Subsidies, Information, and Energy-Efficient Cookstove Adoption – a Natural Field Experiment in Rural Ethiopia
SSRN, ISSN: 1556-5068
2024
- 148Usage
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Example: if you select the 1-year option for an article published in 2019 and a metric category shows 90%, that means that the article or review is performing better than 90% of the other articles/reviews published in that journal in 2019. If you select the 3-year option for the same article published in 2019 and the metric category shows 90%, that means that the article or review is performing better than 90% of the other articles/reviews published in that journal in 2019, 2018 and 2017.
Citation Benchmarking is provided by Scopus and SciVal and is different from the metrics context provided by PlumX Metrics.
Article Description
Energy-efficient biomass cookstoves (EEBC) are an important technology for the three billion people relying on biomass 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 of stove adoption. We evaluate a pilot program that randomized different subsidy schemes (40%, 70%, and 100% subsidy) and information treatments across 292 Ethiopian villages. Unlike several previous willingness-to-pay studies we examine a take-it-or-leave-it approach in a 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 about stove benefits households received. Uptake increases considerably for households who received a high subsidy (70% or 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 fosters adoption considerably.
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