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Are promotion programs needed to establish off-grid solar energy markets? Evidence from rural Burkina Faso

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  • Bensch, Gunther
  • Grimm, Michael
  • Huppertz, Maximilian
  • Langbein, Jörg
  • Peters, Jörg

Abstract

Off-grid solar electric power is a promising technology for remote regions in rural Africa where expansion of the electricity grids is prohibitively expensive. Using household data from a target region of an off-grid solar promotion program in the Kénédougou province in Burkina Faso, this paper explores the role of quality-verified branded solar home systems (SHS) versus non-branded ones. We find that the adoption rate of non-branded SHS is considerably higher at 36% compared to 8% for branded SHS. We compare potential quality differences as well as the cost-effectiveness of branded and non-branded solar products. We show that non-branded SHSs offer a similar service level as branded solar, that they do not fall behind in terms of consumer satisfaction and durability, and that non-branded products are more cost-effective. These findings suggest that promotion programs and branded solar products do not seem to be necessary in Burkina Faso and might also not be needed to establish sustainable off-grid solar markets elsewhere provided that non-branded products are available. The challenge however is to reach the very poor who are unable to bring up investment costs for any electricity.

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  • Bensch, Gunther & Grimm, Michael & Huppertz, Maximilian & Langbein, Jörg & Peters, Jörg, 2018. "Are promotion programs needed to establish off-grid solar energy markets? Evidence from rural Burkina Faso," Renewable and Sustainable Energy Reviews, Elsevier, vol. 90(C), pages 1060-1068.
    • Handle: RePEc:eee:rensus:v:90:y:2018:i:c:p:1060-1068
    DOI: 10.1016/j.rser.2017.11.003
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    7. Luciane Lenz & Laura Montenbruck & Maximiliane Sievert, 2018. "Accidents caused by kerosene lamps—New evidence from African household data," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 7(4), July.
    8. Michael Grimm & Luciane Lenz & Jörg Peters & Maximiliane Sievert, 2020. "Demand for Off-Grid Solar Electricity: Experimental Evidence from Rwanda," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 7(3), pages 417-454.
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    10. Paul G. Munro & Shanil Samarakoon & Ulrich E. Hansen & Matthew Kearnes & Anna Bruce & Jamie Cross & Sarah Walker & Collen Zalengera, 2023. "Towards a repair research agenda for off-grid solar e-waste in the Global South," Nature Energy, Nature, vol. 8(2), pages 123-128, February.
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    More about this item

    Keywords

    Energy access; Energy poverty; Technology adoption; Branded products; Cost-effectiveness; Rural Africa;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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