end of propane subsidies and the rise of deforestation?

[George Holmes]

It seems that propane subsidies are going to end soon, and the reasons the government are doing it are largely "urban" reasons, such as the high numbers of cars running on LPG. There are compelling "rural" reasons for continuing the subsidy.

Since the subsidy was introduced, there has been a great decline in the use of wood or charcoal as a fuel, which has an impact on deforestation. The evidence suggests that this subsidy has had a far greater effect on how much forest campesinos have been cutting down or damaging than the various forestry laws (excluding the complex topic of the probably greater impact of rich people on forests of the DR). In fact, although data is unreliable and somewhat scarce, the most recent satellite analyses indicates that forest cover has increased in the last decade in the DR.
Put simply, campesinos generally prefer to use gas as a cooking fuel because:
- it is healtheir (they recognise the health risks of smoke)
- it is quicker (for some kinds of cooking, although wood can be better for others because it gives a hotter flame)
- getting wood is a hassle for most
They do occasionally use some wood but from my experience in the Cordillera Central it is a 'sustainable' use because demand is low so there is enough dead branches on the forest floor and dead coffee stems etc so that no live wood needs to be cut. Of course, this might be different in other parts of the DR, particularly in the drier forest of the southwest, where the economy and ecology are rather different. Wood and charcoal are only used in some cases, such as when a particular family's gas tank runs out and they don't have the cash just then to buy a refill, so they will burn wood until they can afford it.

It seems that urban demand for charcoal is low for similar reasons, so very little forest is damaged for production to meet this.

With the end of the subsidy, propane will become less popular in rural and urban areas, cutting for charcoal and fuel wood will rise, as will deforestation and the ecological effects of this. I find it very interesting that the discussion is purely about the economic cost of people filling up their yipetas and not about the effect on the environment.

[chibani]

Originally Posted by George Holmes

It seems that propane subsidies are going to end soon, and the reasons the government are doing it are largely "urban" reasons, such as the high numbers of cars running on LPG. There are compelling "rural" reasons for continuing the subsidy.

Since the subsidy was introduced, there has been a great decline in the use of wood or charcoal as a fuel, which has an impact on deforestation. The evidence suggests that this subsidy has had a far greater effect on how much forest campesinos have been cutting down or damaging than the various forestry laws (excluding the complex topic of the probably greater impact of rich people on forests of the DR). In fact, although data is unreliable and somewhat scarce, the most recent satellite analyses indicates that forest cover has increased in the last decade in the DR.

There is no reason to subsidy propane for every body. Some billionaires properties use propane an can afford it. It would be better to hemp only those who need it really.

[Hipocrito Mejia]

This government is proposing to do something which in theory was supposed to be done a long time ago, but was never enforced/implemented. They are intent on limiting the subsidy to LPG that is used by homemakers and small public transportation vehicles (conchos).

It will be interesting to see how they intend to control subsidized LPG sales, as again, this was supposed to be done long ago, yet everyone buys LPG at subsidized prices for whatever use they please.

[PICHARDO]

The ongoing plan is to have strict enforcement of the biz that do the actual sales of the gas, to both residential and commercial users.

It don't matter if the gas is used by a millionaire or a poor ama de casa, both are entitled to the same price since no distinction is made across the income of those to benefit but end market user...

Commercial use and private vehicles adapted to employ the subsidized gas is the problem. The retailers will be targeted for infractions to the agreement under which the gas can be sold at the subsidy price.

Inspectors (undercover) will be using the same venues the local market uses to buy from the retailers, both commercial and private users.
Once a violation is found it will be videotaped as proof for the courts (should the retailer contest the violation's fines) and stiff penalties imposed per occurrence.

Carros publicos with the approved permit to buy subsidy gas will have electronic measures to track usage and the tally of pounds acquired during the span the fuel should have lasted. In other words, a device linked to the speedometer and fuel system/tank will be placed to keep the drivers from buying the gas and reselling the unused to the private market...

