| 来源类型 | Research papers
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| 规范类型 | 报告
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| A Rational Supply of Heating Energy to Small Cities and Rural Areas |
| K. S. Park
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| 发表日期 | 2010-12-31
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| 出版年 | 2010
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| 语种 | 英语
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| 摘要 |
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1. Research Purpose
The polarization of income has been expanded since 2000, which led to the increase in low income households. The polarization and soaring energy prices have a negative effect on the energy consumption of low income households.
Generally, the income level of households living in small cities and rural areas is lower than that of metropolitan areas. Most households in small cities and rural areas rely on petroleum products like kerosene and LPG for heating, whose prices are much higher than city gas price, because of the restriction of access to city gas. In order to reduce heating costs of households in rural areas and small cities, the government planned to extend infrastructure to supply natural gas to households in these areas. The problem of this plan is likely to lower the economic efficiency of the nation.
Of course, it is very important to reduce heating costs of households in rural areas and small cities. However, policy measures should be based upon the economic rationality. The aim of study is to search various methods to reduce heating costs of households in rural areas and small cities.
2. Summary
The structure of heating energy consumption in the residential sector has changed. The share of city gas has increased during the 2000s, while that of kerosene has decreased, which was the most popular energy for heating during the 1990s. Despite these facts, in rural areas and small cities, most households still depend upon kerosene for heating. This phenomenon results from the restriction of the access to city gas.
The cost for heating of kerosene has increased relatively faster than that of city gas since 2000 because of its soaring price. This implies that many households in rural areas and small cities has experienced greater heating cost burden than those of big cities. So, requirements for the supply of city gas to rural areas and small cities are increasing. Korean government planned to supply city gas to the forty rural areas in 'the 9th Long-range Natural Gas Supply and Demand Plan'. The problem is that the supply of city gas to these areas is not proper economically because of investment in network. It may also cause negative effects on small LPG retailers.
In this study, we analyzed economic efficiency of city gas by length of network and the number of population. There are various unions of length of network and the number of population that city gas is more efficient economically than kerosene and LPG. Supply of renewable energy like wood pallet can be considered as an alternative. To expand the supply of wood pallet, subsidy to wood pallet boiler is needed. Total costs of wood pallet for space heating is higher than those of other fuels because of its high fixed costs. This implies that the existing subsidies for the installment of wood pallet boiler should be maintained. Also, it is important to ensure the stable supply of wood pallet. However, despite various difficulties, the distribution policy of wood pallet should be enhanced.
To reduce heating costs of rural areas, the structure of energy prices should be improved and LPG distribution costs should be decreased.
3. Research Results and Policy Implications
Even though households in rural areas and small cities have lower income than those of big cities, their access to relatively cheap fuel like city gas is very restricted. They are heavily reliant on kerosene for heating whose price is much higher than city gas. This implies it is very imminent to reduce fuel costs of households in rural areas and small cities.
We can consider various policies like the expansion of city gas dissemination, the increase in the supply of wood pallet, the improvement of fuel energy price system, and the introduction of more efficient LPG distribution structure. Unfortunately, even these policies can not solve heating costs problem of rural areas and small cities, completely. They are just helpful partially.
Subsidies for heating to households in rural areas and small cities can be alternatives. Households excluded from cash benefit for low income households under minimum living cost should be considered.
Language : Korean |
| URL | http://www.keei.re.kr/web_keei/en_publish.nsf/by_report_year/2DA4B8FB55DED317492578340001E90B?OpenDocument
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| 来源智库 | Korea Energy Economics Institute (Republic of Korea)
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| 资源类型 | 智库出版物
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| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/322561
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推荐引用方式
GB/T 7714 |
K. S. Park. A Rational Supply of Heating Energy to Small Cities and Rural Areas. 2010.
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