide large volumes of water for domestic, agriculture or forestry uses. The largest project to date has provided, since March 1992, an average of 11 000 litres of water per day (*****l/d) to a village of 330 people in the arid coastal desert of northern Chile. This project and others are reviewed. The impact of the deforestation of high elevation areas, and the subsequent loss of fog water input in a watershed are discussed, as are guidelines for water planners.     

Feasibility of water purification technology in rural areas of developing countries

Water scarcity is threatening social and economic growth in rural areas of developing countries. There are potential markets for water purification technologies in these regions. The main focus of this article is to evaluate the social, economic and political feasibilities of providing water purification technologies to rural areas of developing countries. The findings of this research can serve as the basis for private investors interested in entering this market. Four representative regions were selected for the study. Economic, demographic, and environmental variables of each region were collected and analyzed along with domestic markets and political information. Rural areas of the developing world are populated with poor people unable to fulfill the basic needs for clean water and sanitation. These people represent an important group of potential users. Due to economic, social, and political risks in these areas, it is difficult to build a strong case for any business or organization focusing on immediate returns on capital investment. A plausible business strategy would be to approach the water purification market as a corporate responsibility and social investing in the short term. This would allow an organization to be well positioned once the economic ability of individuals, governments, and donor agencies are better aligned.     

Refinery deregulation in developing countries

For much of the 1980s refining has been unprofitable. The continued operation of small refineries in oil-importing developing countries has therefore come under intense scrutiny, especially by the international financial institutions concerned with high levels of external debt. This paper examines the specific case of Morocco. Even though refining may be unprofitable at the world's export refineries, refining may still be part of the least-cost solution to meeting developing country petroleum demands as a result of transport differentials. Unlike some other refineries in Africa, those of Morocco are well run, and closure is unwarranted. Rather the need is for regulatory and pricing reform, such that refiners can respond more flexibly to changes in world markets.     

Appropriate water supply and sanitation technology for developing countries in tropical monsoon climates

Summary In the past, the water supply and sewage services for the urban regions of developing countries have been provided, in the main, only for the more affluent areas of these cities. This paper, dealing especially with those countries with tropical monsoon climates, advocates the construction of more comprehensive systems.Experience drawn from a wide range of projects and a review of the relevant literature provokes the authors to emphasise the need for suitable manuals of appropriate technology for use in these developing countries. These manuals should provide a full set of environmental guidelines for the design of water supply and sewage/sanitation systems for use in these countries.Dr Harvey F. Ludwig is Chairman and Greg Browder is Environmental Engineer for SEATEC International Consulting Engineers, Bangkok, Thailand.     

Management of environment in developing countries

Summary Environmental problems in developing countries partly arise out of lack of development, hence they are intricately linked to the socio-economic conditions. Environmental awareness and environmental education are critical under these conditions but these are time consuming and slow solutions. Integration of economic and environmental plans for various regions have to be attempted systematically. Time is running out, and unless comprehensive steps are taken up some of the capital assets (such as forests, fresh water, soils, etc.) are likely to be irretrievably damaged.Dr B. Bowonder was, until recently, Chairman of the Centre for Energy, Environment and Technology at the Administrative Staff College, Hyderabad. He recently joined this Journal's Advisory Board and his analysis of the Bhopal Incident (The Environmentalist, 5 (2) 89–103) created considerable interest. He is currently a member of the United Nations Economic and Social Commission for Asia and Pacific.     

The bhopal incident: Implications for developing countries

Summary The author summarizes the events of the Bhopal disaster as they are currently known, and draws a number of very important conclusions regarding safety procedures. These have implications for all developing countries.Dr. B. Bowonder is Chairman of the Centre for Energy, Environment and Technology at the Staff College and, as a regular contributor to this journal, he was invited to analyze the Bhopal incident.     

Electric load management in developing countries

Energy planners in developing countries have traditionally sought to meet their nations' growing electricity demands by adding more generation and transmission capacity. But as the foreign investment situation became critical in the 1980s, private investment and system efficiency improvement programmes began to garner interest. One of the most promising system efficiency improvement options is load management, which uses a variety of techniques to utilize the electricity system's existing capacity more efficiently. However, to date, only three countries have seriously considered implementing large load management programmes: Pakistan, Peru and Costa Rica. This paper describes a 1987-89 load control demonstration programme in Costa Rica, sponsored by the US Agency for International Development (AID), in which participating industries were able to reduce their peak demand by 14%.     

Sustainable forestry management in developing countries

The central message of this paper is that natural forests have multiple uses and multiple users. The paper describes the crisis in Asian forestry and four failures which lie behind the crisis. The first failure is related to economic policy which has consistently underpriced timber, not accounting for the true cost of replacing the felled trees or the value of non-timber goods and services (including environmental services). The second failure stems from the lack of community involvement in managing forests. The third failure is that of forestry institutions which have not been able to adapt to changes required to meet new challenges — away from timber extraction towards environmental services and social forestry. The fourth failure arises from technological constraints, including difficulties in carrying out long-term research (to cover the 20–40 year time horizon in the forestry sector) and ineffective application of research results. A number of specific suggestions for moving toward sustained yield management in Asia are presented. The sustainable management of forests in Asia is crucial not only for indigenous peoples, the environment and economies of the countries of Asia, but also for the biodiversity and health of the global environment.     

