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ELSEVIER PII:S0301-4215(96)00084-5

Energy Policy. Vol. 24, No. 12, pp. 1089-1099. 1996 Copyright © 1996 Elsevier Science Ltd

Printed in Great Britain. All rights reserved 0301-4215/96 $15.00 + 0.00

Analysis of household energy demand in Vietnam

Nguyen Anh Tuan Institut d 'Economic et de Pofitique de 1 'Energie, BP 47, 38040 Grenoble, Cedex 09, France

Thierry Lefevre Asian Institute o f Technology, GPO Box 2754, Bangkok 10501, Thailand

Household energy demand in Vietnam is analysed based on a recent household energy survey in four northern provinces. Energy consumption patterns by fuel type and by end use are analysed. The ef- fects of income on these patterns are also examined for different categories of households. Widely held beliefs about energy use and behaviour have been given actual value. Copyright © 1996 Elsevier Science Ltd. Keywords: Household; Energy; Analysis

In recent years, Vietnam has started taking a serious stand to counter energy crises. In order to achieve a rational en- ergy planning and policy formulation and adoption, efforts have been made to understand the energy use behaviour at micro and macro level. In Vietnam, a few studies have at- tempted to arrive at energy consumption of households; but they lack appropriate analysis and adequate data on fuel use. No effort has so far been made to evaluate household energy demand patterns.

It is evident that further analysis of energy use and en- ergy policies of Vietnam is very important. Most quantita- tive assessments of household energy use and alternative energy policies do not focus on the impact of higher energy prices on the reallocation of expenditures between different forms of energy, between energy and non-energy products and the role of income (economic growth) in determining the rate of increase in the energy demand.

The existence of reliable, disaggregated information on household fuel consumption and supply is essential to the formulation of sound energy strategies. Thus, there is a seri- ous need for carefully developed and maintained data on household fuel consumption and supply so that planners and policy makers can identify, quantify and address the key issue relating to the household energy. This study will try to process and to analyse gathered data on household energy use to identify problems and trends.

The energy demand analysis in household sector in- volves assembling and presenting of a consistent set of data on consumption of various forms of energy, quantifying the

relationship of energy demand with relevant economic and non-economic variables such as income, population, prices of different energy sources and their substitutes, changes in technology etc. In Vietnam household energy consumption may account for a more significant share in total energy consumption than is generally assumed.

The main difficulty faced by the household sector in analysing energy demand is availability of data, especially of end use breakdown of energy consumption. A dedicated, nationwide household energy survey can be the most effect- ive means of generating relevant data for planners, policy makers and evaluators. For a long period, the only data used in general planning were obtained at the macro level. How- ever, successful planning depends on the quantity and qual- ity of information at micro level. In October 1992 the Ministry of Energy, in cooperation with the ESMAP (En- ergy Sector Management Assistance Programme - World Bank) carried out a general evaluation of household energy in Vietnam. The survey included 1600 households in the four northern provinces of Hanoi, Hatay, Haihung and Vinhphu. The content of the survey included household so- cial---economic positions, present energy consumption and attitudes toward different types of energy. The following analysis is based on that energy survey.

E n e r g y c o n s u m p t i o n p a t t e r n s

Electricity, coal, kerosene, fuelwood and residues in various forms constitute the primary fuels used by the households

1089

1090 Analysis of household energy demand in Vietnam: N A Tuan and T Lefevre

Table 1 Share of household using specific type of fuel (%)

Province Electricity Coal Kerosene Fuelwood Residues

Hanoi Urban 100 78 53 75 14 Rural 97 52 68 81 62.5

Hatay Urban 98 48 59.5 76.5 25.5 Rural 94.5 42 74 83 62.5

Haihung Urban 99 71 93 83 38 Rural 96 49 94 59 63

Vinhphu Urban 99 67.5 81 92 17 Rural 87 55 88.5 75 78.5

in Vietnam. The percentage of households using certain types of fuel varies across the surveyed areas depending on the availability of the fuel (Table 1). Almost all households use electricity, but the trend is slightly different between rural and urban areas. The percentage of households having access to electricity is higher than in most developing coun- tries due to the government 's strong policy emphasis on rural electrification. The percentage of households using coal varies notably depending on its avalability. There is a sharp difference between urban and rural households in using residues; these are used as an alternative cooking fuel when there is no adequate availability of coal.

Patterns by fuel type

The household energy survey provided information that can be used to understand the energy problem in the household sector better. The results of the analysis by fuel type are given in Table 2. An analysis by fuel type reveals that coal consumption is a major determinant of the total energy amount that is used in households. Moreover, there are great differences in fuel mix between rural and urban households.l The amount of energy use in households varies partly as a consequence of the availability of residues; in rural areas, where residues are readily avail- able, people use much more energy than in urban areas, partly as a consequence of stove efficiency in these areas (see below).

