Browsing by Subject "Cookstove"

Now showing 1 - 1 of 1

Microeconomic analysis of policies addressing food security, water and energy trade-offs in Malawi
(2017) McNulty, Emily; Zeller, Manfred
The increasing pressure from the world’s population on limited natural resources has reached an urgent level. The global demand for water, food, and energy is unsustainable, and poses a threat to human health, political stability, and environmental well-being. The poor in developing countries are most vulnerable to the negative effects of the exploitation of constrained resources, and the segregation of development programs by sector means that policy interventions do little to help. Currently, development policies are created in isolation from one another, within their own sectoral realms, and inter-sector coordination is rare. Policy interventions that affect more than one sector are key to holistic, sustainable development, but because they face an ownership issue, not falling under any one sector’s jurisdiction, they often go unaddressed. The alternative to the status quo is the use of a nexus perspective, which emphasizes the interconnectedness of sectors and seeks to implement policy interventions with the best net outcomes. Policy makers are encouraged to adopt “systems thinking”, to resist over-focused investments and interventions, and to seek regulatory cooperation. The body of nexus literature is growing mainly with the establishment of theoretical frameworks and macroeconomic studies that model outcomes of nexus interventions. This thesis contributes to the pool of nexus literature with microeconomic studies that are evaluated from the perspective of the food-energy-water (FEW) nexus. Microeconomic analysis is valuable to the nexus perspective not only because it informs macroeconomic models, but also because it provides empirical evidence of nexus forces at work. The subjects of the three studies contained in this thesis are smallholder farmers in Dedza, Malawi. The first study investigates the farmers’ willingness to invest in communally-owned irrigation schemes and the household socioeconomic characteristics that determine that willingness. The study is intended to inform Irrigation Management Transfer (IMT) programs, to help smooth the process of the transfer of irrigation scheme ownership from the government to local stakeholders. The promotion of IMT programs is considered a FEW nexus intervention because irrigation affects not only the water sector, but also the energy and food sectors. The second study in this thesis elicits smallholder farmers’ preferences for a conditional cash transfer (CCT) over a fertilizer subsidy coupon, with the intent of presenting policy makers with an alternative to Malawi’s Farm Input Subsidy Program (FISP). The narrow focus of the FISP, combined with its astronomical budget and disputed impact, indicate that it is time for an alternative, nexus-oriented intervention. The conditionality of a CCT means it can be targeted directly at certain sectors, and because beneficiaries are free to spend the cash as they choose, the impact will be spread over all three sectors. The third study in this thesis explores smallholder farmers’ willingness to pay (WTP) for improved cookstoves (ICS) and the socioeconomic characteristics that determine their WTP, to assist ICS promoting programs with pricing and targeting. Widespread sustained ICS adoption and the resulting fuel savings would directly affect the food and energy sectors, and indirectly affect the water sector. The high morbidity rates caused by reliance on biomass fuels for cooking would decline with sustained ICS adoption and proper use, resulting in human health improvements that would affect all three nodes of the nexus. There would be further indirect effects on all three sectors resulting from advancements in gender equality and climate change mitigation. While the findings of these studies have interesting implications for the FEW nexus, the interventions in question should be applied in an economy-wide model to determine the nexus effects. Such coordination of micro- and macroeconomic research, coupled with the inter-sector perspective, characterize the nexus approach and the future of development policy.