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What Impedes Efficient Adoption of Products? Evidence from Randomized Variation in Sales Offers for Improved Cookstoves in Uganda

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  • Levine, David I.
  • Cotterman, Carolyn

Abstract

Many people do not purchase products that would appear to benefit them. For example, the price of an efficient cookstove can be less than a few months’ savings on fuel. If liquidity constraints, present bias, and poor information on fuel savings and stove durability are barriers, then combining a free trial, time payments, and the right to return the stove at any time should increase sales. In a randomized trial, this offer increases uptake of an efficient charcoal-burning stove in Kampala, Uganda, from 4% to 46%. We provide additional evidence that both liquidity constraints and imperfect information were important barriers.

Suggested Citation

  • Levine, David I. & Cotterman, Carolyn, 2012. "What Impedes Efficient Adoption of Products? Evidence from Randomized Variation in Sales Offers for Improved Cookstoves in Uganda," Institute for Research on Labor and Employment, Working Paper Series qt7qk8m53w, Institute of Industrial Relations, UC Berkeley.
    • Handle: RePEc:cdl:indrel:qt7qk8m53w
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    References listed on IDEAS

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    1. Grossman, Sanford J, 1981. "The Informational Role of Warranties and Private Disclosure about Product Quality," Journal of Law and Economics, University of Chicago Press, vol. 24(3), pages 461-483, December.
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    Citations

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    Cited by:

    1. Vasundhara Bhojvaid & Marc Jeuland & Abhishek Kar & Jessica J. Lewis & Subhrendu K. Pattanayak & Nithya Ramanathan & Veerabhadran Ramanathan & Ibrahim H. Rehman, 2014. "How do People in Rural India Perceive Improved Stoves and Clean Fuel? Evidence from Uttar Pradesh and Uttarakhand," IJERPH, MDPI, vol. 11(2), pages 1-18, January.
    2. Alem, Yonas & Dugoua, Eugenie, 2021. "Learning from unincentivized and incentivized communication: A randomized controlled trial in India," Ruhr Economic Papers 895, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    3. Robyn Meeks & Katharine R. E. Sims & Hope Thompson, 2019. "Waste Not: Can Household Biogas Deliver Sustainable Development?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 72(3), pages 763-794, March.
    4. Kshirsagar, Milind P. & Kalamkar, Vilas R., 2014. "A comprehensive review on biomass cookstoves and a systematic approach for modern cookstove design," Renewable and Sustainable Energy Reviews, Elsevier, vol. 30(C), pages 580-603.
    5. Arthur Ssebbugga-Kimeze, 2022. "Opting for plug-in hybrid electric vehicles in Uganda: a non-cooperative game," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 27(6), pages 1-11, August.
    6. Urpelainen, Johannes & Yoon, Semee, 2017. "Can product demonstrations create markets for sustainable energy technology? A randomized controlled trial in rural India," Energy Policy, Elsevier, vol. 109(C), pages 666-675.
    7. 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.
    8. Stephanie L. Martin & Jennifer K. Arney & Lisa M. Mueller & Edward Kumakech & Fiona Walugembe & Emmanuel Mugisha, 2013. "Using Formative Research to Design a Behavior Change Strategy to Increase the Use of Improved Cookstoves in Peri-Urban Kampala, Uganda," IJERPH, MDPI, vol. 10(12), pages 1-19, December.
    9. Hewitt, Joseph & Ray, Charlotte & Jewitt, Sarah & Clifford, Mike, 2018. "Finance and the improved cookstove sector in East Africa; Barriers and opportunities for value-chain actors," Energy Policy, Elsevier, vol. 117(C), pages 127-135.

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    Keywords

    Social and Behavioral Sciences; JEL C93; D91; L15; L81; M31; D12; D82;
    All these keywords.

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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