Coal consumption In the four provinces included in this analysis, coal is extensively used and may be an important option in the future, since it is readily available and relat- ively cheap among commercial energy sources for the households in these areas. Coal use in urban areas is higher than in rural areas, where fuelwood and residues are avail- able and substitute coal as energy fuel. The survey results indicate that actual coal use in households of these provinces is nearly 10 times higher than the official estima- tions. This fact is not surprising as the Coal Bureau moni- tors only mined coal, leaving coal brought in by farmers and small entrepreneurs out of official figures. Coal pro- vided 30.1-34.6% of total primary energy consumption in rural areas and 41.1-62.4% in urban areas. Coal is the pre- dominant energy source for the urban and rural households.

tThe definitions of urban and rural follow the Viemam Population Census 1989.

Electricity use 2 Access to electricity varies little from urban to rural areas; the percentage of households using electricity is as high as 98-100% in urban areas, but varies from 77% to 100% in rural areas. Electricity is supplied from the national electric network. Despite the prevalence of electricity network throughout these villages, strict conser- vation measures, including suspension of electric supply in certain areas, restrictions on the opening hours of public places and display lighting have been applied, and com- plaints on the quality of the electric supply are frequent.

The pattern of electricity use varies from one region to another. The urban region of Hanoi uses more electricity than other regions, while the rural region of Vinhphu uses less electricity. In general, households in urban areas use more electricity than their rural counterparts and in percent- age terms, the difference can be as high as 200%. Electric- ity is used for lighting as basic energy demand, and for electric appliances, only little part of electricity is still used for cooking.

Fuelwood use Table 2 shows that fuelwood accounts for about 20% of the total energy consumption in households (or around 35 kgoe pa). This figure is somewhat less than reported in MoE (1987). According to that report, average per capita consumption was found to be about 1.5 kg wood equivalent per day or 160 kgoe pa for the Red River Delta. Fuelwood is mostly used for cooking, while a small part is used for pigfeed preparation. Fuelwood which is partly freely gathered appears to be a transition fuel between residue which is entirely gathered and coal which is entirely purchased.

Residue use The pattem of residue use depends on residue availability. Very small quantities of residues are used in urban areas while they account for a large portion in rural areas, particularly in regions far away from coal mines. For example, in Haihung rural area, residues account for around 48.9% of total household energy demand, whereas in Hanoi urban households, residues account for as low as 1.61% in the household energy demand.

2A measure of average annual consumption was calculated as electricity fees divided by price. From the survey we have only information on the electricity bills that households have to pay for the electricity used for the last year, so we estimated the electricity consumption by dividing the an- nual fees paid on electricity to the official tariff.

Analysis of household energy demand in Vietnam: N A Tuan and T LeJevre 1091

Table 2 Energy consumption by fuel type (kgoe pa)

Fuel type Province Electricity Coal Kerosene Fuelwood Residues Total

Hanoi Urban 16.98 79.03 3.15 25.4 2.04 126.6 % 13.4 62.4 2.49 20.1 1.61 100 Rural 11.06 57.99 4.0 48.21 46.22 167.48 % 6.6 34.6 2.39 28.8 27.6 100

Hatay Urban 16.33 50.24 2.7 46.64 6.28 122.19 % 13.4 41.1 2.21 38.2 5.14 100 Rural 7.04 42.69 2.75 57.03 32.33 141.84 % 4.96 30.1 1.94 40.2 22.8 100

Haihung Urban 8.79 73.59 3.38 34.59 1.51 121.86 % 7.21 60.4 2.77 28.4 1.24 100 Rural 7.2 51.84 2.68 23.47 81.56 166.75 % 4.32 31.1 1.61 14.1 48.9 100

Vinhphu Urban 13.34 67.69 1.78 37.6 3.17 123.58 % 10.8 54.8 1.44 30.4 2.57 100 Rural 6.61 54.27 2.04 30.46 71.3 164.68 % 4.01 33 1.24 18.5 43.3 100

Table 3 Ownership of electric appliances and cooker stove (%)

Hanoi Hatay Haihung Vinhphu Urban Rural Urban Rural Urban Rural Urban Rural

Electric appliances Average wattage for lighting 210 190 160 150 140 130 170 90 Electric cooking appliances 75.2 42.9 65.0 19.8 43.0 26.0 61.4 18.0 Electric fans 96.4 95.7 97.5 84.8 93.0 84.5 99.0 77.8 Electric iron 67.9 37.2 71.0 39.6 57.0 25.0 60.4 13.9 Television set 75.8 62.8 74.0 37.6 52.0 45.5 76.2 28.9 Other audio-video appliances 37.7 49.8 49.5 36.5 33.0 22.5 52.5 11.9 Refrigerator 27.5 12.6 23.5 8.6 11,0 5.0 18.8 0.5 Water pump 15.9 21.3 0.5 1.0 26.0 7.5 5.9 1.0 Other electric appliances 8.9 3.7 9.5 5.1 10.0 0.5 11.9 2.1

