Abstract

This paper presents an analysis of the cost of reducing carbon dioxide emissions through the introduction of improved cookstoves. The analysis constructs mitigation cost curves for three types of wood fuel user in 75 countries that account for 95 percent of all emissions from cooking with wood. Each curve is based on a Monte Carlo simulation of the costs and benefits of households switching to improved cookstoves, using a range of values for the most important variables in the calculation (wood fuel consumption and cost, stove cost and lifespan, level of adoption and emission reduction). The simulation results are then used to produce cost curves at the country and global level, using expansion coefficients based on national wood fuel statistics and census results.The analysis shows that the cost of an improved cookstove would be recovered by fuel cost savings in about 215 million households. After excluding households already using improved stoves, the net number of households that should switch to improved stoves is 155 million, which would result in an emission reduction of 95 MtCO2. If emission reductions are also valued (i.e. given a carbon price), more households should switch and the emission reduction potential increases to 165 MtCO2 at a carbon price of USD 20/tCO2. While these amounts are relatively small compared to total global emissions, improved cookstoves could make an important contribution in some countries, especially in Africa. It is also worth noting that the benefit-cost ratio of investing in improved cookstoves is relatively high, ranging from 2.9 to 3.5 at a carbon price of zero and USD 20/tCO2 respectively.

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