IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v120y2023ics0140988323000981.html
   My bibliography  Save this article

Reducing information barriers to solar adoption: Experimental evidence from India

Author

Listed:
  • Mahadevan, Meera
  • Meeks, Robyn
  • Yamano, Takashi

Abstract

Off-grid solar technologies hold promise for unelectrified and low-quality electricity settings; however, their adoption remains low. Important barriers to adoption, such as incomplete information remain relatively unexplored in developing countries. In collaboration with a solar company, a randomized experiment was implemented in three Indian states to test whether alleviating information asymmetries between sales agents and potential customers improved predictors and other indicators of adoption of solar rooftop systems. The company’s sales agents were randomly assigned to receive a tablet with either an application designed to ensure potential customers received accurate solar product information during the sales process or only the basic sales catalogue uploaded. Post-treatment, prospective customers approached by the treated sales agents report greater knowledge of the solar products and a better impression of sales agents’ product knowledge and professionalism. The treatment significantly increased potential customers’ intent-to-adopt, a stated preference measure, by 15%; however, the impact on actual adoption was statistically insignificant.

Suggested Citation

  • Mahadevan, Meera & Meeks, Robyn & Yamano, Takashi, 2023. "Reducing information barriers to solar adoption: Experimental evidence from India," Energy Economics, Elsevier, vol. 120(C).
  • Handle: RePEc:eee:eneeco:v:120:y:2023:i:c:s0140988323000981
    DOI: 10.1016/j.eneco.2023.106600
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140988323000981
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.eneco.2023.106600?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Alberto Abadie & Susan Athey & Guido W Imbens & Jeffrey M Wooldridge, 2023. "When Should You Adjust Standard Errors for Clustering?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 138(1), pages 1-35.
    2. Katrina Jessoe & David Rapson, 2014. "Knowledge Is (Less) Power: Experimental Evidence from Residential Energy Use," American Economic Review, American Economic Association, vol. 104(4), pages 1417-1438, April.
    3. 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.
    4. Kenneth Lee & Edward Miguel & Catherine Wolfram, 2016. "Appliance Ownership and Aspirations among Electric Grid and Home Solar Households in Rural Kenya," American Economic Review, American Economic Association, vol. 106(5), pages 89-94, May.
    5. Afridi, Farzana & Debnath, Sisir & Somanathan, E., 2021. "A breath of fresh air: Raising awareness for clean fuel adoption," Journal of Development Economics, Elsevier, vol. 151(C).
    6. Robert Jensen, 2007. "The Digital Provide: Information (Technology), Market Performance, and Welfare in the South Indian Fisheries Sector," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(3), pages 879-924.
    7. Yonas Alem & Eugenie Dugoua, 2022. "Learning from Unincentivized and Incentivized Communication: A Randomized Controlled Trial in India," Economic Development and Cultural Change, University of Chicago Press, vol. 71(1), pages 1-38.
    8. Jenny C. Aker & Kelsey Jack, 2021. "Harvesting the Rain: The Adoption of Environmental Technologies in the Sahel," NBER Working Papers 29518, National Bureau of Economic Research, Inc.
    9. Andrew D. Foster & Mark R. Rosenzweig, 2010. "Microeconomics of Technology Adoption," Annual Review of Economics, Annual Reviews, vol. 2(1), pages 395-424, September.
    10. Wong, Jason Chun Yu & Blankenship, Brian & Harish, S.P. & Urpelainen, Johannes, 2022. "Increasing microsolar technology adoption: Efficacy of vouchers, cash transfers, and microfinance schemes," Energy Economics, Elsevier, vol. 110(C).
    11. Girardeau, Hannah & Oberholzer, Alicia & Pattanayak, Subhrendu K., 2021. "The enabling environment for household solar adoption: A systematic review," World Development Perspectives, Elsevier, vol. 21(C).
    12. Sheoli Pargal & Sudeshna Ghosh Banerjee, 2014. "More Power to India : The Challenge of Electricity Distribution," World Bank Publications - Books, The World Bank Group, number 18726, December.
    13. Sievert, Maximiliane & Steinbuks, Jevgenijs, 2020. "Willingness to pay for electricity access in extreme poverty: Evidence from sub-Saharan Africa," World Development, Elsevier, vol. 128(C).
    14. Robin Burgess & Michael Greenstone & Nicholas Ryan & Anant Sudarshan, 2020. "Demand for Electricity on the Global Electrification Frontier," Cowles Foundation Discussion Papers 2222, Cowles Foundation for Research in Economics, Yale University.
    15. Ashraf, Nava & Jack, B. Kelsey & Kamenica, Emir, 2013. "Information and subsidies: Complements or substitutes?," Journal of Economic Behavior & Organization, Elsevier, vol. 88(C), pages 133-139.
