Publication:
Quantifying Carbon and Distributional Benefits of Solar Home System Programs in Bangladesh

Loading...
Thumbnail Image
Files in English
English PDF (963.48 KB)
355 downloads
English Text (62.97 KB)
107 downloads
Date
2011-01-01
ISSN
Published
2011-01-01
Author(s)
Wang, Limin
Bandyopadhyay, Sushenjit
Editor(s)
Abstract
Scaling-up adoption of renewable energy technology, such as solar home systems, to expand electricity access in developing countries can accelerate the transition to low-carbon economic development. Using a purposely collected national household survey, this study quantifies the carbon and distributional benefits of solar home system programs in Bangladesh. Three key findings are generated from the study. First, dissemination of solar home systems brings about significant carbon benefits: the total carbon emissions avoided from replacing kerosene use for lighting by solar home systems in non-electrified rural households was equivalent to about 4 percent of total annual carbon emissions in Bangladesh in 2007. This figure increases to about 15 percent if the grid-electricity generation is used as the energy baseline to estimate the carbon avoided from the installation of solar home systems. Second, solar home system subsidies in rural Bangladesh are progressive when the program is geographically targeted. Third, there exists a market potential for solar home systems in many rural areas if micro-credit schemes are made available and the propensity to install solar home systems is very responsive to income, with a 1-percent increase in per capita income increasing the probability of installing solar home systems by 12 percent, controlling for other factors.
Link to Data Set
Citation
Wang, Limin; Bandyopadhyay, Sushenjit; Cosgrove-Davies, Mac; Samad, Hussain. 2011. Quantifying Carbon and Distributional Benefits of Solar Home System Programs in Bangladesh. Policy Research working paper ; no. WPS 5545. © World Bank. http://hdl.handle.net/10986/3316 License: CC BY 3.0 IGO.
Associated URLs
Associated content
Report Series
Report Series
Other publications in this report series
  • Publication
    Geopolitics and the World Trading System
    (Washington, DC: World Bank, 2024-12-23) Mattoo, Aaditya; Ruta, Michele; Staiger, Robert W.
    Until the beginning of this century, the GATT/WTO system worked. Economic research provided a compelling explanation. It showed that if governments maximize the well-being of their own countries broadly defined, GATT/WTO principles would facilitate mutually beneficial cooperation over their trade policy choices. Now heightened geopolitical rivalry seems to have undermined the WTO. A simple transposition of the previous rationalization suggests that geopolitics and trade cooperation are not compatible. The paper shows that this is only true if rivalry eclipses any consideration of own-country well-being. In all other circumstances, there are gains from trade cooperation even with geopolitics. Furthermore, the WTO’s relevance is in question only if it adheres too rigidly to its existing rules and norms. Through measured adaptation to the geopolitical imperative, the WTO can continue to thrive as a forum for multilateral trade cooperation in the age of geopolitics.
  • Publication
    The Macroeconomic Implications of Climate Change Impacts and Adaptation Options
    (Washington, DC: World Bank, 2025-05-29) Abalo, Kodzovi; Boehlert, Brent; Bui, Thanh; Burns, Andrew; Castillo, Diego; Chewpreecha, Unnada; Haider, Alexander; Hallegatte, Stephane; Jooste, Charl; McIsaac, Florent; Ruberl, Heather; Smet, Kim; Strzepek, Ken
    Estimating the macroeconomic implications of climate change impacts and adaptation options is a topic of intense research. This paper presents a framework in the World Bank's macrostructural model to assess climate-related damages. This approach has been used in many Country Climate and Development Reports, a World Bank diagnostic that identifies priorities to ensure continued development in spite of climate change and climate policy objectives. The methodology captures a set of impact channels through which climate change affects the economy by (1) connecting a set of biophysical models to the macroeconomic model and (2) exploring a set of development and climate scenarios. The paper summarizes the results for five countries, highlighting the sources and magnitudes of their vulnerability --- with estimated gross domestic product losses in 2050 exceeding 10 percent of gross domestic product in some countries and scenarios, although only a small set of impact channels is included. The paper also presents estimates of the macroeconomic gains from sector-level adaptation interventions, considering their upfront costs and avoided climate impacts and finding significant net gross domestic product gains from adaptation opportunities identified in the Country Climate and Development Reports. Finally, the paper discusses the limits of current modeling approaches, and their complementarity with empirical approaches based on historical data series. The integrated modeling approach proposed in this paper can inform policymakers as they make proactive decisions on climate change adaptation and resilience.
