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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
  • Munyehirwe,Anicet
  • Peters,Jorg
  • Sievert,Maximiliane

Abstract

More than 1.1 billion people in developing countries are lacking access to electricity. Based on the assumption that electricity is a prerequisite for human development, the United Nations has proclaimed the goal of providing electricity to all by 2030. In recent years, Pico-Photovoltaic kits have become a low-cost alternative to investment intensive grid electrification. Using a randomized controlled trial, the paper examines uptake and impacts of a simple Pico-Photovoltaic kit that barely exceeds the modern energy benchmark defined by the United Nations. The authors find significant positive effects on household energy expenditures and some indication for effects on health, domestic productivity, and on the environment. Since only parts of these effects are internalized, underinvestment into the technology is likely. In addition, our data show that adoption will be impeded by affordability, suggesting that policy would have to consider more direct promotion strategies such as subsidies or financing schemes to reach the UN goal.

Suggested Citation

  • Grimm,Michael & Munyehirwe,Anicet & Peters,Jorg & Sievert,Maximiliane, 2016. "A first step up the energy ladder ? low cost solar kits and household's welfare in Rural Rwanda," Policy Research Working Paper Series 7859, The World Bank.
  • Handle: RePEc:wbk:wbrwps:7859
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. 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).
    3. 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.
    4. 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.

    More about this item

    Keywords

    City to City Alliances; Urban Economic Development; Urban Communities; Inequality; Regional Urban Development; National Urban Development Policies&Strategies; Urban Economics;

    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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