IDEAS home Printed from https://ideas.repec.org/a/eee/ecanpo/v69y2021icp629-639.html
   My bibliography  Save this article

Modeling solar energy system demand using household-level data in Myanmar

Author

Listed:
  • Hyun, Suk
  • Taghizadeh-Hesary, Farhad
  • Shim, Hyoung Suk

Abstract

Over the past few decades, universal electricity access has grown together with an increasing awareness of the need to combat global warming. Nevertheless, electricity access remains a critical driver of economic growth and poverty reduction for developing countries. This study characterizes the demand for solar energy and its impact on electricity consumption in Myanmar. We estimate discrete choice models for solar device ownership (or usage) using the World Bank multi-tier framework (MTF) global survey for Myanmar. We estimate a binary choice model for solar device usage, and find that individuals who are married and living in their own houses in rural areas without access to the national grid are more likely to become solar device owners. Using a multinomial logit model estimation, we find heterogeneous characteristics of the demand for solar device ownership by payment method. Finally, we estimate an electricity consumption function with solar device ownership as an endogenous selection using Heckman’s selection model estimation. The estimation result indicates that there is no substantial rebound effect due to solar device ownership.

Suggested Citation

  • Hyun, Suk & Taghizadeh-Hesary, Farhad & Shim, Hyoung Suk, 2021. "Modeling solar energy system demand using household-level data in Myanmar," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 629-639.
    • Handle: RePEc:eee:ecanpo:v:69:y:2021:i:c:p:629-639
    DOI: 10.1016/j.eap.2021.01.011
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0313592621000114
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eap.2021.01.011?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Nepal, Rabindra & Jamasb, Tooraj, 2015. "Caught between theory and practice: Government, market, and regulatory failure in electricity sector reforms," Economic Analysis and Policy, Elsevier, vol. 46(C), pages 16-24.
    2. Judson Boomhower & Lucas Davis, 2020. "Do Energy Efficiency Investments Deliver at the Right Time?," American Economic Journal: Applied Economics, American Economic Association, vol. 12(1), pages 115-139, January.
    3. Khan, Tahsina & Khanam, Shamsun Nahar & Rahman, Md Habibur & Rahman, Syed Mahbubur, 2019. "Determinants of microfinance facility for installing solar home system (SHS) in rural Bangladesh," Energy Policy, Elsevier, vol. 132(C), pages 299-308.
    4. Rabindra, Nepal & Tooraj, Jamasb, 2013. "Caught Between Theory and Practice: Government, Market, and Regulatory Failure in Electricity Sector Reforms," SIRE Discussion Papers 2013-22, Scottish Institute for Research in Economics (SIRE).
    5. Qureshi, Tahir Masood & Ullah, Kafait & Arentsen, Maarten J., 2017. "Factors responsible for solar PV adoption at household level: A case of Lahore, Pakistan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 78(C), pages 754-763.
    6. Mensah, Justice Tei & Adu, George, 2015. "An empirical analysis of household energy choice in Ghana," Renewable and Sustainable Energy Reviews, Elsevier, vol. 51(C), pages 1402-1411.
    7. Daniel del Barrio Alvarez & Masahiro Sugiyama, 2020. "A SWOT Analysis of Utility-Scale Solar in Myanmar," Energies, MDPI, vol. 13(4), pages 1-17, February.
    8. Meredith Fowlie & Michael Greenstone & Catherine Wolfram, 2018. "Do Energy Efficiency Investments Deliver? Evidence from the Weatherization Assistance Program," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 133(3), pages 1597-1644.
