Business Issues: Research and Action Agenda IAEE Pre-Conference Workshop on Clean Cooking Fuels 6/17/2008

Understanding Markets Markets are naturally segmented by income but distorted and thin Best served by different business models and actors Research Agenda: –Demand Elasticities –Systematic study across cases of success and failure –Leakage across segments due to distortions (e.g. subsidies) Action Agenda –Work with MNCs doing market research to obtain and use data appropriately

Incentives Voluntary incentives versus mandatory change Research Agenda: –Better understanding of incentive mechanisms (economic and social) Action Agenda: –Preparation of Bulletin and Workshop Session

Role of Manufacturers Quality control issues Incentives to enter the market Research Agenda: –Study of manufacturer promotion programs Action Agenda: –Targeting manufacturers with incentive programs (e.g. VAT reductions) tied with things like quality standards –Highlight programs that are focused on manufacturers

Role of Large Corporations In theory have all that is necessary to work in this area, but don’t in reality. Question of who focal point is that links MNCs to consumer Research Agenda: –Use of different types of local diffusion agents, linked to technology diffusion literature –Look at how non-energy BoP work being done by MNCs –Possible impact of supply chain improvement Action Agenda –Reach out to MNCs that are currently working in BoP and those that have a natural alliance for this problem

Micro-Finance Not always match between this problem and usual micro-finance models Research Agenda: –Study few cases that have been tried Action Agenda –Development of new micro-finance models

New Philanthropists Low awareness among new philanthropists Action Agenda: –Targeted awareness raising

Larger Energy Users Small businesses and institutions Higher ability to pay Can demonstrate technology principles Research Agenda: –Understand role in technology diffusion –Understand specific needs Action Agenda: –More targeted programs

Supply Chain Issues Rise in input prices for manufacture Change in valuation of local goods Fluctuations in fuel prices Research Agenda: –How to create energy portfolios, esp. in urban –Impact on spurring innovation in materials, etc. –Change in biomass supply economics when create demand

Awareness Raising Is it necessary to highlight health issue? Are aspirational goals a better motivator? Research Agenda: –What are the motivators? –What types of campaigns work and why? Action Agenda: –Develop awareness campaigns –Strengthen link to stove design