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Speaking from experience: Preferences for cooking with biogas in rural India

Author

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  • Talevi, Marta
  • Pattanayak, Subhrendu K.
  • Das, Ipsita
  • Lewis, Jessica J.
  • Singha, Ashok K.

Abstract

Biogas has the potential to satisfy the clean energy needs of millions of households in under-served and energy-poor rural areas, while reducing both private and social costs linked to (i) fuels for household cooking, (ii) fertilizers, (iii) pressure on forests, and (iv) emissions (e.g., PM2.5 and methane) that damage both household health and global climate. While the literature has focused on identifying these costs, less attention has been paid to household preferences for biogas systems — specifically what attributes are popular with which types of households. We conduct a discrete choice experiment with 503 households in rural Odisha, India, to better characterize preferences for different attributes (smoke reduction, fuel efficiency, and maintenance) and for different cooking technologies (biogas and an improved biomass cookstove). We find that on average households value smoke reduction and fuel efficiency. Willingness to pay (WTP) a premium for the improved biomass cookstove is low, while willingness to pay a premium for biogas is high. Nonetheless, WTP varies by the type of previous experience with biogas (e.g., good or bad experience) and with time and risk preferences of households. While risk-averse and impatient respondents have lower WTP for the improved cookstoves, previous experience with biogas attenuates this gap. These findings suggest that biogas uptake and diffusion could be improved by complementing existing subsidies with technology trials, good quality products, maintenance, and customer services to reduce uncertainty.

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  • Talevi, Marta & Pattanayak, Subhrendu K. & Das, Ipsita & Lewis, Jessica J. & Singha, Ashok K., 2022. "Speaking from experience: Preferences for cooking with biogas in rural India," Energy Economics, Elsevier, vol. 107(C).
    • Handle: RePEc:eee:eneeco:v:107:y:2022:i:c:s0140988321006289
    DOI: 10.1016/j.eneco.2021.105796
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    2. Bensch, Gunther & Grimm, Michael, 2024. "Behavioural constraints in energy technology uptake: Evidence from real-purchase offers in rural Rwanda and Senegal," Ruhr Economic Papers 1081, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    3. Puppala, Harish & Ahuja, Jaya & Tamvada, Jagannadha Pawan & Peddinti, Pranav R T, 2023. "New technology adoption in rural areas of emerging economies: The case of rainwater harvesting systems in India," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    4. Ahmad, Munir & Jabeen, Gul, 2023. "Biogas technology adoption and household welfare perspectives for sustainable development," Energy Policy, Elsevier, vol. 181(C).
    5. Awaworyi Churchill, Sefa & Smyth, Russell, 2022. "Protestantism and energy poverty," Energy Economics, Elsevier, vol. 111(C).
    6. 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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    Keywords

    Energy poverty; Biogas; Improved cookstoves; Air pollution; Firewood; Discrete choice experiment; Odisha;
    All these keywords.

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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