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<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>Thank you, Crispin. <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>That was a very appropriate reminder about
the impact of both culture and function on price. The reference to living
on $2 a day was just short hand for poor people and you are correct that they
will be motivated by different factors. <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>Still, I’d just like to see, across
the developing world, what stoves are really going for. For example, will
people really buy a stove for $50 if its fuel costs and emissions are really
low, its efficiency really high, and there is a financing mechanism that applies
the fuel savings to the purchase price of the stove? It sounds like they
might not even if a good case can be made for it on a spreadsheet. It
would be interesting to try to track the differences and know why a stove
succeeds in one place and not another. I’d be very interesting in
Cecil Cook’s analysis.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'>Jan<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color=navy face=Arial><span style='font-size:
10.0pt;font-family:Arial;color:navy'><o:p> </o:p></span></font></p>
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<p class=MsoNormal><b><font size=2 face=Tahoma><span style='font-size:10.0pt;
font-family:Tahoma;font-weight:bold'>From:</span></font></b><font size=2
face=Tahoma><span style='font-size:10.0pt;font-family:Tahoma'> stoves-bounces@lists.bioenergylists.org
[mailto:stoves-bounces@lists.bioenergylists.org] <b><span style='font-weight:
bold'>On Behalf Of </span></b>Crispin Pemberton-Pigott<br>
<b><span style='font-weight:bold'>Sent:</span></b> Friday, November 18, 2011
1:55 PM<br>
<b><span style='font-weight:bold'>To:</span></b> 'Discussion of biomass cooking
stoves'<br>
<b><span style='font-weight:bold'>Cc:</span></b> Cecil Cook<br>
<b><span style='font-weight:bold'>Subject:</span></b> Re: [Stoves] Stove costs</span></font><o:p></o:p></p>
</div>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span lang=EN-CA
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>Dear Jan<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span lang=EN-CA
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span lang=EN-CA
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>I am picking up on
the past comment you made: “</span></font><font size=2 face=Arial><span
style='font-size:10.0pt;font-family:Arial'>For people living on $2 a day or
less, what for example would be considered a low cost stove?
Middling? High?”<font color="#1f497d"><span style='color:
#1F497D'><o:p></o:p></span></font></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>I am copying this to
Cecil Cook who is a social anthropologist specializing in stoves and their use.
You can contact him directly if he does not respond to this group (to which he
is not subscribed).<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>The $2 per day
person is usually not someone living on a total income of $2 per day as a
salary from which they must pay for everything. Yes there are such people,
however that is not really representative of total income or one could say,
value of all income including in-kind receipts. For example fuel
collected free from the environment without expense has a value and from a marketing
point of view, an opportunity cost.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>With that in mind,
one can more easily understand how people with “$2 per day” income
have cell phones and TV’s. There are a number of ways you could slice it:
disposable income, extended family total income including environmental
contributions and so on.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>Cecil has found that
the maximum amount a stove can cost, i.e. to be bought at all by anyone in the
target group, is dependent on cultural considerations. A way to think about it
is like this: how much money will accumulate in the pocket of a person
‘saving for a stove’ (or other major purchase) before it
‘grows holes’ and leaks out? I will give his example of <st1:City
w:st="on"><st1:place w:st="on">Lusaka</st1:place></st1:City> where the amount
is 10 day’s income. No one in the main target population saves more than
10 day’s income before something else starts eating it. It may be a
relative’s school fees, needed clothing and so on. Anything. That is the
upper limit of a practical stove’s cost.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>The upper limit for
a voluntary purchase near the ‘usual cost’ is also important. Asking
people not how much they are willing to pay for ‘anything’ max, but
how much they are willing to pay for a stove will generate a different answer.
If it saves fuel and cooks as well and has less smoke and (especially) lights
quickly and cleanly, people will usually say they will pay more than the
standard product. In the case of <st1:City w:st="on"><st1:place w:st="on">Lusaka</st1:place></st1:City>,
the standard stove goes for about $1.50. An improved stove that will save fuel
can sell for $2.50 to $3.00. Stoves that cost more than that will sell poorly
because it is above the tolerance range for ‘stoves’ even though it
is well under the maximum they could save.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>If a stove has
wonderful features so attractive that people will pay ‘anything to get
one’, it will bump into the upper limit of what most people can save before
it starts leaking out of the pocket.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>For many years
stoves costing $10 to $15 have failed to thrive in <st1:City w:st="on"><st1:place
w:st="on">Lusaka</st1:place></st1:City>. That is below the 10 limit but far
above the $2.50 limit. In a different culture, with a different fuel price
(fuel in <st1:City w:st="on"><st1:place w:st="on">Lusaka</st1:place></st1:City>
is pretty cheap) with a different pay method/cycle there will be different
numbers involved but the same principles.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>You may find his
discoveries helpful when analyzing your cost-benefit scenarios.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>Regards<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 color="#1f497d" face=Calibri><span
style='font-size:11.0pt;font-family:Calibri;color:#1F497D'>Crispin<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
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