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Are micro-benefits negligible? The implications of the rapid expansion of Solar Home Systems (SHS) in rural Bangladesh for sustainable development

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  • Komatsu, Satoru
  • Kaneko, Shinji
  • Ghosh, Partha Pratim

Abstract

This paper examines the multiple benefits of the adoption of Solar Home Systems (SHS) and discusses the dissemination potential for sustainable rural livelihoods in developing countries. Based on a household survey conducted in rural Bangladesh, we first identify the impact of SHS on the reduction in energy costs and compare purchasing costs. We then examine household lifestyle changes following the adoption of SHS. Finally, we consider several price-reduction scenarios to examine the potential demand for SHS and to evaluate its future dissemination potential. The results of the analysis indicate that households with SHS successfully reduce their consumption of kerosene and dependency on rechargeable batteries, with the cost reductions accounting for some 20-30% of monthly expenditures on SHS. Moreover, most households with SHS can enjoy its benefits, including electric lighting, watching television, and the ease of mobile phone recharging at home. Further, the price reduction can make possible potential demand in more than 60% of households without SHS, while additional price reductions promote the purchase of even larger SHS packages. This study concludes that even though the scale of single SHS is small, the micro-benefits for each household and the dissemination potential are substantial.

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Bibliographic Info

Article provided by Elsevier in its journal Energy Policy.

Volume (Year): 39 (2011)
Issue (Month): 7 (July)
Pages: 4022-4031

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Handle: RePEc:eee:enepol:v:39:y:2011:i:7:p:4022-4031

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Keywords: Solar Home Systems Benefit assessment Bangladesh;

References

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  1. Barua, Dipal C., 2001. "Strategy for promotions and development of renewable technologies in Bangladesh: experience from Grameen Shakti," Renewable Energy, Elsevier, vol. 22(1), pages 205-210.
  2. Islam, A.K.M. Sadrul & Islam, Mazharul & Rahman, Tazmilur, 2006. "Effective renewable energy activities in Bangladesh," Renewable Energy, Elsevier, vol. 31(5), pages 677-688.
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  9. Byrne, John & Shen, Bo & Wallace, William, 1998. "The economics of sustainable energy for rural development: A study of renewable energy in rural China," Energy Policy, Elsevier, vol. 26(1), pages 45-54, January.
  10. Gustavsson, Mathias & EllegÄrd, Anders, 2004. "The impact of solar home systems on rural livelihoods. Experiences from the Nyimba Energy Service Company in Zambia," Renewable Energy, Elsevier, vol. 29(7), pages 1059-1072.
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Cited by:
  1. Li, Xuesong & Li, Hao & Wang, Xingwu, 2013. "Farmers' willingness to convert traditional houses to solar houses in rural areas: A survey of 465 households in Chongqing, China," Energy Policy, Elsevier, vol. 63(C), pages 882-886.

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