The benefits of solar home systems :an analysis from Bangladesh
The Government of Bangladesh, with help from the World Bank and other donors, has provided aid to a local agency called Infrastructure Development Company Limited and its partner organizations to devise a credit scheme for marketing solar home system units and making these an affordable alternative to grid electricity for poor people in remote areas. This paper uses household survey data to examine the financing scheme behind the dissemination of these solar home systems, in particular the role of the subsidy; the factors that determine the adoption of the systems in rural Bangladesh; and the welfare impacts of such adoption. The paper finds that while the subsidy has been declining over time, the demand for solar home systems has seen phenomenal growth, mostly because of technological developments that have made the systems increasingly more affordable. Households with better physical and educational endowments are more likely to adopt solar home systems than poor households. The price of the system matters in household decision making -- a 10 percent decline in the price of the system increases the overall demand for a solar panel by 2 percent. As for the benefits, adoption of a solar home system improves children’s evening study time, lowers kerosene consumption, and provides health benefits for household members, in particular for women. It is also found to increase women's decision-making ability in certain household affairs. Finally, it is found to increase household consumption expenditure, although at a small scale.
|Date of creation:||01 Dec 2013|
|Date of revision:|
|Contact details of provider:|| Postal: 1818 H Street, N.W., Washington, DC 20433|
Phone: (202) 477-1234
Web page: http://www.worldbank.org/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- Lay, Jann & Ondraczek, Janosch & Stoever, Jana, 2013. "Renewables in the energy transition: Evidence on solar home systems and lighting fuel choice in Kenya," Energy Economics, Elsevier, vol. 40(C), pages 350-359.
- Janosch Ondraczek & Jann Lay & Jana Stoever, 2012. "Renewables in the energy transition - Evidence on solar home systems and lighting fuel choice in Kenya," Working Papers FNU-198, Research unit Sustainability and Global Change, Hamburg University.
- Lay, Jann & Ondraczek, Janosch & Stöver, Jana, 2012. "Renewables in the energy transition: Evidence on solar home systems and lighting fuel choice in Kenya," HWWI Research Papers 121, Hamburg Institute of International Economics (HWWI).
- Shahidur R. Khandker & Gayatri B. Koolwal & Hussain A. Samad, 2010. "Handbook on Impact Evaluation : Quantitative Methods and Practices," World Bank Publications, The World Bank, number 2693.
- Taryn Dinkelman, 2011. "The Effects of Rural Electrification on Employment: New Evidence from South Africa," American Economic Review, American Economic Association, vol. 101(7), pages 3078-3108, December.
- Wamukonya, Njeri, 2007. "Solar home system electrification as a viable technology option for Africa's development," Energy Policy, Elsevier, vol. 35(1), pages 6-14, January.
- Christian A. Friebe & Paschen P. von Flotow & Florian Taübe, 2013. "Exploring the link between products and services in low-income markets: Evidence from solar home systems," ULB Institutional Repository 2013/206765, ULB -- Universite Libre de Bruxelles.
When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:6724. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi)
If references are entirely missing, you can add them using this form.