  • Publication
    Global Poverty Revisited Using 2021 PPPs and New Data on Consumption
    (Washington, DC: World Bank, 2025-06-05) Foster, Elizabeth; Jolliffe, Dean Mitchell; Ibarra, Gabriel Lara; Lakner, Christoph; Tettah-Baah, Samuel
    Recent improvements in survey methodologies have increased measured consumption in many low- and lower-middle-income countries that now collect a more comprehensive measure of household consumption. Faced with such methodological changes, countries have frequently revised upward their national poverty lines to make them appropriate for the new measures of consumption. This in turn affects the World Bank’s global poverty lines when they are periodically revised. The international poverty line, which is based on the typical poverty line in low-income countries, increases by around 40 percent to $3.00 when the more recent national poverty lines as well as the 2021 purchasing power parities are incorporated. The net impact of the changes in international prices, the poverty line, and new survey data (including new data for India) is an increase in global extreme poverty by some 125 million people in 2022, and a significant shift of poverty away from South Asia and toward Sub-Saharan Africa. The changes at higher poverty lines, which are more relevant to middle-income countries, are mixed.
  • Publication
    Global Socio-economic Resilience to Natural Disasters
    (Washington, DC: World Bank, 2025-05-22) Middelanis, Robin; Jafino, Bramka Arga; Hill, Ruth; Nguyen, Minh Cong; Hallegatte, Stephane
    Most disaster risk assessments use damages to physical assets as their central metric, often neglecting distributional impacts and the coping and recovery capacity of affected people. To address this shortcoming, the concepts of well-being losses and socio-economic resilience—the ability to experience asset losses without a decline in well-being—have been proposed. This paper uses microsimulations to produce a global estimate of well-being losses from, and socio-economic resilience to, natural disasters, covering 132 countries. On average, each $1 in disaster-related asset losses results in well-being losses equivalent to a $2 uniform national drop in consumption, with significant variation within and across countries. The poorest income quintile within each country incurs only 9% of national asset losses but accounts for 33% of well-being losses. Compared to high-income countries, low-income countries experience 67% greater well-being losses per dollar of asset losses and require 56% more time to recover. Socio-economic resilience is uncorrelated with exposure or vulnerability to natural hazards. However, a 10 percent increase in GDP per capita is associated with a 0.9 percentage point gain in resilience, but this benefit arises indirectly—such as through higher rate of formal employment, better financial inclusion, and broader social protection coverage—rather than from higher income itself. This paper assess ten policy options and finds that socio-economic and financial interventions (such as insurance and social protection) can effectively complement asset-focused measures (e.g., construction standards) and that interventions targeting low-income populations usually have higher returns in terms of avoided well-being losses per dollar invested.
  • Publication
    From Patriarchy to Policy
    (Washington, DC: World Bank, 2025-05-29) Bussolo, Maurizio; Rexer, Jonah M.; Hu, Lynn
    Legal institutions play an important role in shaping gender equality in economic domains, from inheritance to labor markets. But where do gender equal laws come from? Using cross-country data on social norms and legal equality, this paper investigates the socio-cultural roots of gender inequity in the legal system and its implications for female labor force participation. To identify the impact of social norms, the analysis uses an empirical strategy that exploits pre-modern differences in ancestral patriarchal culture as an instrument for present-day gender norms. The findings show that ancestral patriarchal culture is a strong predictor of contemporary norms, and conservative social norms are associated with more gender inequality in the de jure legal framework, the de facto implementation of laws, and the labor market. The paper presents evidence for a political selection mechanism linking norms to laws: countries with more conservative norms elect political leaders who are more hostile to gender equality, who then pass less progressive legislation. The results highlight the cultural roots and political drivers of legalized gender inequality.
Journal
Journal Volume
Journal Issue

Related items

Showing items related by metadata.