Cooker stoves Kerosene-wick 37.4 26.6 4.5 4.6 27.0 10.0 12.9 0.5 Coal briquette 61.9 33.2 26.5 8.1 57.0 35.0 45.5 19.1 Coal patty 21.2 12.0 21.5 35.5 18.0 19.5 23.8 35.1 Rice husks 7.3 10.3 3.5 17.8 8 15 4 16.0 Sawdust 8.9 4.0 6.5 2.5 25.0 4.0 9.9 1.5 Improved with chimney 0.3 0.0 0.0 14.2 0.0 1.0 0.0 1,0 Trivet-single 51.0 37.5 33.0 43.1 64.0 42.5 44.6 62,9 Trivet-double or more 20.5 56.5 45.5 60.4 30.0 66.5 57.4 65.5

The trade-off between residues and other fuels can be explained by different factors. I f households have access to fuelwood, or can purchase coal, they are likely to burn less residues. The pattern of residue usage in rural areas may be an integral component of a sustainable production relation- ship that has been practice for centuries in these areas be- cause that much of the ash from burning residues is returned to the rice field as a fertilizer.

Kerosene Kerosene accounts for the smallest share in total energy consumption in the household sector. It is mostly used for lighting as spinning reserve for the outage of elec- tricity, but sometimes it is used for cooking in urban areas. The pattern of kerosene use does not vary much among areas; almost all households used between 1.2 litres to 4 litres pa. From Table 2 we can see that kerosene is a basic energy need though it is the most expensive fuel and house- hold cash income does not have significant influence on the pattern of kerosene consumption. Kerosene for cooking purposes is not popular in rural areas and only some house- holds possess kerosene stoves (see Table 3). Though in

urban areas a large proportion of households possess kerosene stoves, they are not in use due to high price of kerosene on free market. The government limits the quan- tity of kerosene at subsidized prices by providing ration cards.

Patterns by end use

Most of energy consumed in surveyed households involves some form of cooking, either for people or animals. Cook- ing food contributes to 58.4% of total energy consumption in Vinhphu rural areas and 78.7% in Haihung urban areas. Although the difference in percentage values is quite signif- icant between rural and urban households, it is not so in ab- solute values. Energy consumed for cooking in urban households is around 90 kgoe pa while rural households consumed around 100 kgoe pa (see Table 4). The import- ance ofpigfeed cooking is illustrated by the fact that in vil- lages, total energy consumption for pigfeed preparation is the second largest use, only less than cooking energy for people. Households in all areas commonly use multiple fuels for cooking. While the data for Hanoi urban area indicates

1092 Analysis of household energy demand in Iqetnam: N A Tuan and T Lefevre

Table 4 Energy consumption by end use (kgoe pa)

End use Electrical

Province Lighting Cooking Hot water appliances Pigfeed Total

Hanoi Urban 4.92 84.7 0.82 10.67 25.49 126.6 % 3.89 66.9 0.65 8.4 20.1 100 Rural 6.03 ! 03.96 0.47 6.01 51.01 167.48 % 3.6 62.1 0.28 3.6 30.5 100

Hatay Urban 4.06 88.3 0.79 12.43 16.61 122.19 % 3.32 72.3 0.68 10.2 13.6 100 Rural 3.93 89.99 0.06 4.92 42.94 141.84 % 2.77 63.4 0.04 3.47 30.3 100

Haihung Urban 5.0 95.87 3.03 5.53 12.43 121.86 % 4.1 78.7 2.49 4.54 10.2 100 Rural 5.98 105.72 0.81 4.57 49.67 166.75 % 3.59 63.4 0.49 2.7 29.8 100

Vinhphu Urban 3.85 89.65 0.00 8.73 21.35 123.58 % 3.12 72.5 0.00 7.1 17.3 100 Rural 4.6 96.19 4.17 4.01 55.71 164.68 % 2.79 58.4 2.53 2.4 33.8 100

that a relatively small proportion o f households use coal for cooking, coal 's share in cooking fuel mix is considerably higher in other areas.

The survey showed that energy consumption by electric appliances accounts for more than that for lighting. These patterns are notably different in urban and rural areas and depend on ownership o f appliances. The most common household appliance is electric fans. More than 85% of the households in rural areas owned them and nearly 97% in urban areas. The second most common appliance is a tele- vision set, once households have obtained lighting and fans. Again, relatively more households in urban areas possessed this appliance than in rural areas. Electricity consumption is closely related to the type and the number o f appliances owned by a household (Table 3)

Energy use for lighting is stable for all household cat- egories but consumpt ion for lighting is slightly more in rural areas. This reflects the fact that rural households use more kerosene, which is less efficient, for lighting while urban households use more electricity for lighting. Another reason is that residences in rural areas are larger with mul- tiple rooms so that they required more energy for lighting. Average wattage for lighting varies in urban areas from 130 W to 210 W per household and in rural areas from 90 W to 190 W per household.

