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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

    (University of Passau)

  • Munyehirwe, Anicet

    (IB&C Rwanda)

  • Peters, Jörg

    (RWI)

  • Sievert, Maximiliane

    (RWI)

Abstract

More than 1.3 billion people lack access to electricity. The UN have proclaimed the goal of providing electricity 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 has to consider subsidized dissemination strategies.

Suggested Citation

  • Grimm, Michael & Munyehirwe, Anicet & Peters, Jörg & Sievert, Maximiliane, 2014. "A First Step up the Energy Ladder? Low Cost Solar Kits and Household's Welfare in Rural Rwanda," IZA Discussion Papers 8594, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8594
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    More about this item

    Keywords

    energy access; 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

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