ASSISTANCE TO THE THIRD WORLD ON URBAN ENERGY

This report assesses major urban energy uses and problems and recommends strategies and a methodology for A.I.D. assistance in helping to meet these needs. An analysis of energy use by sector indicates that in general, industry consumes far more commercial energy in developing countries than in developed countries. In the service sector (i.e., retail trade shops, government activities, utilities), developing countries" energy costs are higher due to these countries" limited infrastructure. Within the informal sector (those individual or group enterprises which are loosely characterized by high labor and low capital intensity, irregular hours, erratic work conditions, and high labor mobility), human labor substitutes for commercial energy sources and capital requirements, while in the household sector, 1/4 of family budgets are spent on heat-related, energy-using tasks, such as cooking, heating, and lighting. Within both the construction and transportation sectors, more laborintensive, energy-saving technologies could be employed to replace the developed country, energy-monger methods currently in use. A major barrier to designing effective energy-saving policies is the lack of comprehensive data on patterns of energy use, efficiencies of conversion, matching of fuel to end-use, and environmental and social costs of energy use patterns. Development agencies should assist developing countries in exploring fossil fuels and in developing hydroelectric and solar facilities. In devising an urban energy assistance program, the authors recommend that emphasis be placed on: (1) collecting data specific to the target area and disseminating those data to proper local officials; (2) improving local energy capabilities by institution building, training, and increasing public awareness; and (3) financing urban energy activities.