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The Effect of Information and Subsidy Measures on Adoption of Solar Lanterns: An Application of the BDM Bidding Mechanism in Rural Ethiopia

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dc.contributor.authorMekonnen, Alemu
dc.contributor.authorHassen, Sied
dc.contributor.authorJaime, Marcela
dc.contributor.authorToman, Michael A.
dc.contributor.authorZhang, Xiao-Bing
dc.date.accessioned2021-03-25T14:27:03Z
dc.date.available2021-03-25T14:27:03Z
dc.date.issued2021-03
dc.description.abstractSolar lanterns are a relatively inexpensive renewable-energy option for household lighting in developing countries. However, the transition to these lighting sources is slow. To understand why, this study uses the Becker-Degroot-Marschak bidding mechanism in a randomized field experiment to investigate the effect of information provision and subsidy policy instruments on the uptake of solar lanterns. Subjects’ willingness to pay tends to be low enough that most of them would purchase the solar lantern only if it is subsidized. Households with access to grid electricity have a lower willingness to pay and are less likely to adopt, while those using kerosene as a source of lighting are more likely to adopt. Access to credit also increases willingness to pay. Information treatments have limited impact: provision of different types of information about the private and public benefits of solar lantern use increases adoption only when it is combined with a high level of subsidies. Given the relatively low cost of solar lanterns, the results suggest that achieving universal electricity access under the United Nations’ Sustainable Development Goals by any means will require subsidizing access.en
dc.identifierhttp://documents.worldbank.org/curated/en/886181616531982023/The-Effect-of-Information-and-Subsidy-Measures-on-Adoption-of-Solar-Lanterns-An-Application-of-the-BDM-Bidding-Mechanism-in-Rural-Ethiopia
dc.identifier.doi10.1596/1813-9450-9595
dc.identifier.urihttps://hdl.handle.net/10986/35307
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 9595
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectRENEWABLE ENERGY
dc.subjectSOLAR LAMPS
dc.subjectSUBSIDIES
dc.subjectPOLICY INSTRUMENTS
dc.subjectTECHNOLOGY ADOPTION
dc.subjectBECKER-DEGROOT-MARSCHAK BIDDING
dc.titleThe Effect of Information and Subsidy Measures on Adoption of Solar Lanternsen
dc.title.subtitleAn Application of the BDM Bidding Mechanism in Rural Ethiopiaen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleThe Effect of Information and Subsidy Measures on Adoption of Solar Lanterns: An Application of the BDM Bidding Mechanism in Rural Ethiopia
okr.date.disclosure2021-03-23
okr.date.doiregistration2025-04-10T12:02:13.471594Z
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/886181616531982023/The-Effect-of-Information-and-Subsidy-Measures-on-Adoption-of-Solar-Lanterns-An-Application-of-the-BDM-Bidding-Mechanism-in-Rural-Ethiopia
okr.guid886181616531982023
okr.identifier.doi10.1596/1813-9450-9595
okr.identifier.externaldocumentum090224b08841184b_1_0
okr.identifier.internaldocumentum32938794
okr.identifier.reportWPS9595
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/886181616531982023/pdf/The-Effect-of-Information-and-Subsidy-Measures-on-Adoption-of-Solar-Lanterns-An-Application-of-the-BDM-Bidding-Mechanism-in-Rural-Ethiopia.pdfen
okr.region.administrativeAfrica
okr.region.administrativeAfrica Eastern and Southern (AFE)
okr.region.countryEthiopia
okr.statistics.combined1031
okr.statistics.dr886181616531982023
okr.statistics.drstats715
okr.topicEnergy::Energy Demand
okr.topicEnergy::Energy Policies & Economics
okr.topicEnergy::Energy Technology & Transmission
okr.topicEnergy::Renewable Energy
okr.topicEnergy::Solar Energy
okr.unitDevelopment Research Group, Development Economics
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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