Outlook for modern cooking energy access in Central America

The Central American nations of Guatemala, Honduras and Nicaragua are among the poorest in the Americas. While the fraction of population dependent on solid fuels has declined in these nations over the last 25 years, the number of people using them has risen. Here, we first assess current patterns of cooking energy use in these nations. We then apply a discrete model of household cooking choices and demand to simulate future pathways of clean cooking uptake and the outlook for achieving target 7.1 of the Sustainable Development Goals (SDG), which aims to ensure universal access to affordable, reliable and modern energy services by 2030. We find that by 2030, ensuing income growth is likely to enable 90% of urban populations in these nations to switch to using modern cooking energy services. However, without supporting policies, between 40% to 50% of rural Guatemalans and Hondurans, while over two-thirds of rural Nicaraguans, are likely to find clean fuels or stoves unaffordable in 2030. A targeted subsidy on modern fuels, like liquid petroleum gas (LPG), is the most effective policy mechanism we studied that could provide such support. A 50% subsidy policy on LPG targeted to the rural and urban poor population could, by 2030, make cooking with LPG affordable to an additional 7.3 million people in these countries. We estimate that such a policy would cost about $250 million per year and would have negligible greenhouse gas emissions impacts. Such a policy could also have significant health benefits, preventing about 8,890 premature deaths annually from reduced exposure to cooking-related household pollution in 2030.