Publication:
The Role of Market Frictions in Demand for Prepaid Electricity

Simple item page
dc.contributor.authorLang, Megan
dc.date.accessioned2025-04-09T18:34:46Z
dc.date.available2025-04-09T18:34:46Z
dc.date.issued2025-04-09
dc.description.abstractPrepaid electricity contracts lower enforcement costs but may burden consumers, particularly when market frictions are present. This paper presents the results of a randomized control trial where 2,000 randomly selected, rural Rwandese consumers were offered a line of credit for electricity payments. The line of credit lowered liquidity constraints and transaction costs. Twenty percent of consumers borrowed and demand for the credit was inelastic; however, the line of credit did not change average demand for electricity. Detailed administrative data reveal that consumers primarily used the line of credit to lower transaction costs, suggesting that rural consumers highly value convenience. The results highlight potential Pareto improvements from more flexible prepaid contracts.en
dc.identifierhttp://documents.worldbank.org/curated/en/099534204092526611
dc.identifier.doi10.1596/1813-9450-11097
dc.identifier.urihttps://hdl.handle.net/10986/43043
dc.languageEnglish
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesPolicy Research Working Paper; 11097
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectPREPAID ELECTRICITY
dc.subjectLIQUIDITY RESTRAINTS
dc.subjectTRANSACTION COSTS
dc.subjectSOLAR
dc.titleThe Role of Market Frictions in Demand for Prepaid Electricityen
dspace.entity.typePublication
okr.associatedcontenthttps://reproducibility.worldbank.org/index.php/catalog/261 Link to reproducibility package
okr.date.disclosure2025-04-09
okr.date.doiregistration2025-04-14T11:59:54.806959Z
okr.date.lastmodified2025-04-09T17:04:55Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099534204092526611
okr.guid099534204092526611
okr.identifier.docmidIDU-f4f24bc7-f008-4ff8-baa7-fb92cd952d66
okr.identifier.doi10.1596/1813-9450-11097
okr.identifier.externaldocumentum40005978
okr.identifier.internaldocumentum40005978
okr.identifier.reportWPS11097
okr.import.id7060
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttps://documents.worldbank.org/curated/en/099534204092526611/pdf/IDU-f4f24bc7-f008-4ff8-baa7-fb92cd952d66.pdfen
okr.region.administrativeAfrica Eastern and Southern (AFE)
okr.region.countryRwanda
okr.topicMacroeconomics and Economic Growth::Economic Modeling and Statistics
okr.topicEnergy::Solar Energy
okr.topicEnergy::Energy Policies & Economics
okr.topicEnergy::Energy Consumption
okr.unitDEC-Sustainability & Infrastruct (DECSI)
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
Files
Original bundle
Now showing 1 - 2 of 2
Thumbnail Image
Name:
IDU-f4f24bc7-f008-4ff8-baa7-fb92cd952d66.pdf
Size:
1.43 MB
Format:
Adobe Portable Document Format
Download
No Thumbnail Available
Name:
IDU-f4f24bc7-f008-4ff8-baa7-fb92cd952d66.txt
Size:
72.14 KB
Format:
Plain Text
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Plain Text
Description:
Download
Collections
Policy Research Working Papers