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

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  • 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
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    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.

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    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

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