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A First Step up the Energy Ladder? Low Cost Solar Kits and Household's Welfare in Rural Rwanda

Author

Listed:
  • Grimm, Michael

    () (University of Passau)

  • Munyehirwe, Anicet

    (IB&C Rwanda)

  • Peters, Jörg

    () (RWI)

  • Sievert, Maximiliane

    () (RWI)

Abstract

More than 1.3 billion people lack access to electricity. The UN have proclaimed the goal of providing electricity to all by 2030. In recent years, Pico-Photovoltaic kits have become a lower cost alternative to investment intensive grid electrification. Using a randomized controlled trial we examine uptake and impacts of a simple Pico-Photovoltaic kit that barely exceeds the benchmark of what the UN considers as modern energy. We find significant effects on households' budget, productivity and convenience. Despite these effects, the data shows that adoption will be impeded by affordability, suggesting that policy has to consider subsidized dissemination strategies.

Suggested Citation

  • Grimm, Michael & Munyehirwe, Anicet & Peters, Jörg & Sievert, Maximiliane, 2014. "A First Step up the Energy Ladder? Low Cost Solar Kits and Household's Welfare in Rural Rwanda," IZA Discussion Papers 8594, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp8594
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    References listed on IDEAS

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    Cited by:

    1. repec:taf:jdevef:v:9:y:2017:i:2:p:277-294 is not listed on IDEAS
    2. Lenz, Luciane & Munyehirwe, Anicet & Peters, Jörg & Sievert, Maximiliane, 2017. "Does Large-Scale Infrastructure Investment Alleviate Poverty? Impacts of Rwanda’s Electricity Access Roll-Out Program," World Development, Elsevier, vol. 89(C), pages 88-110.
    3. Kudo, Yuya & Shonchoy, Abu S. & Takahashi, Kazushi, 2015. "Impacts of solar lanterns in geographically challenged locations : experimental evidence from Bangladesh," IDE Discussion Papers 502, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    4. Grimm, Michael & Peters, Jörg, 2016. "Solar off-grid markets in Africa: Recent dynamics and the role of branded products," Ruhr Economic Papers 619, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    5. Alem, Yonas & Hassen, Sied & Köhlin, Gunnar, 2018. "Decision-making within the Household: The Role of Autonomy and Differences in Preferences," Working Papers in Economics 724, University of Gothenburg, Department of Economics.
    6. repec:eee:rensus:v:90:y:2018:i:c:p:1060-1068 is not listed on IDEAS
    7. 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.

    More about this item

    Keywords

    energy access; household technology adoption; Sub-Saharan Africa; randomized controlled trial;

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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