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Rural Electrification Programmes in Kenya:Policy Conclusion from a Valuation Study

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  • Abdullah, Sabah
  • Markandya, Anil

Abstract

Developing countries have struggled with low electrification rates in the rural areas. This study investigates one major issue impeding the rural electrification programmes in rural Kenya: high connection payments. The paper uses estimates obtained from a stated preference study, namely a contingent valuation method completed in 2007, to examine the willingness to pay to connect to grid-electricity and photovoltaic services. Expanding rural electrification will need subsidies, but the study shows that some forms of subsidy are more effective than others. The key findings suggest that the government needs to reform the energy subsidies, increase market ownership and performance of private suppliers, establish financial schemes and create markets that vary according to social-economic and demographic groups.

Suggested Citation

  • Abdullah, Sabah & Markandya, Anil, 2009. "Rural Electrification Programmes in Kenya:Policy Conclusion from a Valuation Study," Department of Economics Working Papers 17069, University of Bath, Department of Economics.
  • Handle: RePEc:eid:wpaper:17069
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    File URL: http://opus.bath.ac.uk/17069/1/2509.pdf
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    References listed on IDEAS

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    1. Maher, P. & Smith, N.P.A. & Williams, A.A., 2003. "Assessment of pico hydro as an option for off-grid electrification in Kenya," Renewable Energy, Elsevier, vol. 28(9), pages 1357-1369.
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    Cited by:

    1. Johannes Breit & Satoru Komatsu & Shinji Kaneko & Partha Pratim Ghosh, 2016. "Evaluating households’ preferences regarding reducing power outages in rural areas: cases in the Ganges Floodplain in Bangladesh," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 18(1), pages 73-94, February.

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    Keywords

    rural electrification; willingness to pay (wtp); affordability; sub-saharan africa; energy;

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