Energy use for hot water is negligible, accounting for less than 1%, except in rural Vinhphu and urban Haihung. However, it should be emphasized that it is difficult to make a distinction between hot water and boiling water for drink- ing, making tea and so on.

The final point that needs to be stressed is that total en- ergy consumption, accounting about 125 kgoe pa in urban households and about 160 kgoe pa in rural households, is much lower than estimated in previous literature. Surpris- ingly the energy consumption in rural areas is about 28% more than in urban areas. The position is quite the opposite when we look at the consumption of useful energy. Here the urban areas show a higher useful consumption for cooking. This is explained by the significantly different fuel compo- sition in rural and urban areas.

Useful energy consumption

The analysis so far has been based on the total amount o f energy consumed for each end use. However, since the effi- ciency of different stoves varies by type o f stove and fuel used, total energy use does not tell how much energy was actually usefully utilized. For this reason, a measure o f use- ful energy for cooking, pigfeed preparation and hot water has been developed. The conversion factors for computing useful energy are listed in the appendix.

Since rural areas used more fuelwood and residues for cooking purposes, and since traditional fuels have very low efficiencies (17% for fuelwood burning stoves and 12% for residues burning stoves - see the appendix), the proportion o f useful energy obtained from total energy used in rural areas is lower than in urban areas.

Per capita useful energy consumption for cooking, pigfeed preparation and hot water is calculated in order to compare consumption level for these tasks. As shown in Table 5, es- timated useful energy consumption for cooking is lowest in the Vinhphu rural area and highest in Hanoi urban area. The analysis also shows that coal plays a more important role in meeting household needs in all areas than is apparent from the share o f coal use in final energy consumption.

The role o f electricity and residues in useful energy con- sumption in urban and rural households are opposite to each other. Rural households consume more residues and less electricity in terms o f useful energy, while in urban areas we see the opposite role for electricity and residues.

The final point is that coal and fuelwood remain pre- dominant fuels in the household sector for cooking and pig- feed preparation. They account altogether for nearly four- fifths o f useful energy for cooking and pigfeed preparation.

Analysis of income effects

There is a trend in households to utilize greater amounts o f high quality fuels such as electricity, coal and kerosene. We will now examine this tendency. With increases in income, the structure of fuel use may be quite different for the rich

Analysis o f household energy demand in Vietnam: N A Tuan and T Lefevre 1093

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1094 Analysis o f household energy demand in Vietnam: N A Tuan and T Lefevre

Table 6 Energy consumption by income group (kgoe pa) Electricity Coal Kerosene Wood Residues Total

Income group (%) (%) (%) (%) (%)

Rural household 1 2.6 1.7 27.7 18.1 2.3 1.5 24.9 16.3 95.3 62.3 152.9 2 5.9 3.5 39.0 23.1 2.4 1.4 29.8 17.7 91.8 54.4 168.9 3 4.2 2.6 38.8 23.8 2.2 1.3 39.1 24.1 78.4 48.2 162.7 4 5.1 3.2 62.8 39.9 2.0 1.3 25,6 16.3 61.8 39.3 157.4 5 6.4 3.9 48.3 29. I 2.0 1.2 47,1 28.4 62.2 37.5 i 66.1 6 8.6 6.0 46.6 32.4 3.0 2.1 45,1 31.4 40.5 28.2 143.8 7 8.3 6.1 44.1 32.4 2.7 2.0 41,2 30.3 39.6 29.i 136.0 8 11.7 7.2 52.9 32.5 3.6 2.2 48.0 29.5 46.4 28.5 162.7 9 17.5 8.7 88.3 43.8 7.1 3.5 60.9 30.2 27.9 13.8 201.6 i0 22.2 7.5 144.2 49.0 7.7 2.6 82.6 28.0 37.9 12.9 294.5

Urban household 1 6.8 6.2 59.9 54.2 1.9 1.7 30.1 27.2 11.8 10.7 110.5 2 8.9 7.4 66.7 55.9 2.5 2.1 36.5 30.5 4.8 4.0 119.4 3 10.4 8,9 65.9 56.9 2.9 2.5 33.1 28.5 3.6 3.1 115.4 4 13.6 0,3 82.5 62.4 2.6 2.0 33.1 25.1 0.4 0.3 132.2 5 11.1 10,7 58.3 56.1 2.6 2.5 30.2 29.1 1.7 1.7 104.0 6 15.4 10,3 89.1 59.5 2.0 1.3 40.3 26.9 2.9 1.9 149,8 7 14.9 1 i ,9 62,9 50.1 2.5 2.0 41.8 33.3 3.3 2.7 125,4 8 17.7 14.3 53.1 43.0 4.2 3.4 45.9 37.1 2.6 2.1 123,5 9 3 i .7 20.8 61.7 40.4 3. I 2. l 53.8 35.2 2.3 1.5 152,7 I 0 34.7 18.9 102.0 55.5 8.3 4.5 37.7 20.5 0.9 0.5 183.7

