Technology Options for Increasing Electricity Access in Areas with Low Electricity Access Rate in Nigeria.
This study examines the cost-effective technology option for increasing electricity access in two states with low electricity access rates in Nigeria i.e. Taraba and Yobe, from their present level of 10.9% and 18.1% respectively to 50% within a 10-year investment period. This means providing electricity access to about 267000 and 282000 households in Taraba and Yobe States respectively. We employ the Network Planner Tool – a web-based decision support program which integrates geospatial information with demographic and energy demand information, and compare three electrification options: grid-extension, mini-grid diesel-based system, and stand-alone option which uses solar PV home systems supplemented by small diesel system for productive use. The results show that grid-extension is the cost-effective option for 91% and 79% of the demand nodes in Taraba and Yobe respectively; the mini-grid option is the least-cost cost option for the remaining demand nodes; while the stand-alone option is not cost-effective in any demand node. The total cost of achieving the 50% penetration rate within the investment period in Taraba State is US$962.38million, where grid-extension accounts for 93.33% and mini-grid account for 6.67%. The total cost of achieving the 50% penetration rate within the investment period in Yobe State is US$1.03billion, where grid-extension accounts for 87.25% and mini-grid account for 12.75%. Sensitivity analysis indicates that the mini-grid becomes cost-effective for more demand nodes with lower cost of energy storage. The study sets the stage for future studies to use more accurate data from households’ survey to build on.
Effect of Technology Change on CO2 Emissions in Japan’s Industrial Sectors in the period 1995-2005: An Input-Output Structural Decomposition Analysis.
This paper employs two-stage input–output structural decomposition analysis (SDA) to identify the factors responsible for changes in Japan’s CO2 emissions for two periods: 1995–2000 and 2000–2005. First, the study decomposes the total change in CO2 emissions for each period to obtain the contribution of change in CO2 emissions per unit output (CO2 emissions coefficient), change in technology technology effect), and change in final demand. The study observed from the first-stage decomposition that emissions coefficient and final demand drive the change in the first period (1995–2000) while the technology effect drives the change in the second period (2000–2005). The high contribution of the technology effect is driven by activities of iron and steel; coke, refined petroleum and gas; road transportation; and electricity sectors. Having observed the trend of the technology effect across the two periods, the study carried out a second-stage decomposition on technology effect in the second period to examine the contribution of each sector and observed that chemical and pharmaceuticals; iron and steel; road transportation; and construction sectors are mainly responsible. In conclusion, improvement in technical efficiency especially at the industrial process level of each industry will help Japan achieve greater level of CO2 emissions reduction.
This study employs panel analysis to examine the determinants of foreign direct investment (FDI) in Brazil, Russia, India, China, and South Africa (BRICS) and Mexico, Indonesia, Nigeria, and Turkey (MINT) using data for eleven years i.e. 2001 – 2011. First, it uses pooled time-series cross sectional analysis to estimate the model on determinants of FDI for three samples: BRICS only, MINT only, and BRICS and MINT combined; then, random effects model is also employed to estimate the model for BRICS and MINT combined. The results show that market size, infrastructure availability, and trade openness play the most significant roles in attracting FDI to BRICS and MINT while the roles of availability of natural resources and institutional quality are insignificant. Given that FDI inflow to a country has the potential of being mutually beneficial to the investing entity and host government, the challenge is on how BRICS and MINT can sustain the level of FDI inflow and ensure it results in economic growth and socio-economic transformation. To sustain the level of FDI inflow, governments of BRICS and MINT need to ensure that their countries remain attractive for investment. BRICS and MINT also need to ensure that their economies absorb substantial skills and technology spillovers from FDI inflow to promote sustainable long-term economic growth by investing more in their human capital. The study is significant because it contributes to literature on determinants of FDI by extending the scope of previous studies which often focus only on BRICS.
Households’ Perception and Livelihood Vulnerability to Climate Change in a Coastal Area of Akwa Ibom State, Nigeria.
This study examines households’ perception and livelihood vulnerability to climate change in a coastal area of Akwa Ibom State, Nigeria. It employed multistage sampling procedure, selected a total of 101 households from three coastal communities in Ibeno local government area of Akwa Ibom State, Nigeria and obtained primary data on several indicators through interviews guided by a structured questionnaire. From the data obtained, the study examined households’ perception and developed a livelihood vulnerability index (LVI) to assess livelihood vulnerability. The result showed that households in the study area generally perceive that all the climate variables considered in the study, especially timing and length of the average rainy season, have changed over time. These are in line with meteorological data obtained from the Nigerian Meteorological Agency. In addition, the LVI shows that households are vulnerable to changes in climate variables. Households in the study area are striving to adapt to these changes but facing many challenges of which lack of adequate finance is the most important. Although these challenges are multifarious, they can be reduced through adequate support of government and non-governmental organizations. Consequently, policy recommendations are discussed.
