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Renewables in the Energy Transition: Evidence on Solar Home Systems and Lighting-Fuel Choice in Kenya

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  • Jann Lay

    () (GIGA German Institute of Global and Area Studies)

  • Janosch Ondraczek

    () (GIGA German Institute of Global and Area Studies)

  • Jana Stoever

    () (GIGA German Institute of Global and Area Studies)

Abstract

We study the determinants of households’ choices of lighting fuels in Kenya, including the option of using solar home systems (SHSs). The paper adds new evidence on the factors that influence the introduction and adoption of decentralized and less carbon-intensive energy sources in developing countries. We capitalize on a unique representative survey on energy use and sources from Kenya, one of the few relatively well-established SHSs markets in the world. Our results reveal some very interesting patterns in the fuel transition in the context of lighting-fuel choices. While we find clear evidence for a crosssectional energy ladder, the income threshold for modern fuel use – including solar energy use – is very high. Income and education turn out to be key determinants of SHSs adoption, but we also find a very pronounced effect of SHSs clustering. In addition, we do not find a negative correlation between grid access and SHSs use.

Suggested Citation

  • Jann Lay & Janosch Ondraczek & Jana Stoever, 2012. "Renewables in the Energy Transition: Evidence on Solar Home Systems and Lighting-Fuel Choice in Kenya," GIGA Working Paper Series 198, GIGA German Institute of Global and Area Studies.
  • Handle: RePEc:gig:wpaper:198
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    References listed on IDEAS

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    Cited by:

    1. Samad, Hussain A. & Khandk, Shahidur R. & Asaduzzaman, M. & Yunus, Mohammad, 2013. "The benefits of solar home systems :an analysis from Bangladesh," Policy Research Working Paper Series 6724, The World Bank.
    2. Prinsloo, Gerro & Mammoli, Andrea & Dobson, Robert, 2016. "Discrete cogeneration optimization with storage capacity decision support for dynamic hybrid solar combined heat and power systems in isolated rural villages," Energy, Elsevier, vol. 116(P1), pages 1051-1064.
    3. repec:eee:rensus:v:79:y:2017:i:c:p:71-81 is not listed on IDEAS
    4. Ulrich Zierahn, 2012. "The effect of market access on the labor market: Evidence from German reunification," MAGKS Papers on Economics 201239, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    5. Jean Hugues Nlom & Aziz A. Karimov, 2015. "Modeling Fuel Choice among Households in Northern Cameroon," Sustainability, MDPI, Open Access Journal, vol. 7(8), pages 1-11, July.
    6. Rasmus Lema & Björn Johnson & Allan Dahl Andersen & Bengt-Åke Lundvall & Ankur Chaudhary (ed.), 2014. "Low-Carbon Innovation and Development," Globelics Thematic Reviews, Globelics - Global Network for Economics of Learning, Innovation, and Competence Building Systems, Aalborg University, Department of Business and Management, number low-carbon.
    7. Torben Kuhlenkasper & Max Friedrich Steinhardt, 2012. "Who Leaves and When?: Selective Outmigration of Immigrants from Germany," SOEPpapers on Multidisciplinary Panel Data Research 490, DIW Berlin, The German Socio-Economic Panel (SOEP).
    8. Hillmann, Katja & Hohenleitner, Ingrid, 2012. "Impact of benefit sanctions on unemployment outflow: Evidence from German survey data," HWWI Research Papers 129, Hamburg Institute of International Economics (HWWI).
    9. Hansen, Ulrich Elmer & Pedersen, Mathilde Brix & Nygaard, Ivan, 2015. "Review of solar PV policies, interventions and diffusion in East Africa," Renewable and Sustainable Energy Reviews, Elsevier, vol. 46(C), pages 236-248.
    10. repec:eee:enepol:v:109:y:2017:i:c:p:666-675 is not listed on IDEAS
    11. Ondraczek, Janosch, 2014. "Are we there yet? Improving solar PV economics and power planning in developing countries: The case of Kenya," Renewable and Sustainable Energy Reviews, Elsevier, vol. 30(C), pages 604-615.
    12. repec:ove:journl:aid:11341 is not listed on IDEAS
    13. Stephan Klasen & Tukae Mbegalo, 2016. "The Impact of Livestock Ownership on Solar Home System Adoption in the Northern and Western Regions of Rural Tanzania," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 218, Courant Research Centre PEG.
    14. Leppin, Julian S. & Reitz, Stefan, 2014. "The role of a changing market: Environment for credit default swap pricing," HWWI Research Papers 153, Hamburg Institute of International Economics (HWWI).
    15. Julian S. Leppin & Stefan Reitz, 2016. "The Role of a Changing Market Environment for Credit Default Swap Pricing," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 21(3), pages 209-223, July.
    16. Bräuninger, Michael, 2014. "Tax sovereignty and feasibility of international regulations for tobacco tax policies," HWWI Research Papers 152, Hamburg Institute of International Economics (HWWI).
    17. repec:eee:enepol:v:107:y:2017:i:c:p:425-436 is not listed on IDEAS
    18. Karakaya, Emrah & Sriwannawit, Pranpreya, 2015. "Barriers to the adoption of photovoltaic systems: The state of the art," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 60-66.
    19. Sen Guo & Huiru Zhao & Chunjie Li & Haoran Zhao & Bingkang Li, 2016. "Significant Factors Influencing Rural Residents’ Well-Being with Regard to Electricity Consumption: An Empirical Analysis in China," Sustainability, MDPI, Open Access Journal, vol. 8(11), pages 1-13, November.
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    21. Mandelli, Stefano & Barbieri, Jacopo & Mereu, Riccardo & Colombo, Emanuela, 2016. "Off-grid systems for rural electrification in developing countries: Definitions, classification and a comprehensive literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 1621-1646.
    22. Ondraczek, Janosch, 2013. "The sun rises in the east (of Africa): A comparison of the development and status of solar energy markets in Kenya and Tanzania," Energy Policy, Elsevier, vol. 56(C), pages 407-417.
    23. Vöpel, Henning, 2013. "A Zidane clustering theorem: Why top players tend to play in one team and how the competitive balance can be restored," HWWI Research Papers 141, Hamburg Institute of International Economics (HWWI).

    More about this item

    Keywords

    renewable energy; household fuel choice; lighting-fuel choice; solar power use; solar home systems; Kenya; energy ladder; KIHBS;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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