    9. Taghizadeh-Hesary, Farhad & Yoshino, Naoyuki, 2019. "The way to induce private participation in green finance and investment," Finance Research Letters, Elsevier, vol. 31(C), pages 98-103.
    10. Ryan, Alexander Joel & Donou-Adonsou, Ficawoyi & Calkins, Lindsay Noble, 2019. "Subsidizing the sun: The impact of state policies on electricity generated from solar photovoltaic," Economic Analysis and Policy, Elsevier, vol. 63(C), pages 1-10.
    11. Yoshino, Naoyuki & Taghizadeh–Hesary, Farhad & Nakahigashi, Masaki, 2019. "Modelling the social funding and spill-over tax for addressing the green energy financing gap," Economic Modelling, Elsevier, vol. 77(C), pages 34-41.
    12. Kurata, Masamitsu & Matsui, Noriatsu & Ikemoto, Yukio & Tsuboi, Hiromi, 2018. "Do determinants of adopting solar home systems differ between households and micro-enterprises? Evidence from rural Bangladesh," Renewable Energy, Elsevier, vol. 129(PA), pages 309-316.
    13. Sekitou, Mai & Tanaka, Kenta & Managi, Shunsuke, 2018. "Household electricity demand after the introduction of solar photovoltaic systems," Economic Analysis and Policy, Elsevier, vol. 57(C), pages 102-110.
    14. Huang, Wen-Hsiu, 2015. "The determinants of household electricity consumption in Taiwan: Evidence from quantile regression," Energy, Elsevier, vol. 87(C), pages 120-133.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sarangi, Gopal K. & Pradhan, Abhilas Kumar & Taghizadeh-Hesary, Farhad, 2021. "Performance assessment of state-owned electricity distribution utilities in India," Economic Analysis and Policy, Elsevier, vol. 71(C), pages 516-531.
    2. Aarakit, Sylvia Manjeri & Ntayi, Joseph M. & Wasswa, Francis & Buyinza, Faisal & Adaramola, Muyiwa S. & Ssennono, Vincent F., 2022. "The role of financial inclusion in adoption of solar photovoltaic systems: A case of Uganda," Renewable Energy, Elsevier, vol. 198(C), pages 984-998.
    3. A. K. Pandey & B. Kalidasan & R. Reji Kumar & Saidur Rahman & V. V. Tyagi & Krismadinata & Zafar Said & P. Abdul Salam & Dranreb Earl Juanico & Jamal Uddin Ahamed & Kamal Sharma & M. Samykano & S. K. , 2022. "Solar Energy Utilization Techniques, Policies, Potentials, Progresses, Challenges and Recommendations in ASEAN Countries," Sustainability, MDPI, vol. 14(18), pages 1-26, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Massimo Filippini & Lin Zhang, 2019. "Impacts of heat metering and efficiency retrofit policy on residential energy consumption in China," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 21(2), pages 203-216, April.
    2. Hasan, Mudassar & Arif, Muhammad & Naeem, Muhammad Abubakr & Ngo, Quang-Thanh & Taghizadeh–Hesary, Farhad, 2021. "Time-frequency connectedness between Asian electricity sectors," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 208-224.
    3. Rabindra Nepal & Han Phoumin & Abiral Khatri, 2021. "Green Technological Development and Deployment in the Association of Southeast Asian Economies (ASEAN)—At Crossroads or Roundabout?," Sustainability, MDPI, vol. 13(2), pages 1-19, January.
    4. Yao, Shouyu & Pan, Yuying & Sensoy, Ahmet & Uddin, Gazi Salah & Cheng, Feiyang, 2021. "Green credit policy and firm performance: What we learn from China," Energy Economics, Elsevier, vol. 101(C).
    5. Khan, Muhammad T. & Thopil, George Alex & Lalk, Jorg, 2016. "Review of proposals for practical power sector restructuring and reforms in a dynamic electricity supply industry," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 326-335.
    6. Tooraj Jamasb & Rabindra Nepal & Govinda Timilsina & Michael Toman, 2014. "Energy Sector Reform, Economic Efficiency and Poverty Reduction," Discussion Papers Series 529, School of Economics, University of Queensland, Australia.
