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Cost-effectiveness of rural energy access strategies

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Listed:
  • Ankel-Peters, Jörg
  • Bensch, Gunther
  • Moull, Kevin
  • Rauschenbach, Mascha
  • Sievert, Maximiliane

Abstract

Quantitative benchmarks for cost-effective provision of rural energy access are difficult to obtain because deployment costs vary across technologies, contexts, and technical assistance approaches - but crucially also across sustainability assumptions. As an alternative, this policy perspective provides a qualitative cost-effectiveness assessment of different energy access strategies. We discuss the different cost factors, accounting for differences in impact potentials across rural energy access options. We include on-grid and off-grid electrification and improved cooking technologies. The focus is on rural sub-Saharan Africa (SSA), where energy access rates are low. We document largely disappointing impacts of high-power electrification technologies, turning stand-alone solar into the more cost-effective electrification strategy in that setting. We conclude by emphasizing the high impact-cost ratio for energy-efficient biomass cookstoves.

Suggested Citation

  • Ankel-Peters, Jörg & Bensch, Gunther & Moull, Kevin & Rauschenbach, Mascha & Sievert, Maximiliane, 2024. "Cost-effectiveness of rural energy access strategies," Ruhr Economic Papers 1116, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:319070
    DOI: 10.4419/96973295
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    References listed on IDEAS

    as
    1. Peters, Jörg & Vance, Colin & Harsdorff, Marek, 2011. "Grid Extension in Rural Benin: Micro-Manufacturers and the Electrification Trap," World Development, Elsevier, vol. 39(5), pages 773-783, May.
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    3. Michael Grimm & Luciane Lenz & Jörg Peters & Maximiliane Sievert, 2020. "Demand for Off-Grid Solar Electricity: Experimental Evidence from Rwanda," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 7(3), pages 417-454.
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    5. Michael Grimm & Anicet Munyehirwe & Jörg Peters & Maximiliane Sievert, 2017. "A First Step up the Energy Ladder? Low Cost Solar Kits and Household’s Welfare in Rural Rwanda," The World Bank Economic Review, World Bank, vol. 31(3), pages 631-649.
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    8. 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.
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    More about this item

    Keywords

    Energy access; rural electrification; modern cooking energy; sub-Sahara Africa;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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