and the poor. There are many variables which determine or explain the change in quantity and structure of fuel use, but here we consider the most important factor, the income ef- fect. The survey included collection of data on income level, which helps to explain why households choose cer- tain types of fuel, why they use certain amounts of energy. After joining 16 villages into two categories, urban and rural areas, we group them by variable annual income per person (see the appendix).

Income effect on energy fuel consumption

As expected, households tend to consume more energy with an increase in income, and patterns of fuel use are also quite different between urban and rural areas. However, the following general remarks can be made. As income in- creases, consumption of electricity and coal increases but residue consumption decreases and the income effect on kerosene is negligible.

Table 6 shows energy consumption by income group. It is evident that households in the top income group utilize nearly ten times more electricity than those in the lowest in- come level. The structure of fuel use does vary by income class with poorer households more reliant on residues in rural areas and on coal in urban areas, while more wealthy households use more electricity and coal; but the share of coal use in urban households does not change with increase in income. Households in urban areas with increasing in- come prefer to switch to electricity, which is more conve- nient in use and does not pollute the environment.

The analysis of results in Table 6 demonstrate that in both rural and urban areas, the higher income households use less residues than poor households, but a change in unit of income per person causes a smaller change in residue consumption in urban areas. Electricity shows the biggest changes with income per person, meaning that a change of electricity use is largest with a change in income.

For urban areas, the amount of coal consumed shows virtually no change with increase in income. This fact again suggests that urban households tend to utilize more conve- nient fuels such as electricity and kerosene, when their in- come rises. Households in all income categories use substantial amounts of coal for different purposes. As shown in Table 7, the share of coal used for different end uses varies with income; coal use for hot water continues to account for a negligible share of the coal energy mix in the areas surveyed. Rural households use around one-third of coal for preparation of pigfeed and urban households use a lesser amount of energy for the same purpose.

Income effect on end use

Table 8 shows that although the energy use increases with increase in income, the structure of end use does vary a lit-

Table 7 Share of coal use by end use and by income group (%)

Income group Cooking Pigfeed Hot water

Ruml 1 61 39 0 2 53 47 0 3 58 42 0 4 52 46 1 5 56 43 l 6 65 34 1 7 82 18 0 8 64 33 3 9 69 24 7 10 42 58 0

Urban 1 73 26 0 2 84 16 0 3 78 20 1 4 80 20 0 5 89 11 0 6 67 31 0 7 89 10 0 8 77 22 0 9 80 20 1 10 73 24 3

Analysis of household energy demand in I~etnam." N A Tuan and T Lefevre 1095

Table 8 Energy eonsumption by end use and by income group (kgoe pa)

Electrical Income Light Cook Hot water Pigfeed appliances Total group % % % % %

Rural 1 3.75 2.4 98.82 64.4 0.29 0.2 49.46 32.2 1.14 0.7 153.46 2 4.53 2.7 94.59 56.2 0.61 0.4 64.82 38.5 3.65 2.2 168.20 3 3.82 2.3 101.87 62.6 1.65 1.0 53.13 32.7 2.25 1.4 162.72 4 3.94 2.5 96.06 61.0 1.84 1.2 52.90 33.6 2.72 1.7 157.46 5 3.94 2.4 102.11 61.5 1.86 1.1 54.19 32.6 3.95 2.4 166.05 6 4.54 3.2 90.26 62.7 1.13 0.8 42.05 29.2 6.08 4.2 144.06 7 4.52 3.3 95.06 69.9 0.54 0.4 30.66 22.5 5.24 3.9 136.02 8 5.30 3.3 104.09 64.0 1.34 0.8 43.68 26.9 8.25 5.l 162.66 9 9.02 4.5 118.08 58.5 2.56 1.3 63.43 31.5 8.59 4.3 201.68 10 9.40 3.2 156.46 53.1 1.88 0.6 113.49 38.5 13.28 4.5 294.51

