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In July-August, 2023, CAREC Institute, Public Opinion Research Institute, and Asian Development Bank Institute conducted a sociological survey on household energy use in the Fergana Valley spanning over the Kyrgyz Republic, Tajikistan, and Uzbekistan. The following article uses the data from that survey for investigating what determines the choice of different energy types for heating. The article concludes that high household expenditures for coal and high awareness of the harm fossil fuels can inflict on the environment and family health are insufficient to trigger a large-scale shift towards cleaner energy. To motivate households for such a shift a substantial increase in fossil fuel prices compared to electricity and other clean energy is required. This might call for a sales tax on coal. However, energy expenditure already accounts for up to one-third of household income. Low- and middle-income households would need to be compensated for increased energy spending to avoid social hardship and a backlash against such a tax.

The study aimed to evaluate the economic and financial viability of a coal mine methane (CMM) utilization project in Central Kazakhstan, demonstrating a methodology for similar initiatives. The analysis was based on the 2013 project proposed by the US Environmen-tal Protection Agency (EPA) that intended to capture methane emissions from six coal mines for electricity generation, yet was never implemented. The study’s relevance stems from Kazakhstan's 2030 methane pledge, recent progress in the country's climate change-related policy, mineworker mortality in 2023, and the shift of mines ownership. Building upon the technical specifications of the 2013 US EPA project, this research em-ployed standard financial and economic cost-benefit analysis (CBA). The financial model utilized a traditional discounted free cash flow approach, while the economic model in-corporated additional factors like the value of statistical life (VSL), shadow pricing, as well as benefits associated with mitigating ozone health impacts, crop damage, mine ex-plosion risks, and CO2 emissions. The economic model has indicated a positive net pre-sent value of $243 mln and 42% internal rate of return. The financial analysis also sug-gests potential profitability under fair electricity and carbon pricing market conditions. To assess project robustness under varying economic and financial assumptions, the study included a sensitivity analysis. The research has likewise leveraged prior CMM-related studies in Kazakhstan and provides valuable guidance for analyzing similar projects. In addition, it also highlights the need for certain adjustments in the current legislation to incentivize such projects, as well as to promote environmental sustainability and social development by mitigating methane emissions, which aligns with Kazakhstan's climate goals.