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Subsidies, information, and energy-efficient cookstove adoption: A randomized uncontrolled trial in rural Ethiopia

Author

Listed:
  • Malan, Mandy
  • Voors, Marten
  • Ankel-Peters, Jörg
  • Seje, Selan J.
  • Heuburger, Lotte
  • Seid, Dawud
  • Mitiku, Abiyot

Abstract

Energy-efficient biomass cookstoves (EEBC) are an important technology for the three billion people relying on firewood and charcoal for cooking in the Global South. This paper assesses the price-responsiveness of demand for EEBC and the role of information about health and economic benefits. The pilot program under evaluation randomized different subsidy schemes (40%, 70%, and 100% subsidy) and information treatments across 292 Ethiopian villages. Unlike previous willingness-to-pay studies we examine a take-it-orleave-it approach in an uncontrolled and hence natural setting. We observe that EEBC demand is highly price-sensitive: There is virtually no EEBC uptake in the no-subsidy group, irrespective of which information households received. Yet, uptake increases considerably for households who received a high subsidy (70% or a 100%). Adding information on economic benefits nearly doubles uptake when coupled with such high subsidies. Our results confirm the emerging picture in the literature suggesting that subsidization for EEBC is required to foster widespread adoption.

Suggested Citation

  • Malan, Mandy & Voors, Marten & Ankel-Peters, Jörg & Seje, Selan J. & Heuburger, Lotte & Seid, Dawud & Mitiku, Abiyot, 2023. "Subsidies, information, and energy-efficient cookstove adoption: A randomized uncontrolled trial in rural Ethiopia," Ruhr Economic Papers 1036, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:1036
    DOI: 10.4419/96973205
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    References listed on IDEAS

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    1. James Berry & Greg Fischer & Raymond Guiteras, 2020. "Eliciting and Utilizing Willingness to Pay: Evidence from Field Trials in Northern Ghana," Journal of Political Economy, University of Chicago Press, vol. 128(4), pages 1436-1473.
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    Keywords

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    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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