Municipal Solid Wastes in most towns and cities in Nigeria are disposed in open dumps or ravines which are only a few meters away from major streets and residential areas, and in other cases are dumped into drainages which eventually flows into adjoining streams which serves as a source of water supply to the resident of such locality. This unscientific and unregulated disposal pattern causes severe environmental and public health hazards. This study examines a sustainable approach to municipal solid waste (MSW) management in Southern Nigeria and recommends proven methods of MSW management. The benefit of using MSW to generate electricity is also explored. It is seen that the proper waste management has the potential benefit of greatly reducing incidences of morbidity caused by indiscriminate waste disposal in such areas and can contribute to the solving the energy need of the affected communities were the waste are disposed . On the whole, proper MSW management would not only improve the air quality and minimize the associated health hazards which people residing and working in such area are subjected to, but would also reduce the rate at which green house gases and other poisonous gases which contributes to global warming are emitted into the atmosphere. The study indicates that from a daily delivery of 2,714 tons of waste in just one city, about 30 to 52 MWh of electricity can be generated. The study recommends a sustainable approach to MSW handling and the incorporation of waste incinerators with energy recovery at dump sites to effectively transform the inherent energy in MSW to electricity.
This study examines the impact of rural electrification through extension of existing grid on rural micro-enterprises in Niger Delta, Nigeria. The study used purposive sampling and obtained data using structured questionnaires and personal interviews with the owners of the micro-enterprises. From the data, summary information was obtained and the impact of connection to grid-electricity on themicro-enterprises was examined using a log-linear regression model. The result shows that although not statistically significant, on average, enterprises in communities connected to the electricity grid are 16.2% more profitable than enterprises in communities not connected to the grid, and the use of generating sets in providing back-up electricity makes micro-enterprises more profitable. The study also observed that micro-enterprise owners are fully aware of the importance of electricity access to the profitability of their businesses and those who can afford to buy generating sets willingly do so. Incidentally, the total expenditure on generating sets by some enterprises is up to three times (3×) the tariff for grid-electricity in rural areas. The high cost of self-generated electricity increases the total cost of doing business in rural areas thus reducing the profit margin of the micro-enterprises. In conclusion, for rural electrification to be more effective in improving the living standard of rural dwellers, the larger problem of increasing the national generating capacity and the availability of grid-electricity should be tackled, and rural electrification programs should be carried out alongside other programs that reduce the barriers to establishing micro-enterprises like the creation of rural agricultural co-operatives to promote the productive use of electricity.
This study examines the viability of providing electricity to an un-electrified village in North-Eastern Nigeria using a mini-grid based off-grid solar photovoltaic system. The study employs the life-cycle cost to estimate a 25-year life-time cost of an off-grid electrification project using solar photovoltaic system and compares with the cost of paying for grid-electricity within the same period. Comparing the cost of off-grid electrification with grid-extension is more appropriate; however, data on the cost of grid extension in Northern Nigeria are scarce. Thus, electricity tariff is used as a proxy since the Nigerian electricity market has been deregulated and the electricity tariff is expected to be market-reflective. The result shows that such project will not be economically viable at the prevailing commercial lending rate as it yields a negative net present value. However, the project becomes viable with adequate government support through the reduction in commercial lending rate for such projects and provision of start-up grants (as production subsidy). Such subsidy will not result in economic waste since the target is clearly defined. Apart from government financial incentives, creating necessary support mechanism in terms of legal and regulatory frameworks to encourage private investment will be necessary. In addition, engaging the community in the construction and maintenance of the project will ensure sustainability.
This study evaluates the costs and benefits of interventions to reduce indoor-air pollution from the use of solid biomass for cooking and heating in Nigeria. The study uses cost-benefit analysis and assesses two intervention scenarios: Providing access to improved stoves; and Providing access to cleaner fuels (LPG burners). Both intervention scenarios are compared with the current situation, i.e., the ‘‘business as usual’’ scenario where there is no attempt to reduce the present level of exposure to indoor-air pollution from solid fuel use. The result shows that the cost-benefit ratio of the stove intervention is 0.388 while that of LPG is 0.371. While providing access to cleaner fuels (LPG) has a larger health impact on the population than improved stoves, the low income level of the participants will favor the stove option because of the lower recurrent cost which is usually borne by the participants. From a public health point of view, there is need for a continued emphasis on the promotion of improved stoves to reduce exposure in households using solid-fuels until everyone can have access to cleaner fuels. Furthermore, since choice of cooking technologies is influenced by income level, the intervention policy should be implemented alongside other socio-economic development programmes. This study bridges the knowledge gap with respect to indoor-air pollution issue in Nigeria. It offers policy makers an insight into the potential net benefit of intervening to reduce indoor-air pollution through the use of solid biomass fuels in Nigeria.
Nigeria is endowed with vast oil resource which accrue huge amount of revenue to the country and this made many Nigerians and previous governments to perceive petroleum resources as God’s gift and a ‘social good’ that must be benefited by all. In view of this, petroleum subsidies were introduced in 1960s to promote an increase in social welfare and assist the poor to utilize the relative resource advantages of the country. However, increase in demand, dilapidated nature of the refineries, etc. make it difficult for the government to meet domestic demand using local supply. Moreover various attempt to phase-out the subsidies have been welcome with series of civic unrest and oppositions from the trade union and other stakeholders with mostly result to policy reversal. In the light of the above, this paper addresses the deficiency of the previous attempt to phase-out petroleum subsidies base on review of empirical specific county studies and experiences. The paper designs a ‘win-win’ roadmap for reforming the petroleum subsidies that should be adopted by the country.