Stove Exchange Program in Temuco

The Nucleus on Environmental and Resource Economics (NENRE) at Concepción has developed a strong line of research on the problem of using economic incentives for controlling air pollution in the urban areas of central-southern Chile. In many cities in this region there are severe episodes of air pollution, especially in winter, with very dangerous levels of particulate matter generated mainly by the burning of firewood in households. The research group in Concepción has focused its work during the last years on the design of subsidy programs oriented to induce cleaner technology adoption in households. Better technology implies less wood consumption and less particulate matter per unit of energy generated, improving energy efficiency and reducing air pollution. One of the most important project was a pilot program for stove replacement in the city of Temuco that described the expectations of households and the willingness to pay for new technology. It also showed the main difficulties associated with a subsidy program for technology adoption in southern Chile. This year the group organized a workshop in the University of Concepción with policy makers to discuss the practical and legal difficulties that appears by the extension of the local experiences of stove exchange subsidies to nationwide programs. This workshop was jointly organized with the Chilean Ministry of the Environment and included academic researchers with experience in the topic and representatives of air pollution in regional and central offices of the Ministry. Based on the information and science developed at the Concepción EfD Center, the Ministry of the Environment is now preparing a new nationwide stove replacement program that is expected to contribute in an important way to the control of air pollution in the main cities of southern Chile.