Publication:
Decentralized Markets for Electricity in Low-Income Countries

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dc.contributor.authorLang, Megan
dc.date.accessioned2025-01-30T21:55:58Z
dc.date.available2025-01-30T21:55:58Z
dc.date.issued2025-01-30
dc.description.abstractGovernments in low-income countries are increasingly integrating off-grid electricity provision into national electrification strategies, creating novel, decentralized markets for electricity. This paper studies a highly decentralized product that plays an important role in energy access: pay as you go (PAYGo) solar home systems. Unlike grid electrification, PAYGo solar features low upfront costs but relatively high usage costs. To what extent do high intensive margin prices limit the adoption of solar home systems In 2019, the Togolese government implemented a large subsidy that reduced usage costs by 17.8 to 41.7 percent, while upfront costs remained constant. This paper estimates that the subsidy dramatically increased adoption, with the largest effects occurring for the smallest systems (240 percent increase). The paper goes on to develop a theoretical framework that shows that the effects of such subsidies are uncertain due to the unique cost structure of decentralized solar electricity. The results highlight the importance of use prices in the electrification decisions of low-income households.en
dc.identifierhttp://documents.worldbank.org/curated/en/099942101302520488/IDU19654047d15440149111a0c811312437cb2de
dc.identifier.doi10.1596/1813-9450-11053
dc.identifier.doihttps://doi.org/10.1596/1813-9450-11053
dc.identifier.urihttps://hdl.handle.net/10986/42749
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesPolicy Research Working Paper; 11053
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectELECTRIFICATION
dc.subjectDECENTRALIZED ELECTRICITY PROVISION
dc.subjectRENEWABLE ENERGY
dc.titleDecentralized Markets for Electricity in Low-Income Countriesen
dc.typeWorking Paper
dspace.entity.typePublication
okr.associatedcontenthttps://reproducibility.worldbank.org/index.php/catalog/235 Link to reproducibility package
okr.date.disclosure2025-01-30
okr.date.doiregistration2025-04-14T11:59:57.766187Z
okr.date.lastmodified2025-01-30T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099942101302520488/IDU19654047d15440149111a0c811312437cb2de
okr.guid099942101302520488
okr.identifier.docmidIDU-9654047d-5440-4911-a0c8-1312437cb2de
okr.identifier.doi10.1596/1813-9450-11053
okr.identifier.externaldocumentum34451568
okr.identifier.internaldocumentum34451568
okr.identifier.reportWPS11053
okr.import.id6476
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099942101302520488/pdf/IDU19654047d15440149111a0c811312437cb2de.pdfen
okr.region.geographicalWorld
okr.topicMacroeconomics and Economic Growth::Economic Development
okr.topicEnergy::Energy Resources Development
okr.topicEnergy::Energy Resources Development
okr.topicEnergy::Electric Power
okr.unitDEC-Sustainability & Infrastruct (DECSI)
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