  • Publication
    Promoting Energy Access Projects under the Clean Development Mechanism : Standardized Baselines and Suppressed Demand
    (World Bank, Washington, DC, 2011-01) Gadde, Harikumar; Platonova-Oquab, Alexandrina; Affouda, Leon Biaou; Godin, Julie; Oppermann, Klaus
    New concepts under the Clean Development Mechanism (CDM), namely standardized baselines and suppressed demand, should facilitate the implementation of CDM energy access projects, particularly in Least Developed Countries (LDCs), by reducing transaction costs and reflecting the real emission reductions achieved. Governments and authorities in LDCs can play a prominent role in making these new CDM opportunities available. The improvement of the regulatory framework can facilitate the development of innovative carbon-based financing schemes required for successful scaling-up of CDM energy access projects in LDCs. The main purpose of this paper is to outline how the new CDM concepts of standardized baselines and suppressed demand may be used to promote energy access projects under the CDM, in the context of new and expanded role of host country Designated National Authorities (DNAs). In the process, the paper also identifies challenges in the use of these concepts and opportunities for further simplification. By way of illustration, one specific energy access technology, solar home systems, is analyzed in detail. The paper is organized as follows: chapter one is introduction; chapter two provides an overview of the current status of CDM projects in LDCs; chapter three introduces energy access projects in LDCs; chapter four outlines new approaches under the CDM for energy access projects; chapter five goes into the challenges for the application of standardized baselines in LDCs; and chapter six gives recommendations on implementing the new CDM concepts.
  • Publication
    Scaling Up Access to Electricity : The Case of Bangladesh
    (World Bank, Washington, DC, 2014-06-13) Sadeque, Zubair; Rysankova, Dana; Elahi, Raihan; Soni, Ruchi
    This knowledge note is the second of three case studies that concerns scaling up access to electricity in Africa, Bangladesh, and Rwanda. Since its inception in 2003, Bangladesh's solar home system program has installed about three million electrification systems in rural households, two-thirds of them in the last three years. The program is the most dynamic off-grid electrification program in the world, benefitting more than 15 million people and contributing about 130 MW in renewable energy generation capacity. The case study for Bangladesh is interesting, because off-grid electrification is crucial to reaching universal access. Achieving universal access to modern energy services is one of the three complementary objectives of the Sustainable Energy for All (SE4ALL) initiative. Bangladesh's rural electrification program was initiated in 1977 with the creation of the Rural Electrification Board (REB). Yet, it was estimated that at the prevailing pace of grid electrification, Bangladesh was going to take 50 years to reach universal access. By 2002, it had become apparent that an off-grid approach was needed to complement efforts to extend the grid. When the World Bank's first RERED project was being designed in 2002, a two-pronged approach was adopted to promote the use of solar home systems in rural areas, thereby leveraging the country's renewable energy potential, while continuing to help the REB and rural cooperatives improve their operational and financial performance. The program s final design is a good example of how international experience and local know-how can come together to yield an innovative design that suits the country's circumstances. The project's design was flexible (with a range of subsidies and system sizes, for example), allowing for quick adaptation to evolving technology and market conditions, and to consumer feedback.
  • Publication
    Lessons from Output-Based Aid for Leveraging Finance for Clean Energy
    (World Bank, Washington, DC, 2012-09) Hussain, Mustafa Zakir; Etienne, Catherine
    This paper focused on the delivery mechanisms for bilateral, multi-lateral, host government subsidy, and consumer cross-subsidy funding to enhance private sector investment. However, the specific source of funds is not deemed to be especially relevant for the purposes of this working paper. Focus on some of the useful characteristics of Output-Based Aid (OBA) experience to date that may be relevant. Propose an option for how OBA experience could be used to deliver national and programmatic supports to projects in middle- and low-income countries in coordination with other multi-lateral development bank instruments such as concessional loans and credits. This working paper does not: specifically address strengths and weaknesses of the clean development mechanism and only briefly touches on issues with using carbon finance in the current market. Carry out an assessment of experience with feed-in tariffs or advanced market commitments, or indeed other results orientated schemes.