Analysis of cooking energy in developing countries

Cooking is the major energy end use in most developing countries. A general model to calculate energy-use cost for cooking with 15 combinations of fuel and end use device based on prevailing market conditions is proposed by this paper. The model has been implemented to develop an independent computer software which ranks the combinations on the basis of least cost. The model reflects cooking energy consumption patterns in urban Nepal, where it was tested. The results suggest that biomass energy used in efficient stoves is the most attractive option for cooking in Nepal. Hence, a policy for effective use of biomass is necessary .     

The contribution of energy efficiency to sustainable development in developing countries

The demand for energy services is growing rapidly in developing countries. Low levels of energy efficiency in electric power supply and in energy use mean that the energy sector threatens to absorb an intolerably high share of available financial resources. Energy inefficiency also contributes to local and global environmental problems. A strategy of vigorously improving energy efficiency is thus a key element of a sustainable development path. Results reported in this paper show that there is considerable room for efficiency improvement in both existing and new capital stocks, but a much larger effort than presently underway is essential if the potential is to be realized. Assistance from the industrialized countries can play a major role in such an effort.     

The illegal trading of high unit value minerals in developing countries

Attracted by the high unit value and low barriers to entry in terms of capital requirements, technology, infrastructure, minimum reserves and implementation time, the artisanal and small-scale mining of high unit value minerals, such as gemstones, diamonds and gold, has grown to significant proportions in developing countries. This is manifested by the value of output and large numbers of miners engaged in this activity. Despite the expansion of the subsector, its national economic role in many developing countries has largely been disappointing, primarily due to high levels of illegal trading activity. The objectives of this paper are to identify major factors responsible for the declaration problem. The economic impact of such activities is pointed out. To conclude the discussion, options are presented that provide a basis for eliminating illegal marketing practices and thereby strengthening the economic role of the subsector in meeting national development objectives of developing countries .     

The transformation and successful development of small-scale mining enterprises in developing countries

Proponents have long argued that small-scale mining, given proper direction and support, can contribute substantively to the socioeconomic development of rural areas in developing countries. The attitudes of governments, commercial mining companies and donor agencies have been coloured by the haphazard, informal, often dangerous and seemingly wasteful character of much local mining activity, especially at the smallest scale. Yet this 'artisanal' activity has come to assume a critical economic welfare function in many countries, especially those which have suffered through extended periods of environmental and economic stress. This paper argues that this type of mining, because of both its upside potential and its problematic nature, cannot be ignored: neither can it be eradicated. Instead, explicit and sustained attention from governments, non-government organizations, the private sector and donor agencies is advocated for an effort to rationalize and formalize this type of mining, to increase its economic and technical efficiency, and to maximize its social benefits and minimize its disadvantages.     

Issues in natural resources management in developing countries

Recognizing the steady depletion of natural resources in developing countries, this study analyses its causes by focusing on the ownership of such resources. Resource degradation was found associated with an array of individual, socioeconomic, politicoeconomic and institutional factors. In the pursuit of sustainable regional resources management and conservation, it is necessary to analyse and incorporate these multifarious factors into the design of a comprehensive strategy. While local government should be responsible for devising management strategies, their implementation requires the interfacing of field agencies with local communities that are to be assisted in the short term and instructed in depth; their performance should be closely monitored over the long term.     

Private sector participation in urban water and sanitation: Realising social and environmental objectives in developing countries

There has been a large increase in private sector participation (PSP) in the urban water supply and sanitation (WSS) sector in recent years. However, even with increased PSP, public authorities will still have to: ensure that the service providers do not use their market power to exploit customers; internalise public health and environmental externalities; provide mechanisms whereby water consumption is sustainable and allocated efficiently between alternative uses; and stand as a guarantor of a level of service provision that is consistent with a basic standard of living. While there is considerable literature addressing the first of these four issues, the latter three are rather less adequately addressed. Through a review of a number of case studies (Abidjan, Buenos Aires/Cordoba, Mexico City and Manila), this paper provides an overview of the issues involved and some of the mechanisms available to the authorities responsible for the regulation of the sector.     

The TRIPS Agreement and transfer of climate-change-related technologies to developing countries

Despite numerous international commitments to promote transfer of climate-change-related technologies to developing countries, such transfers are not occurring at a rate fast enough to aid these nations in mitigating and adapting to the effects of climate change. The impact of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) on transfer of these technologies is discussed through a detailed examination of relevant TRIPS provisions. The article also addresses options for improving technology transfer through exploitation of existing TRIPS flexibilities, modification of the Agreement, and other public and private legal and policy avenues.     

Citizen funds and Dutch Disease in developing countries

Are Alaska-style citizen revenue distribution funds the solution to the resource curse in developing countries as their proponents conjecture? Unfortunately it appears not. First, it is questionable whether developing countries have the institutional capacity to implement and operate such funds successfully. Second, citizen funds are unlikely to have any substantial impact on governance and their macroeconomic effects are uncertain. Finally, as a comparative case study of the three natural resource-intensive economies that successfully steered clear of excessive real appreciation and crowding out of the non-minerals tradables sector—Botswana, Indonesia and Norway—shows, citizen funds are likely to carry detrimental indirect effects on the ability of governments to surmount the Dutch Disease.