Restoring Balance: Bangladesh's Rural Energy Realities

Page 71

11984-04_Ch04.qxd

3/4/10

12:53 PM

Page 44

44 World Bank Working Paper

Table 4.9. Paddy Productivity in Boro Season by Land Ownership (gross value in Tk/decimal) Technology Land Ownership (decimal)* 1–49 50–249 250–500 >500 Average

Observed Low-energy 164 141 96 80 118

High-energy 147 (–10) 145 (3) 146 (52) 141 (76) 145 (23)

Estimated Low-energy 140 123 99 89 107

High-energy 149 (6) 144 (17) 138 (39) 130 (46) 141 (32)

Source: BIDS Survey (2004). Note: Figures in parentheses represent percentage change over the low-energy situation. *1 decimal = 50 square yards.

tributed. Table 4.9 illustrates the issue for boro paddy production. Both sets of observed and estimated yield figures for low-energy technology users exhibit the classic pattern of negative size–productivity relationship. But the observed yields for high-energy technology users are similar for every land-ownership class. The change in land productivity from energy use is likely masked by the influence of other factors. Although both observed and estimated yields fall with rising land ownership, the one high in energy use declines at a slower rate than the one low in use, indicating increasingly greater gains from higher farm technology (energy) use. The percentage differences in estimated yields for high energy use are somewhat less than those for the observed figures, but the patterns are similar. Furthermore, the average gain is 32 percent (Tk 3,400), nearly double that suggested initially by the regression equation. The conclusion is that farm households that move up the energy ladder enjoy a substantial gain in productivity and can provide irrigation or purchase irrigation water for their farms. About 50 percent of the average gain in transitioning from lower- to higher-energy technology is derived from switching to more intensive irrigation using mechanized (diesel or electric) irrigation pumps, with complementary factors accounting for the other 50 percent.

Overall Income Gains: Moving Up the Energy Ladder Thus far, this chapter has examined some of the gains derived from using more modern energy for the specific areas of lighting, cooking, and irrigation. This section examines more general income gains that can be derived from moving up the energy ladder, many of which overlap with those already described. In short, the gains described in this section are a more general indicator of the value of the changes that result from improved cooking and living standards made possible by better ways of using energy.

Cross-sectional Correlations of Electricity Use and Income This study survey measured household income separately for business and wage-related activities. More specifically, there are four measures of income, including agriculture


Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.