Urban 1 3.95 3.6 80.79 73.1 0.23 0.2 22.24 20.1 3.27 3.0 110.48 2 3.88 3.3 93.52 78.3 0.34 0.3 16.40 13.7 5.23 4.4 li9.37 3 4.10 3.5 85.59 74.0 0.74 0.6 18.75 16.2 6.55 5.7 115.73 4 4.82 3.7 92.39 70.4 2.69 2.0 22.73 17.3 8.64 6.6 131.27 5 4.35 4.2 83.57 80.4 0.19 0.2 8.62 8.3 7.24 7.0 103.27 6 4.60 3.1 102.68 68.5 0.41 0.3 32.92 21.9 9.37 6.2 149.98 7 4.32 3.4 94.49 75.3 0.13 0.1 16.43 13.1 10.10 8.0 125.47 8 5.42 4.4 92.99 75.2 0.14 0.1 14.34 11.6 10.78 8.7 123.67 9 5.50 3.6 98.66 64.5 3.38 2.5 19.37 12.7 25.61 16.7 152.97 10 6.59 3.6 114.20 62.2 3.60 2.0 35.36 19.3 23.92 13.0 183.67

tie. As income rises, energy consumption for lighting pur- poses increases but its share changes a little. The energy used for electric appliances shows the largest increase with increased income. In rural areas, energy used for appliances increases from 1.14 kgoe pa in the lowest income group to 13.28 kgoe pa. in the highest income group. Its share also increases rapidly from 0.7% to 4.5% in rural areas, from 3.0- 13% in urban areas.

The percentage of energy for cooking and pigfeed use by wealthy households is less than poorer households. This phenomenon prompts us to examine more carefully this item. After excluding energy use for pigfeed preparation

from total energy use, we calculated the percentage of en- ergy consumed per household for cooking purpose. Results are presented in Figure 1. We can draw empirical general- ization about household behaviour. The proportion of en- ergy consumption in households devoted to cooking declines as income rises. In other words, cooking energy is a necessity whose consumption rises less rapidly than does income. After verifying all 16 villages separately, this hypothesis holds true not only within urban and rural areas but also across villages and the whole sample.

Table 9 shows the share of energy use for cooking in the surveyed households. Two characteristics could be seen in

95

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Income group

Figure 1 Percentage of cooking energy by income group

Rural

Total households

Urban

1096 Analysis of household energy demand in Vietnam: N A Tuan and T Lefevre

Table 9 Share of cooking energy use by fuel type and by income group (%)

Income group Electricity Coal Fuelwood Kerosene Residues

Rural 1 0 19 8 0 73 2 0 24 11 0 66 3 0 28 11 0 60 4 0 42 3 0 54 5 1 37 21 0 41 6 1 48 35 0 17 7 1 48 33 0 18 8 1 54 30 1 13 9 2 47 22 4 24

10 2 37 20 0 42 Urban

1 2 61 0 22 15 2 l 70 1 22 7 3 2 67 2 25 4 4 3 72 1 25 1 5 2 69 1 27 1 6 4 69 0 26 2 7 2 62 1 35 0 8 5 48 2 43 2 9 3 54 1 40 2

l0 6 55 6 33 1

Table 10 Share of lighting energy by fuel type and by income group (%) Income group Electricity Kerosene

Rural 1 38 62 2 48 52 3 43 57 4 48 51 5 50 50 6 46 54 7 48 52 8 56 44 9 52 48

10 46 54 Urban

1 59 41 2 54 46 3 56 44 4 52 48 5 48 52 6 62 38 7 59 41 8 53 47 9 63 37

10 68 32

the choice of cooking fuel in urban and rural households: they are increasingly replacing residues with kerosene and electricity in urban areas and with coal and fuelwood in rural areas. According to the survey results presented in this table, residues used for cooking have declined from 73% of cooking energy in the low income rural households to 41% in the high income group, and from 15% in low income urban group to an insignificant level (1%) in high income group. Coal use for cooking remains significant in all in- come groups. As income levels rise, the share of coal in the cooking fuel mix tends to drop in urban households (from 61% to 55%) and tends to increase in rural households (from 19% to 36%). Various factors affect these contrary transitions: income levels, the availability of fuels, environ- mental impacts, government policies and household activ- ity patterns. High income households in urban areas tend to use larger portions of kerosene and electricity; although they are expensive, they are convenient and fast to use and do not pollute the neighbour's environment. The govern- ment provides ration cards on kerosene to urban (govern- ment employee) households only. Rural households could not afford to use expensive fuels and another reason for using coal is that once they finish cooking, they can con- tinue to use coal stoves for pigfeed preparation.

As for lighting, income has the same effect on the choice of energy for lighting (Table 10). As income increases, households in both rural and urban areas prefer electricity for lighting as there is high degree of electrification in all the surveyed villages; but due to conservation measures mentioned above and due to frequent outages, households commonly use both kerosene and electricity for lighting.

Fuel substitution

Interfuel substitution may be caused by a number of different factors, but it is usually based on the household perception of the costs, efficiency, convenience or appropriateness of a par-

ticular fuel. The fuel mix used by a particular household then results from its subjective assessment of its status. It would be convenient to assume that each household optimizes some carefully formulated rules. The objective of studying existing fuel use patterns is to attempt to discover what those rules might be, and to understand which factors are most respon- sible for determining existing consumption patterns. In the case of Vietnam, markets for many commodities, including energy fuels, are either at a fledgeling stage of development or non-existent. Prices may be controlled or subsidized. Al- though income inequalities have begun to emerge, income distributions demonstrate relatively little variation compared with other countries. As a result of these factors, interfuel substitution, usually brought about by shifting prices or in- comes, may be difficult to discern.