    16. Alem, Yonas & Dugoua, Eugenie, 2022. "Learning from unincentivized and incentivized communication: a randomized controlled trial in India," LSE Research Online Documents on Economics 110858, London School of Economics and Political Science, LSE Library.
    17. Robert Jensen, 2010. "The (Perceived) Returns to Education and the Demand for Schooling," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(2), pages 515-548.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. d'Adda, Giovanna & Mahmud, Mahreen & Said, Farah & Bonan, Jacopo, 2020. "The Role of Flexibility and Planning in Repayment Discipline: Evidence from a Field Experiment on Pay-as-You-Go Off-Grid Electricity," RFF Working Paper Series 20-14, Resources for the Future.
    2. Jonas Hjort & Vinayak Iyer & Golvine De Rochambeau, 2020. "Informational Barriers to Market Access: Experimental Evidence from Liberian Firms," Sciences Po publications 2020-09, Sciences Po.
    3. Florian Egli & Churchill Agutu & Bjarne Steffen & Tobias S. Schmidt, 2023. "The cost of electrifying all households in 40 Sub-Saharan African countries by 2030," Nature Communications, Nature, vol. 14(1), pages 1-10, December.
    4. Meriggi, Niccolò F. & Bulte, Erwin & Mobarak, Ahmed Mushfiq, 2021. "Subsidies for technology adoption: Experimental evidence from rural Cameroon," Journal of Development Economics, Elsevier, vol. 153(C).
    5. Jonas Hjort & Vinayak Iyer & Golvine de Rochambeau, 2020. "Informational Barriers to Market Access: Experimental Evidence from Liberian Firms," SciencePo Working papers Main hal-03389180, HAL.
    6. repec:hal:wpspec:info:hdl:2441/6jahov5tde8vt9aplqrgg3trl4 is not listed on IDEAS
    7. repec:hal:spmain:info:hdl:2441/6jahov5tde8vt9aplqrgg3trl4 is not listed on IDEAS
    8. Bjorn Van Campenhout & Emmanuel Bizimungu, 2018. "Risk and returns of sustainable crop intensification: The case of smallholder rice and potato farmers in Uganda," Development Policy Review, Overseas Development Institute, vol. 36(S2), pages 605-633, September.
    9. Tahir Andrabi & Jishnu Das & Asim Ijaz Khwaja, 2017. "Report Cards: The Impact of Providing School and Child Test Scores on Educational Markets," American Economic Review, American Economic Association, vol. 107(6), pages 1535-1563, June.
    10. B Kelsey Jack, "undated". "Market Inefficiencies and the Adoption of Agricultural Technologies in Developing Countries," CID Working Papers 50, Center for International Development at Harvard University.
    11. Kenneth T. Gillingham & Sébastien Houde & Arthur A. van Benthem, 2021. "Consumer Myopia in Vehicle Purchases: Evidence from a Natural Experiment," American Economic Journal: Economic Policy, American Economic Association, vol. 13(3), pages 207-238, August.
    12. Mérel, Pierre & Ortiz-Bobea, Ariel & Paroissien, Emmanuel, 2021. "How big is the “lemons” problem? Historical evidence from French wines," European Economic Review, Elsevier, vol. 138(C).
    13. Robin Burgess & Michael Greenstone & Nicholas Ryan & Anant Sudarshan, 2020. "Demand for Electricity on the Global Electrification Frontier," Cowles Foundation Discussion Papers 2222, Cowles Foundation for Research in Economics, Yale University.
    14. Robin Burgess & Michael Greenstone & Nicholas Ryan & Anant Sudarshan, 2020. "The Consequences of Treating Electricity as a Right," Journal of Economic Perspectives, American Economic Association, vol. 34(1), pages 145-169, Winter.
    15. de Janvry, Alain & Sadoulet, Elisabeth, 2020. "Using agriculture for development: Supply- and demand-side approaches," World Development, Elsevier, vol. 133(C).
    16. Burlig, Fiona & Preonas, Louis & Woerman, Matt, 2020. "Panel data and experimental design," Journal of Development Economics, Elsevier, vol. 144(C).
    17. Astrid Mastenbroek & Irma Sirutyte & Robert Sparrow, 2021. "Information Barriers to Adoption of Agricultural Technologies: Willingness to Pay for Certified Seed of an Open Pollinated Maize Variety in Northern Uganda," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(1), pages 180-201, February.
    18. Peters, Jörg & Langbein, Jörg & Roberts, Gareth, 2016. "Policy evaluation, randomized controlled trials, and external validity—A systematic review," Economics Letters, Elsevier, vol. 147(C), pages 51-54.
    19. Deutschmann, Joshua W. & Postepska, Agnieszka & Sarr, Leopold, 2021. "Measuring willingness to pay for reliable electricity: Evidence from Senegal," World Development, Elsevier, vol. 138(C).
    20. Bajo-Buenestado, Raúl, 2021. "The effect of blackouts on household electrification status: Evidence from Kenya," Energy Economics, Elsevier, vol. 94(C).
    21. Eszter Czibor & David Jimenez‐Gomez & John A. List, 2019. "The Dozen Things Experimental Economists Should Do (More of)," Southern Economic Journal, John Wiley & Sons, vol. 86(2), pages 371-432, October.
    22. 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).

    More about this item

    Keywords

    Solar; Energy; Technology adoption; Information; Development;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:120:y:2023:i:c:s0140988323000981. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eneco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.