    7. Kong, Qunxi & Shen, Chenrong & Li, Rongrong & Wong, Zoey, 2021. "High-speed railway opening and urban green productivity in the post-COVID-19: Evidence from green finance," Global Finance Journal, Elsevier, vol. 49(C).
    8. Karanfil, Fatih & Omgba, Luc Désiré, 2019. "Do the IMF’s structural adjustment programs help reduce energy consumption and carbon intensity? Evidence from developing countries," Structural Change and Economic Dynamics, Elsevier, vol. 49(C), pages 312-323.
    9. Taghizadeh-Hesary, Farhad & Yoshino, Naoyuki & Inagaki, Yugo & Morgan, Peter J., 2021. "Analyzing the factors influencing the demand and supply of solar modules in Japan – Does financing matter," International Review of Economics & Finance, Elsevier, vol. 74(C), pages 1-12.
    10. Bell, William Paul & Wild, Phillip & Foster, John & Hewson, Michael, 2017. "Revitalising the wind power induced merit order effect to reduce wholesale and retail electricity prices in Australia," Energy Economics, Elsevier, vol. 67(C), pages 224-241.
    11. Hammerle, Mara & Burke, Paul J., 2022. "From natural gas to electric appliances: Energy use and emissions implications in Australian homes," Energy Economics, Elsevier, vol. 110(C).
    12. Akhter Ali & Dil Bahadur Rahut & Khondoker Abdul Mottaleb & Jeetendra Prakash Aryal, 2019. "Alternate energy sources for lighting among rural households in the Himalayan region of Pakistan: Access and impact," Energy & Environment, , vol. 30(7), pages 1291-1312, November.
    13. Asantewaa, Adwoa & Jamasb, Tooraj & Llorca, Manuel, 2022. "Reforming Small Electricity Systems: Market Design and Competition," Working Papers 12-2022, Copenhagen Business School, Department of Economics.
    14. Jamasb,Tooraj & Nepal,Rabindra & Timilsina,Govinda R., 2015. "A quarter century effort yet to come of age : a survey of power sector reforms in developing countries," Policy Research Working Paper Series 7330, The World Bank.
    15. Farhad Taghizadeh-Hesary & Naoyuki Yoshino, 2020. "Sustainable Solutions for Green Financing and Investment in Renewable Energy Projects," Energies, MDPI, vol. 13(4), pages 1-18, February.
    16. Li, Weiqing & Chien, Fengsheng & Ngo, Quang-Thanh & Nguyen, Tien-Dung & Iqbal, Sajid & Bilal, Ahmad Raza, 2021. "Vertical financial disparity, energy prices and emission reduction: Empirical insights from Pakistan," MPRA Paper 109672, University Library of Munich, Germany.
    17. Yoshino, Naoyuki & Taghizadeh-Hesary, Farhad & Otsuka, Miyu, 2021. "Covid-19 and Optimal Portfolio Selection for Investment in Sustainable Development Goals," Finance Research Letters, Elsevier, vol. 38(C).
    18. Tiep, Nguyen Cong & Wang, Mengqi & Mohsin, Muhammad & Kamran, Hafiz Waqas & Yazdi, Farzaneh Ahmadian, 2021. "An assessment of power sector reforms and utility performance to strengthen consumer self-confidence towards private investment," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 676-689.
    19. Amin, Sakib Bin & Chowdhury, Mainul Islam & Jamasb, Tooraj & Khan, Farhan & Nepal, Rabindra, 2023. "Green Energy Finance and Gender Disparity: The Case of Mountain Areas in Bangladesh," Working Papers 2-2023, Copenhagen Business School, Department of Economics.
    20. Liu, Diyi & Qi, Suntong & Xu, Tiantong, 2023. "In the post-subsidy era: How to encourage mere consumers to become prosumers when subsidy reduced?," Energy Policy, Elsevier, vol. 174(C).

    More about this item

    Keywords

    Solar energy; Market-based reform; Sustainable development; Green finance; Myanmar;
    All these keywords.

    JEL classification:

    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecanpo:v:69:y:2021:i:c:p:629-639. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/economic-analysis-and-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.