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One-off subsidies and long-run adoption – Experimental evidence on improved cooking stoves in Senegal

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  • Bensch, Gunther
  • Peters, Jörg

Abstract

Free distribution of a technology can be an effective development policy instrument if its adoption is socially inefficient and hampered by affordability constraints. Improved cookstoves may be such a case: they generate high environmental and public health returns, but adoption is generally low. Based on a randomized controlled trial in rural Senegal, this paper studies whether one-time free cookstove distribution affects households’ willingness to pay (WTP) in the long run. Effects might be negative because people anchor their WTP on the earlier zero price (reference dependence) or positive because information deficits about potential benefits are overcome. We find that households who received a free stove six years back exhibit a higher WTP today compared to control households. Potential reference dependence effects are thus at least compensated by learning effects. Our findings suggest that one-time free distribution does not spoil future prices and might even be a stepping stone for future market establishment.

Suggested Citation

  • Bensch, Gunther & Peters, Jörg, "undated". "One-off subsidies and long-run adoption – Experimental evidence on improved cooking stoves in Senegal," Discussion Papers 256217, University of Bonn, Center for Development Research (ZEF).
    • Handle: RePEc:ags:ubzefd:256217
    DOI: 10.22004/ag.econ.256217
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    Cited by:

    1. Angelica De Fabrizio & Felipe Micangeli & Nicole Bernoni, 2025. "Behavioral and Experimental Economics for Policy Design in the Water-Energy-Food Nexus: A Systematic Review of Methods and Applications," Journal of Behavioral Economics for Policy, Society for the Advancement of Behavioral Economics (SABE), vol. 9(2), pages 47-56, December.
    2. Shukla, Pallavi & Pullabhotla, Hemant K. & Baylis, Kathy, 2022. "Trouble with zero: The limits of subsidizing technology adoption," Journal of Development Economics, Elsevier, vol. 158(C).
    3. Bensch, Gunther & Jeuland, Marc & Lenz, Luciane & Ndiaye, Ousmane, 2024. "A bridge to clean cooking? The cost-effectiveness of energy-efficient biomass stoves in rural Senegal," Energy Economics, Elsevier, vol. 140(C).
    4. J. Cristobal Ruiz-Tagle & Alejandra Schueftan, 2021. "Nudging for Cleaner Air: Experimental Evidence from an RCT on Wood Stove Usage," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 79(4), pages 713-743, August.
    5. Chowdhury, Reajul & Crost, Benjamin & Hoffmann, Vivian, 2022. "Marketing fortified rice: Effects of aspirational messaging and association with free distribution," Food Policy, Elsevier, vol. 112(C).
    6. Bensch, Gunther & Peters, Jörg, 2016. "Enablers of strong cookstove sales through a purchase offer approach in rural Senegal: An explorative analysis," Ruhr Economic Papers 650, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    7. 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).
    8. Rudolf, Katrin & Romero, Miriam & Asnawi, Rosyani & Irawan, Bambang & Wollni, Meike, 2020. "Effects of information and seedling provision on tree planting and survival in smallholder oil palm plantations," Journal of Environmental Economics and Management, Elsevier, vol. 104(C).
    9. Brenneis, Karina & Irawan, Bambang & Wollni, Meike, 2023. "Promoting agricultural technologies with positive environmental effects: Evidence on tree planting in Indonesia," Ecological Economics, Elsevier, vol. 204(PB).
    10. Bensch, Gunther & Kluve, Jochen & Stöterau, Jonathan, 2021. "The market-based dissemination of energy-access technologies as a business model for rural entrepreneurs: Evidence from Kenya," Resource and Energy Economics, Elsevier, vol. 66(C).
    11. Brander, Michael & Abro, Zewdu & Kassie, Menale & Mittmann, Wolfgang & Stiefel, Lukas & Huss, Matthias, 2025. "Small policy changes can accelerate the adoption of improved on-farm storage among smallholder farmers," World Development, Elsevier, vol. 195(C).
    12. Mekonnen,Alemu & Beyene,Abebe D. & Bluffstone,Randall Ames & Dissanayake,Sahan & Gebreegziabher,Zenebe & LaFave,Daniel & Martinsson,Peter & Toman,Michael A., 2020. "Improved Biomass Cookstove Use in the Longer Run : Results from a Field Experiment in Rural Ethiopia," Policy Research Working Paper Series 9272, The World Bank.
    13. Deutschmann, Joshua W., 2025. "Recognizing a good deal: Short-term subsidies and the dynamics of public service use," Journal of Environmental Economics and Management, Elsevier, vol. 130(C).
    14. Jeuland, Marc & Ndiaye, Ousmane & Usmani, Faraz, 2021. "The more choice, the better? Evidence from experimental auctions in rural Senegal," Economics Letters, Elsevier, vol. 206(C).
    15. 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).
    16. Bensch, Gunther & Grimm, Michael & Huppertz, Maximilian & Langbein, Jörg & Peters, Jörg, 2018. "Are promotion programs needed to establish off-grid solar energy markets? Evidence from rural Burkina Faso," Renewable and Sustainable Energy Reviews, Elsevier, vol. 90(C), pages 1060-1068.
    17. 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).
    18. 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.
    19. Ankel-Peters, Jörg & Bensch, Gunther & Köngeter, Alexandra & Rauschenbach, Mascha & Sievert, Maximiliane, 2024. "Are rural energy access programs pro-poor interventions?," Ruhr Economic Papers 1117, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.

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    Keywords

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    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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