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Solar off-grid markets in Africa: Recent dynamics and the role of branded products

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  • Grimm, Michael
  • Peters, Jörg

Abstract

Solar off -grid technologies have become a lower-cost alternative to grid-based electrification in rural Africa. As a contribution to the United Nations' electricity for all goals, policy currently promotes branded solar products based on the assumption that high-quality standards are necessary. We provide evidence suggesting that nonbranded technologies have already made widespread inroads to rural households. Quality is not necessarily worse, in particular if the considerably lower end-user prices are accounted for. A justification of branded solar promotion programs can thus not only be based on energy access arguments, but rather on environmental concerns related to electronic waste. Moreover, we show that if poorer strata are to be reached, end-user subsidies are required.

Suggested Citation

  • 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.
    • Handle: RePEc:zbw:rwirep:619
    DOI: 10.4419/86788721
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    References listed on IDEAS

    as
    1. 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.
    2. Jörg Peters & Maximiliane Sievert, 2016. "Impacts of rural electrification revisited – the African context," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 8(3), pages 327-345, July.
    3. repec:zbw:rwirep:0554 is not listed on IDEAS
    4. Bensch, Gunther & Peters, Jörg & Sievert, Maximiliane, 2015. "The lighting transition in Africa: From kerosene to LED and the emerging dry-cell battery problem," Ruhr Economic Papers 579, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
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    Cited by:

    1. Bensch, Gunther & Grimm, Michael & Huppertz, Maximilian & Langbein, Jörg & Peters, Jörg, 2018. "Are promotion programs needed to establish off-grid solar energy markets? Evidence from rural Burkina Faso," Renewable and Sustainable Energy Reviews, Elsevier, vol. 90(C), pages 1060-1068.
    2. 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.
    3. Paul G. Munro & Shanil Samarakoon & Ulrich E. Hansen & Matthew Kearnes & Anna Bruce & Jamie Cross & Sarah Walker & Collen Zalengera, 2023. "Towards a repair research agenda for off-grid solar e-waste in the Global South," Nature Energy, Nature, vol. 8(2), pages 123-128, February.
    4. Wong, Jason Chun Yu & Blankenship, Brian & Harish, S.P. & Urpelainen, Johannes, 2022. "Increasing microsolar technology adoption: Efficacy of vouchers, cash transfers, and microfinance schemes," Energy Economics, Elsevier, vol. 110(C).
    5. World Bank Group, "undated". "Africa's Pulse, No. 17, April 2018," World Bank Publications - Reports 29667, The World Bank Group.

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    More about this item

    Keywords

    rural electrification; energy access; energy poverty; technology adoption;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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