  • Publication
    The Economics of Renewable Energy Expansion in Rural Sub-Saharan Africa
    (World Bank, Washington, DC, 2010-01) Deichmann, Uwe; Meisner, Craig; Murray, Siobhan; Wheeler, David
    Accelerating development in Sub-Saharan Africa will require massive expansion of access to electricity -- currently reaching only about one-third of households. This paper explores how essential economic development might be reconciled with the need to keep carbon emissions in check. The authors develop a geographically explicit framework and use spatial modeling and cost estimates from recent engineering studies to determine where stand-alone renewable energy generation is a cost effective alternative to centralized grid supply. The results suggest that decentralized renewable energy will likely play an important role in expanding rural energy access. But it will be the lowest cost option for a minority of households in Africa, even when likely cost reductions over the next 20 years are considered. Decentralized renewables are competitive mostly in remote and rural areas, while grid connected supply dominates denser areas where the majority of households reside. These findings underscore the need to de-carbonize the fuel mix for centralized power generation as it expands in Africa.
  • Publication
    Surge in Solar-Powered Homes : Experience in Off-Grid Rural Bangladesh
    (World Bank, Washington, DC, 2014-10-08) Sadeque, Zubair K.M.; Khandker, Shahidur R.; Asaduzzaman, Mohammed; Samad, Hussain A.; Yunus, Mohammad; Haque, A.K. Enamul
    Bangladesh has made remarkable progress in raising living standards and reducing poverty, particularly in previously lagging regions. Rapid solar home system (SHS) expansion in Bangladesh to some 3 million rural households by early 2014 has drawn the attention of donors and governments of other countries. The book s broad aim is twofold: (a) to assess the welfare impact of SHS on households, and (b) to evaluate the present institutional structure and financing mechanisms in place, noting that households want cheaper systems and good quality service while suppliers require a reasonable market-based profit to stay in business. The study entailed an intensive empirical investigation based on both primary and secondary data. The primary data consisted mainly of a large-scale, nationally representative household survey with appropriate geographic spread. Conducted in 2012 by the Bangladesh Institute of Development Studies (BIDS) and assisted by the World Bank, the household survey was designed to examine SHS benefits and costs. The book addresses a number of research issues, which are grouped according to general and gendered household impact, program delivery and monitoring of technical standards, market size and demand, and carbon emissions reduction. The book also analyzes household uses of solar-electric energy services. Typically, SHS models are used for lighting, powering fans and television sets, and charging mobile devices and other electrical equipment. Finally, the book evaluates the gender-disaggregated benefits and women's empowerment from SHS adoption. The gender analysis included two major research questions: (a) can the socioeconomic status of rural women be enhanced by increasing the opportunity to participate in alternative energy-service delivery, and (b) if SHS brings positive impacts in terms of social indicators, what additional efforts can supplement them to bring about a radical shift in gender roles and responsibilities. The book's findings show that better household lighting improves household welfare both directly and indirectly. The book has eight chapters. Chapter one is introduction. Chapter two describes the current status of Bangladesh's SHS expansion program, including salient features of system operation, as well as program delivery and financing. Chapter three reviews the role of electrification in rural development and international experience in using SHS as a complementary solution in remote off-grid areas. Based on the survey data findings, chapter four identifies the major drivers of SHS adoption and system capacity selection at the household and village level, while chapter five discusses and estimates the welfare benefits. Chapter six focuses on SHS market analysis and role of the subsidy, including consumers' willingness to pay and the potential impact of subsidy phase-out. Chapter seven turns to the quality of partner organization (PO) service and other supply-side issues, along with market constraints to meet future demand. Finally, chapter eight offers policy perspectives and a way forward.

Users also downloaded

Showing related downloaded files

  • Publication
    World Development Report 2006
    (Washington, DC, 2005) World Bank
    This year’s Word Development Report (WDR), the twenty-eighth, looks at the role of equity in the development process. It defines equity in terms of two basic principles. The first is equal opportunities: that a person’s chances in life should be determined by his or her talents and efforts, rather than by pre-determined circumstances such as race, gender, social or family background. The second principle is the avoidance of extreme deprivation in outcomes, particularly in health, education and consumption levels. This principle thus includes the objective of poverty reduction. The report’s main message is that, in the long run, the pursuit of equity and the pursuit of economic prosperity are complementary. In addition to detailed chapters exploring these and related issues, the Report contains selected data from the World Development Indicators 2005‹an appendix of economic and social data for over 200 countries. This Report offers practical insights for policymakers, executives, scholars, and all those with an interest in economic development.
