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Demand for Electricity Connection in Rural Areas:The Case of Kenya


  • Abdullah, Sabah
  • Jeanty, P. Wilner


A modern form of energy, in particular electricity for household use, is an important vehicle in alleviating poverty in developing countries. However, access and costs of connecting to this service for most poor in these countries is inconceivable. Policies promoting electricity connection in rural areas are known to be beneficial in improving the socio-economic and health well-being for households. This paper examines willingness to pay (WTP) for rural electrification connection in Kisumu district, Kenya, using the contingent valuation method (CVM). A nonparametric and a parametric model are employed to estimate WTP values for two electricity products: grid electricity (GE) and photovoltaic (PV) electricity. The results indicate that respondents are willing to pay more for GE services than PV and households favoured monthly connection payments over a lump sum amount. Some of the policies suggested in this paper include: subsidizing the connection costs for both sources of electricity, adjusting the payment periods, and restructuring the market ownership of providing rural electricity services.

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  • Abdullah, Sabah & Jeanty, P. Wilner, 2009. "Demand for Electricity Connection in Rural Areas:The Case of Kenya," Department of Economics Working Papers 17070, University of Bath, Department of Economics.
  • Handle: RePEc:eid:wpaper:17070

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    Cited by:

    1. Hirmer, Stephanie & Cruickshank, Heather, 2014. "The user-value of rural electrification: An analysis and adoption of existing models and theories," Renewable and Sustainable Energy Reviews, Elsevier, vol. 34(C), pages 145-154.
    2. Peters, Jörg & Sievert, Maximiliane & Lenz, Luciane & Munyehirwe, Anicet, 2015. "Impact evaluation of Netherlands supported programmes in the area of energy and development cooperation in Rwanda: The provision of grid electricity to households through the Electricity Access Roll-o," RWI Materialien 96, RWI - Leibniz-Institut für Wirtschaftsforschung.
    3. Lorenz Gollwitzer & David Ockwell & Adrian Ely, 2015. "Institutional Innovation in the Management of Pro-Poor Energy Access in East Africa," SPRU Working Paper Series 2015-29, SPRU - Science and Technology Policy Research, University of Sussex.
    4. Akcura, E., 2011. "Information Effects in Valuation of Electricity and Water Service Attributes Using Contingent Valuation," Cambridge Working Papers in Economics 1156, Faculty of Economics, University of Cambridge.

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    double bounded; contingent valuation; electricity connection; rural; willingness to pay (wtp);

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