Energy poverty remains one of the most critical issues in developing countries as they largely depend on traditional forms of energy. Responding to the article by Sagar (2005), I would like to emphasize that the establishment of a special fund to assist the mentioned countries in alleviating energy poverty is a feasible idea. Based on an incremental levy on petroleum, it would be possible to ensure an environmentally-friendly approach of the global petroleum companies and provide better access to energy infrastructure. More to the point, as stated by Sagar (2005), such an approach would contribute to the reduction of gas emissions as well as the improvement of social and economic benefits.
Elaborating on these ideas, I can suggest that not only energy poverty but also fuel poverty is to be taken into account to resolve the identified problem. Since fuel poverty is understood as energy ineffective housing system, this problem may affect health, living conditions, and equity (Li, Lloyd, Liang, & Wei, 2014). I believe that energy poverty and fuel poverty are closely connected, and the proposal of a special fund should be based on both problems. It seems that the low income is the key factor that causes the above issues by decreasing both inappropriate access and affordability to energy resources. In my point of view, there is an urgent need to conduct further researches and come up with a solution that would address them.
On a global perspective, another essential point I would like to discuss is the potential impact of petroleum levy on the environment. It is possible to agree with Bouzarovski and Petrova (2015), who claim that decreased emissions and a worldwide move to the use of biofuels are two key implications. I consider that the Climate Convention should support the initiative proposed in the given article. This initiative goes in line with the United Nations Framework Convention on Climate Change (UNFCCC) regarding equity and sustainable development. The members of the Organization of the Petroleum Exporting Countries (OPEC) should also contribute to the global aim of making energy consumption more environmentally oriented (Day, Walker, & Simcock, 2016). Considering the social and economic benefits, I would like to provide some additional ideas on how to ensure the effective implementation and maintenance of the special fund. For people at risk of energy poverty, a plan for social subsidies and other protection measures is to be developed. Within such a plan, people with low income, unemployed persons, and other vulnerable categories of citizens are to be given a discount on electricity services (Andadari, Mulder, & Rietveld, 2014; González-Eguino, 2015). Also, according to this plan, the electricity supply of their households should not be turned off, even if they have unpaid bills.
Overall, in my point of view, the fund suggested by Sagar (2005) is a rather perspective solution that can address the problem with energy poverty comprehensively. In particular, social, economic, and environmental aspects would be considered. This article’s main contribution to the existing evidence is that it attempts not only to study the problem but also to resolve it through a credible plan. As for the needs for further research, I guess that such areas as the alignment of energy poverty with fuel poverty, the distribution of the special fund, as well as the impact of the levy on petroleum on the low-income population should be explored.
References
Andadari, R. K., Mulder, P., & Rietveld, P. (2014). Energy poverty reduction by fuel switching. Impact evaluation of the LPG conversion program in Indonesia. Energy Policy, 66, 436-449.
Bouzarovski, S., & Petrova, S. (2015). A global perspective on domestic energy deprivation: Overcoming the energy poverty–fuel poverty binary. Energy Research & Social Science, 10, 31-40.
Day, R., Walker, G., & Simcock, N. (2016). Conceptualising energy use and energy poverty using a capabilities framework. Energy Policy, 93, 255-264.
González-Eguino, M. (2015). Energy poverty: An overview. Renewable and Sustainable Energy Reviews, 47, 377-385.
Li, K., Lloyd, B., Liang, X. J., & Wei, Y. M. (2014). Energy poor or fuel poor: What are the differences?. Energy Policy, 68, 476-481.
Sagar, A. D. (2005). Alleviating energy poverty for the world’s poor. Energy Policy, 33(11), 1367-1372.