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Supply-side constraints to technology adoption: The market for energy-efficient cookstoves in rural Senegal

Author

Listed:
  • Sievert, Maximiliane
  • Ankel-Peters, Jörg
  • Jeuland, Marc
  • Lenz, Luciane
  • Ndiaye, Ousmane
  • Usmani, Faraz

Abstract

Diffusion of technology that improves welfare is a global policy priority. We study the market for energyefficient biomass cookstoves in rural Senegal. Our surveys cover stove producers and intermediary vendors on the supply side and also elicit demand from rural households using real-purchase offers. We randomly relax supply-side constraints among vendors by providing demand information, marketing materials, and a transportation grant to bridge the last mile to villages where customers reside. We find that the transportation grant increases vendor sales, but overall, our results indicate that market conditions are challenging: markups are lower than for competing products and demand is volatile. This combination of high risks and low profits need to be addressed by policy interventions if large-scale diffusion is the goal.

Suggested Citation

  • Sievert, Maximiliane & Ankel-Peters, Jörg & Jeuland, Marc & Lenz, Luciane & Ndiaye, Ousmane & Usmani, Faraz, 2024. "Supply-side constraints to technology adoption: The market for energy-efficient cookstoves in rural Senegal," Ruhr Economic Papers 1092, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:302184
    DOI: 10.4419/96973269
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    References listed on IDEAS

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    2. Beltramo, Theresa & Blalock, Garrick & Levine, David I. & Simons, Andrew M., 2015. "The effect of marketing messages and payment over time on willingness to pay for fuel-efficient cookstoves," Journal of Economic Behavior & Organization, Elsevier, vol. 118(C), pages 333-345.
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    More about this item

    Keywords

    Technology adoption; supply side; improved cooking; liquidity constraints;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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