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A First Step Up the Energy Ladder? Low Cost Solar Kits and Household's Welfare in Rural Rwanda

Author

Listed:
  • Grimm, Michael
  • Munyehirwe, Anicet
  • Peters, Jörg
  • Sievert, Maximiliane
Abstract
More than 1.3 billion people in developing countries are lacking access to electricity. Based on the assumption that electricity is a prerequisite for human development, the United Nations initiative Sustainable Energy for All (SE4All) has proclaimed the goal of providing modern energy to all by 2030. In recent years, Pico-Photovoltaic kits have become a lower-cost alternative to investment-intensive grid electrification. Using a randomized controlled trial we examine uptake and impacts of a simple Pico-Photovoltaic kit that barely exceeds the benchmark of what the UN considers as modern energy. We find significant effects on households' budget, productivity and convenience. Despite these effects, the data shows that adoption will be impeded by affordability, suggesting that policy would have to consider more direct promotion strategies such as subsidies or financing schemes to reach the UN goal.

Suggested Citation

  • Grimm, Michael & Munyehirwe, Anicet & Peters, Jörg & Sievert, Maximiliane, 2015. "A First Step Up the Energy Ladder? Low Cost Solar Kits and Household's Welfare in Rural Rwanda," Ruhr Economic Papers 554, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:554
    DOI: 10.4419/86788635
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    as
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    More about this item

    Keywords

    energy access; household productivity; household technology adoption; Sub-Saharan Africa; Randomized Controlled Trial;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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