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The Economics of Gas Utilizationin a Gas-Rich, Oil-Poor Country: The Case of Bangladesh

It has become an article of faith that clean-burning, low-polluting natural gas is a premium fuel and that on a net heat basis it is inherently more valuable than its closest competitor, fuel oil. This conclusion has been drawn by comparing pollution characteristics of both fuels. While the conclusion is correct, it is correct only in regions that have free access to both natural gas and oil delivered to the user's premises at similar costs per Btu.

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Energy Specializations: Natural Gas – Markets and Prices; Energy Access – Energy Poverty and Equity

JEL Codes: Q40: Energy: General, Q41: Energy: Demand and Supply; Prices, Q35: Hydrocarbon Resources

Keywords: Natural gas, Fuel oil, Household energy, Developing countries, Bangladesh, Air pollution

DOI: 10.5547/ISSN0195-6574-EJ-Vol4-No1-3

Published in Volume 4, Number 1 of the bi-monthly journal of the IAEE's Energy Economics Education Foundation.


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