Incentivizing a Sustainable Clean Cooking Market : Lessons from a Results-Based Financing Pilot in Indonesia
Access to clean cooking solutions remains one of the most daunting development challenges. Based on the latest Global Tracking Framework, the annual access growth rate of 0.46 percentage points did not keep pace with population growth. In fact, the...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/173331531226135009/Incentivizing-a-sustainable-clean-cooking-market-lessons-from-a-results-based-financing-pilot-in-Indonesia http://hdl.handle.net/10986/30181 |
| Summary: | Access to clean cooking solutions
remains one of the most daunting development challenges.
Based on the latest Global Tracking Framework, the annual
access growth rate of 0.46 percentage points did not keep
pace with population growth. In fact, the global population
without access increased by 2 million annually, reaching
2.98 billion in 2016, which has profound impacts on public
health and gender equality, poverty alleviation,
environmental quality, and climate change. Because cooking
is a highly contextualized system, local innovation and
contextualized solutions are critical for long-term
sustainability. Incentives or subsidies will be needed to
achieve universal access to modern energy cooking solutions.
Government policies are needed to (i) establish and maintain
adequate levels of subsidy and (ii) design and implement
effective subsidy allocation mechanisms to mobilize and
sustain private-sector participation in scaling up access to
modern cooking solutions and targeting households who have
an affordability gap. The pilot experience in Indonesia
shows that the results-based financing (RBF) framework can
be an effective tool for unifying key elements for
developing a sustainable clean cooking market. Development
and implementation of the RBF pilot program under the
Indonesia Clean Stove Initiative (CSI) confirm that RBF is a
replicable and scalable mechanism for using public resources
to incentivize the clean stoves market and can be adapted to
other country contexts. |
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