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Realization of Maximum Benefits from Liberalization of EGS : Kenyan Case. By Moses Ikiara Kenya Institute for Public Policy Research & Analysis (KIPPRA). Outline. Introduction Demand for EGS in Kenya How is demand met?: Imports vs Domestic Production Kenya’s exports of EGS, Barriers?
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Kenya Institute for Public Policy Research & Analysis (KIPPRA)
Demand for EGS is high judging from:
This status is attributable to:
3. Heavy dependence on wood fuel and ecosystem services in general. Wood fuel supplies 70% of energy, 21% from petroleum and 9% from electricity (hydro largely). High rate of biodiversity loss. Air pollution becoming serious, with transport consuming 56% of fossil fuel in the country.
4. Pressure from stakeholders, donors, civil society and consumers. Green Belt Movement, Residential associations in Nairobi. Tourist hotels increasingly using energy and water saving technologies, eco-friendly detergents and shampoos, improved waste management systems.
5. Multilateral environmental agreements (MEAs) and related mechanisms. Kenya hosts UNEP, has signed many MEAs such as UNFCCC, CITES, Ramsar Convention. Has used CITES to fight ivory trade.
6. Domestic policy and institutional responses: Environmental policy has been improving. Environmental Management & Coordination Act (EMCA, 1999) has given power to the government to apply economic instruments to manage environment and natural resources: customs & excise duty waiver for imported environmental capital goods, tax rebates for environmental protection industries, fees or user charges proportional to environmental damage. Requires envntal audits, EIAs.
7. Trade policy reforms: serious liberalization in early 1990s, including abolition of trade licensing and foreign exchange controls. By 1998, simple average tariff had been reduced to 12.8%. Stronger regional integration has increased Kenya’s exports: COMESA took 15% of Kenya’s exports in 1990-92; 34% by 1996-98.
What do these products suggest?
Little outside eco-tourism exports, and to the region:
Trade agreements & regional blocs create great potential
- S&D treatment including gradual liberal. as understanding improves, greater flexibility in attaching market access conditions, allowing goods defined on the basis of production method for developing and LDCs (e.g. organically produced products), allowing goods harvested from the envnt (such as honey and extremophiles ascommercial value stimulates conservation!).