  • Publication
    Business Ready 2024
    (Washington, DC: World Bank, 2024-10-03) World Bank
    Business Ready (B-READY) is a new World Bank Group corporate flagship report that evaluates the business and investment climate worldwide. It replaces and improves upon the Doing Business project. B-READY provides a comprehensive data set and description of the factors that strengthen the private sector, not only by advancing the interests of individual firms but also by elevating the interests of workers, consumers, potential new enterprises, and the natural environment. This 2024 report introduces a new analytical framework that benchmarks economies based on three pillars: Regulatory Framework, Public Services, and Operational Efficiency. The analysis centers on 10 topics essential for private sector development that correspond to various stages of the life cycle of a firm. The report also offers insights into three cross-cutting themes that are relevant for modern economies: digital adoption, environmental sustainability, and gender. B-READY draws on a robust data collection process that includes specially tailored expert questionnaires and firm-level surveys. The 2024 report, which covers 50 economies, serves as the first in a series that will expand in geographical coverage and refine its methodology over time, supporting reform advocacy, policy guidance, and further analysis and research.
  • Publication
    Unlocking Blue Carbon Development
    (Washington, DC: World Bank, 2023-09-11) World Bank
    The purpose of this paper is to provide a practical framework to guide governments in catalyzing and scaling up public and private investment in Blue Carbon as part of their blue economy development. It does this by describing in detail a Blue Carbon Readiness Framework, a step-by-step, well-illustrated guide with simple checklists. Client countries can use the illustrations and checklists to determine their readiness to catalyze and scale up investment in blue carbon credit finance. The Blue Carbon Readiness Framework consists of three pillars: 1. Data and Analytics; 2. Policy and Institutions; 3. Finance.
  • Publication
    Classroom Assessment to Support Foundational Literacy
    (Washington, DC: World Bank, 2025-03-21) Luna-Bazaldua, Diego; Levin, Victoria; Liberman, Julia; Gala, Priyal Mukesh
    This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.
  • Publication
    Digital Progress and Trends Report 2023
    (Washington, DC: World Bank, 2024-03-05) World Bank
    Digitalization is the transformational opportunity of our time. The digital sector has become a powerhouse of innovation, economic growth, and job creation. Value added in the IT services sector grew at 8 percent annually during 2000–22, nearly twice as fast as the global economy. Employment growth in IT services reached 7 percent annually, six times higher than total employment growth. The diffusion and adoption of digital technologies are just as critical as their invention. Digital uptake has accelerated since the COVID-19 pandemic, with 1.5 billion new internet users added from 2018 to 2022. The share of firms investing in digital solutions around the world has more than doubled from 2020 to 2022. Low-income countries, vulnerable populations, and small firms, however, have been falling behind, while transformative digital innovations such as artificial intelligence (AI) have been accelerating in higher-income countries. Although more than 90 percent of the population in high-income countries was online in 2022, only one in four people in low-income countries used the internet, and the speed of their connection was typically only a small fraction of that in wealthier countries. As businesses in technologically advanced countries integrate generative AI into their products and services, less than half of the businesses in many low- and middle-income countries have an internet connection. The growing digital divide is exacerbating the poverty and productivity gaps between richer and poorer economies. The Digital Progress and Trends Report series will track global digitalization progress and highlight policy trends, debates, and implications for low- and middle-income countries. The series adds to the global efforts to study the progress and trends of digitalization in two main ways: · By compiling, curating, and analyzing data from diverse sources to present a comprehensive picture of digitalization in low- and middle-income countries, including in-depth analyses on understudied topics. · By developing insights on policy opportunities, challenges, and debates and reflecting the perspectives of various stakeholders and the World Bank’s operational experiences. This report, the first in the series, aims to inform evidence-based policy making and motivate action among internal and external audiences and stakeholders. The report will bring global attention to high-performing countries that have valuable experience to share as well as to areas where efforts will need to be redoubled.