As part of a natural resource accounting project being undertaken in Namibia, energy accounts have been compiled and are used to analyse energy use by different economic sectors. Households account for most energy use, especially of traditional fuels, and many households continue to rely on rewood even when they have access to electricity.
A new paraffin tax was introduced in 1999, because it was believed that the price differential between diesel (which was already taxed) and paraffin encouraged substitution, but there is little indication that substitution was actually taking place. The policy goal of increasing mines’ use of electricity at the expense of fossil fuels appears to have been met during the period studied, but this is entirely due to the problems of one mining company which is expected to resume operations shortly. The results also suggest that there is room for improved efficiency in energy use for water supply, and that instituting measures against theft and non-payment of electricity might save substantial amounts of electricity.
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