Figures 2 and 3 present the energy share of different fuels (fuelwood, coal etc consumption divided by total household energy use) as a function of household income. Clearly, across the range of incomes examined, the share of coal use increases in rural households but for urban house- holds, it is not as clear cut as might be expected.

In rural areas, coal and wood serve as substitutes for residues, but in urban areas, households with low income levels appear to utilize more wood and residues to make up for the deficiency of electricity and kerosene. And in urban households, residues play a small role in energy use. Here we can see clearly that coal and wood substitute for each other. When the share of coal increases, the share of wood decreases and vice versa.

Differentiation between households: cluster analysis

It was evident earlier that a change in income does change both the amount of fuel consumed and the structure of fuel mix. Moreover, the household's decision on the type of fuel

Analysis of household energy demand in Vietnam: N A Tuan and T Lefevre 1097

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50

40

30

20

10

0

. Coal

f J

s s / t

t /

i j

J

",-~ " . . . . . . . . . . . . . . . . . . : - : 4 . . . . . . . . . . . . . . . . . Wood

. . . . . . . . . . . . Residues

. . . . . . . . . . . - ~ - . . . . Electricity

- - - - - - - - - - - - - - - Kerosene I I I ] F I I I r

2 3 4 5 6 7

Income group

Figure 2 Energy share by income group in rural areas

8 9 10

7 0 -

6 0 -

5 0 -

4 0 -

3 0 -

2 0 -

1 0 -

0

1

I " ' ' " ' - . .

" " " . . . . . , Coal . . . . . . . . . . . . . . . . . . . . " , j /

• /

, . , , " . . . . . . . . . . .

, , . . . • . " . . . . . . . . . . • , , • • • • . ' " " ' . • • , . ' - - , , . . . ••" • , . • , , • "

"'. Wood

. . / Electricity

- Kerosene . . . . . . . . . . . . . " . ~ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - Residues f I - " ~ " r ' . . . . . . . . . . i [ I i i i

2 3 4 5 6 7 8 9 10

Income group

Figure 3 Energy share by income group in urban areas

to use and its energy consumption behaviour was assumed to be different with each type of fuel. Therefore we would like to make it clear whether there was a distinction be- tween households having different incomes. It is essential for energy planners to learn from the differentiation of groups of households using various types of fuel since the way they cope with their energy problems may not be the same.

In order to establish a household typology, the cluster analysis technique was used. The ultimate goal is to estab- lish categories of households with similar characteristics.

Results indicate that per capita income is the most import- ant value in describing household energy consumption. Households in Vietnam are relatively homogeneous in en- ergy consumption.

From Table 11, we can see that in rural areas, house- holds type 1 consumed least energy which is mainly ac- complished by using wood, coal and residues• Households type 2 are poorest among four types of households because number of persons in these households is largest. They can- not afford to use electricity and kerosene, but they use more residues instead. Households type 3 consume the highest

1098 Analysis of household energy demand in Hetnam: N A Tuan and T Lefevre

Table 11 Household classification Cluster (household type)

Variables 1 2 3 4

Rural Number of persons Income per person (103 dong) Electricity consumption (kgoe pa) Coal consumption (kgoe pa) Kerosene consumption (kgoe pa) Wood consumption (kgoe pa) Residues consumption (kgoe pa) Number of case in each type

Urban Number of persons Income per person (103 dong) Electricity consumption (kgoe pa) Coal consumption (kgoe pa) Kerosene consumption (kgoe pa) Wood consumption (kgoe pa) Residues consumption (kgoe pa) Number of case in each type

4.88 5.58 3.88 3.50 1732.74 803.09 4435.50 8447.08

11.68 4.72 35.05 22.16 49.27 43.92 147.69 0.00

4.61 2.19 10.75 13.41 53.98 33.86 97.90 114.48 35.33 75.83 42.76 289.00

373 480 26 2

4.44 4.38 1.00 5.51 2367.87 4873.51 9810.00 1219.58

23.54 34.65 66.70 10.73 71.17 66.30 47.70 69.52 4.23 9.75 6,19 2.41

40.92 73.53 194,40 34.55 1.40 3.40 0,00 4.72 247 18 2 433

amount of coal and electricity along with a significant amount of fuelwood. Households type 4 consume most en- ergy, relying mostly on fuelwood and residues. They have highest income because they use residues and fuelwood for pigfeed preparation; in rural areas, pig raising in house- holds is a significant source of income.