A lot of stuff is soon going to change for the better...

[Hipocrito Mejia]

Originally Posted by PICHARDO

Inspectors (undercover) will be using the same venues the local market uses to buy from the retailers, both commercial and private users.
Once a violation is found it will be videotaped as proof for the courts (should the retailer contest the violation's fines) and stiff penalties imposed per occurrence.

Sounds just like the weight and measure inspectors that colmados and gas stations can now bribe for 3 or 4 hundred pesos to make them go away.

Originally Posted by PICHARDO

Carros publicos with the approved permit to buy subsidy gas will have electronic measures to track usage and the tally of pounds acquired during the span the fuel should have lasted. In other words, a device linked to the speedometer and fuel system/tank will be placed to keep the drivers from buying the gas and reselling the unused to the private market...

Good luck! I already see a new black market business "fixing" those devices, just like they "fix" electric meters, meters at LPG stations, gas pumps, etc.

Originally Posted by PICHARDO

A lot of stuff is soon going to change for the better...

C'mon PICHARDO, we grew up in DR... we know that inspectors and these gadgets won't work here!

[cobraboy]

With gasoline at $US5.50-5.85 and rising, and propane (unsibsidized) at under $US2.50, seems that private folks would opt for propane in their vehicles.

[PICHARDO]

Originally Posted by Hipocrito Mejia

Sounds just like the weight and measure inspectors that colmados and gas stations can now bribe for 3 or 4 hundred pesos to make them go away.

Like I said, new system (I can't reveal much more of the inner workings).
The "undercover" part is the big ace here, if you can now understand they can't bribe what they can't identify to their side...

Originally Posted by Hipocrito Mejia

Good luck! I already see a new black market business "fixing" those devices, just like they "fix" electric meters, meters at LPG stations, gas pumps, etc.

The Devices are pretty safe in the way that journaling of the kernel is used in tandem with tamper proof indicators. No Dominican authority is going to be made aware of the safety since a foreign trustee will be in charge of the audits... Can't be more specific than this here...

Originally Posted by Hipocrito Mejia

C'mon PICHARDO, we grew up in DR... we know that inspectors and these gadgets won't work here!

Changes are going to happen! Just as the theft of electrical service will be dealt with even harsher penalties, once the DR is in charge again of the energy sector (there will be a program for low income and retirees to get lower set bills than the others).



Let out here on DR1:

Be ready for taxes on services and sectors of the economy that got away with unpaid tax collected to the gov.

The DR will be one of the first countries to adopt the paperless currency in favor of electronic based currency to the max.

Money laundering in the DR will be 0%...

We'll address the aging with the proper care and facilities they require funded by the state 100%. People will be able to use a part of their income taxes to invest in the Bolsa de Valores Dominicana.

The Hospital/health care system of the DR will be one and the same nationwide... Both private and public will be fused into a one care provider...

Instead of taxing imports, the internal taxes will carry an ad valorem to make the national industry more competitive and easier to reach the international markets via help of the gov.

A campaign, to educate the younger generation to the perils of higher imports consumption to national products ratio. Bring the younger generation into the world market with an extra subject to be imparted via the schools in the DR...

The creation of a micro-loan state funded bank aiming at the lowest sectors of our socio-economic strata.

Some of the stuff you don't know about being discussed today in our gov and many reaching the initial triggers...

[PICHARDO]

Propane gas is going to be allowed to float to market price...
Natural gas on the other hand...

If you're thinking of buying a car to bring to the DR, make sure to check a good Flex fuel vehicle capable of running on E85 and gasoline...

[windeguy]

PICHARDO, these are some very tall orders for the DR. Those of us that have lived here for any time at all realize how difficult it is to make positive changes of any magnitude. Not that I agree that all the changes you mentioned would necessarily be positive. In this case I refer to the combination of private and public hospitals as a high risk endeavor.

[PICHARDO]

Check HOMS in Santiago and get back to me on that...