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What Impedes Efficient Adoption of Products? Evidence from Randomized Sales Offers for Fuel-Efficient Cookstoves in Uganda

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  • David I Levine
  • Theresa Beltramo
  • Garrick Blalock
  • Carolyn Cotterman
  • Andrew M Simons

Abstract

Many consumers do not adopt products with health and wellbeing benefits apparently far greater than their costs. A sales offer combining a free trial, time payments, and the option of returning the product can overcome barriers such as liquidity constraints and poor information about benefits and usability. We tested this sales offer (and alternatives) in an experiment with a fuel-efficient charcoal stove in urban Uganda and a fuel-efficient wood stove in rural Uganda. Consistent with the importance of these barriers, this offer dramatically increased uptake—in urban Kampala, from 4% to 46%, and in rural Mbarara, from 5% to 57%.

Suggested Citation

  • David I Levine & Theresa Beltramo & Garrick Blalock & Carolyn Cotterman & Andrew M Simons, 2018. "What Impedes Efficient Adoption of Products? Evidence from Randomized Sales Offers for Fuel-Efficient Cookstoves in Uganda," Journal of the European Economic Association, European Economic Association, vol. 16(6), pages 1850-1880.
    • Handle: RePEc:oup:jeurec:v:16:y:2018:i:6:p:1850-1880.
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    File URL: http://hdl.handle.net/10.1093/jeea/jvx051
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    Cited by:

    1. Gunther Bensch & Jörg Peters, 2020. "One‐Off Subsidies and Long‐Run Adoption—Experimental Evidence on Improved Cooking Stoves in Senegal," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(1), pages 72-90, January.
    2. Lenz, Luciane & Bensch, Gunther & Chartier, Ryan & Kane, Moustapha & Peters, Jörg & Jeuland, Marc, 2022. "Releasing the killer from the kitchen? Ventilation and air pollution from biomass cooking," Ruhr Economic Papers 967, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    3. Zaman, Rafia & Das, Debasish Kumar & van Vliet, Oscar & Posch, Alfred, 2021. "Distributional inequality in market-based solar home system programs: Evidence from rural Bangladesh," Energy Economics, Elsevier, vol. 103(C).
    4. Alem, Yonas, 2021. "Mitigating climate change through sustainable technology adoption: Insights from cookstove interventions," Ruhr Economic Papers 907, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    5. Adjei-Mantey, Kwame & Takeuchi, Kenji & Quartey, Peter, 2021. "Impact of LPG promotion program in Ghana: The role of distance to refill," Energy Policy, Elsevier, vol. 158(C).
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    7. Joseph,George & Ayling,Sophie Charlotte Emi & Miquel-Florensa,Pepita & Bejarano,Hernán D. & Cardona,Alejandra Quevedo, 2021. "Behavioral Insights in Infrastructure Sectors : A Survey," Policy Research Working Paper Series 9704, The World Bank.
    8. Abdul-Salam, Yakubu & Phimister, Euan, 2019. "Modelling the impact of market imperfections on farm household investment in stand-alone solar PV systems," World Development, Elsevier, vol. 116(C), pages 66-76.
    9. Ho, Thong Quoc & Nie, Zihan & Alpizar, Francisco & Carlsson, Fredrik & Nam, Pham Khanh, 2022. "Celebrity endorsement in promoting pro-environmental behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 198(C), pages 68-86.
    10. Casaburi, Lorenzo & ,, 2018. "Time vs. State in Insurance: Experimental Evidence from Contract Farming in Kenya," CEPR Discussion Papers 12896, C.E.P.R. Discussion Papers.
    11. Chattopadhyay, Mriduchhanda & Arimura, Toshi H. & Katayama, Hajime & Sakudo, Mari & Yokoo, Hide-Fumi, 2021. "Subjective probabilistic expectations, household air pollution, and health: Evidence from cooking fuel use patterns in West Bengal, India," Resource and Energy Economics, Elsevier, vol. 66(C).
    12. Thapa, Samir & Morrison, Mark & Parton, Kevin A, 2021. "Willingness to pay for domestic biogas plants and distributing carbon revenues to influence their purchase: A case study in Nepal," Energy Policy, Elsevier, vol. 158(C).
    13. Thiago Scarelli & David N Margolis, 2022. "When You Can't Afford to Wait for a Job: The Role of Time Discounting for Own-Account Workers in Developing Countries," Working Papers halshs-03288728, HAL.
    14. Bonan, Jacopo & Battiston, Pietro & Bleck, Jaimie & LeMay-Boucher, Philippe & Pareglio, Stefano & Sarr, Bassirou & Tavoni, Massimo, 2021. "Social interaction and technology adoption: Experimental evidence from improved cookstoves in Mali," World Development, Elsevier, vol. 144(C).
    15. Alem, Yonas & Ruhinduka, Remidius D., 2020. "Saving Africa's tropical forests through energy transition: A randomized controlled trial in Tanzania," Ruhr Economic Papers 885, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    16. Munyehirwe, Anicet & Peters, Jörg & Sievert, Maximiliane & Bulte, Erwin H. & Fiala, Nathan, 2022. "Energy efficiency and local rebound effects: Theory and experimental evidence from Rwanda," Ruhr Economic Papers 934, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    17. 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.
    18. Nduka, Eleanya, 2021. "How to get rural households out of energy poverty in Nigeria: A contingent valuation," Energy Policy, Elsevier, vol. 149(C).
    19. Alem, Yonas & Hassen, Sied & Köhlin, Gunnar, 2023. "Decision-making within the household: The role of division of labor and differences in preferences," Journal of Economic Behavior & Organization, Elsevier, vol. 207(C), pages 511-528.
    20. Simons, Andrew M., 2020. "Making Business Statistics Come Alive: Incorporating Field Trial Data from a Cookstove Study into the Classroom," Applied Economics Teaching Resources (AETR), Agricultural and Applied Economics Association, vol. 2(3), July.
    21. Wen, Hong-xing & Wang, Chan & Nie, Pu-yan, 2021. "Acceleration of rural households’ conversion to cleaner cooking fuels: The importance and mechanisms of peer effects," Energy Policy, Elsevier, vol. 154(C).
    22. Yokoo, Hide-Fumi & 横尾, 英史, 2020. "Ethics of randomized field experiments: Evidence from a randomized survey experiment," Discussion Papers 2020-07, Graduate School of Economics, Hitotsubashi University.
    23. Jeuland, Marc & Tan Soo, Jie-Sheng & Shindell, Drew, 2018. "The need for policies to reduce the costs of cleaner cooking in low income settings: Implications from systematic analysis of costs and benefits," Energy Policy, Elsevier, vol. 121(C), pages 275-285.
    24. Bensch, Gunther & Jeuland, Marc & Lenz, Luciane & Ndiaye, Ousmane, 2023. "A bridge to clean cooking? The cost-effectiveness of energy-efficient biomass stoves in rural Senegal," Ruhr Economic Papers 1057, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.

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