In urban areas, household type 1 consumes the highest amount of coal; they use few residues; their income is nearly twice as high as the income of the lowest household type 4. Households type 2 consume the highest amount of kerosene along with a significant amount of wood and coal; their income is high but not the highest. Households type 3 consume the most energy, almost twice as much as type 2; this group is the richest of the four groups. They rely mostly on fuelwood and do not use residues as energy; they also consume the highest amount of electricity and the lowest amount of coal. Households type 4 are the poor- est with the highest number of persons in the household; they consume least energy, but most residues; they have no cash to afford electricity and kerosene, so their consump- tion of electricity and kerosene are least of the four types of households.

S u m m a r y

The quantity and the structure of household energy con- sumption varies from province to province. The four provinces investigated in this study cover an area of 15 060 km 2 with population of about 10 million people in the North of Vietnam. Three provinces namely Hanoi, Hatay and Haihung are considered rich by Vietnam standards at the time of survey 1992, and the last province, Vinhphu, is middle by standards. These four provinces are highly repre- sentative of the Red River Delta and Northern upland area, which are considered an area with plentiful energy re- sources. The quantity and the structure of energy consump- tion are determined by a wide range of factors, but in this paper we were restricted to consider only some factors such as economic conditions, and availability of resources.

All four provinces investigated in this study exhibit dif- ferent energy use patterns but these differences are in a rel- atively narrow range within urban or rural areas. However, there are big contrasts between rural and urban areas due to availability of resources and income. Urban households use less energy than rural households. Per capita energy con- sumption averages only 145 kgoe pa with the structure of fuel consumption and end use shown in Figures 2 and 3. Among the fuels consumed in the household sector, coal is still widely used, accounting for about 41% of total energy consumption; fuelwood is the second important energy source in the household sector, accounting for 26%. Alto- gether energy consumption for cooking purposes and pigfeed accounts for 91% of energy use.

Useful energy consumption analysis shows that there are few differences among categories of households, and the total useful energy consumption varies from a minimum of 21.4 kgoe pa in urban households of Hatay province to a maximum of 28.4 kgoe pa in rural areas of Hanoi province. Coal and fuelwood play even more important roles than they do in primary energy consumption.

It was found that income is a strong factor which affects quantity and structure of energy use. With increase in in- come, households tend to utilize more electricity and less residue. The survey results indicate that this increased re- liance on modem fuels stems from a preference among con- sumers for more convenient and readily available fuels. Because of deforestation and the increasing scarcity of residue, this fuel has become more costly. Biomass fuels (fuelwood and agricultural residue), traditionally the im- portant household energy source in Vietnam, currently play only limited roles in most urban household activities.

The most significant finding is that cooking energy is a necessity whose consumption rises less rapidly than does income. So the indicator of cooking percentages could be used as one of the measures to gauge the well-being of households.

Fuel substitution is obviously found to be connected with a rise in income. People with better income tend to uti-

Analysis o f household energy demand in Vietnam: N A Tuan and T Lefevre 1099

lize more modern, convenient and clean energy. In rural areas, coal and fuelwood serve as a substitute for residues, but in urban areas coal and fuelwood are being substituted for each other.

It should be stressed that these patterns of energy con- sumption represent the analysis o f four provinces in North- ern Vietnam (the Red River Delta), and they are not intended to describe the entire Vietnam household energy situation. But the results are most noteworthy for their quan- tification of the energy situation. Widely held beliefs about energy use and behaviour have been verified.

Acknowledgements

The study benefited from the support of the Energy Insti- tute, who provided valuable materials and data during the course o f the study and from the financial support o f the Asian Institute o f Technology (Bangkok, Thailand).

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Appendix

Conversion factors and average stove efficiency

Conversion factors: The following energy conversion factors will be used to convert the energy con- tents o f d i f ferent fuels to one standard 1 kg wood = unit. The standard unit will be kilogram 1 kg kerosene = o f oil equivalent (kgoe), with the stan- 1 kg residues = dard unit o f oil equal to 10 000 kilocalo- 1 kWh electricity = ries per ki logram (Energy Institute, 1 kgcoal = Hanoi). 1 kg LPG =

3600 kcal 10 320 kcal 3400 kcal 840 kcal 5300 kcal 10 800 kcal

Average stove efficiency:

Fuelwood stoves Residue stoves Coal stoves Electric stoves Kerosene stoves

17% 12% 22% 60% 43%

Household group by annual income per person

Income group Actual income (10 3 dong VN pa) Urban Rural

I Lowest-915 Lowest-590 2 915-1090 590-720 3 1090-1200 720-836 4 1200-1360 836--965 5 1360-1500 965--1110 6 1500-1680 1110-1270 7 1680-1960 1270-1440 8 1960-2310 1440-1700 9 231 0-2760 1700-2265 ! 0 2760-Highest 2265-Highest