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Short-run subsidies, take-up, and long-run demand for off-grid solar for the poor: Evidence from large-scale randomized trials in Rwanda
More than a billion people lack access to modern electricity and instead rely on kerosene and other dirty lighting sources, grid expansion is not expected to keep pace with population growth, and both contribute to climate change. Moreover, pneumonia is the leading cause of death for under-fives in...
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| Format: | Thesis |
| Language: | English |
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School of Economics
2020
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| _version_ | 1867613236047642624 |
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| access_status_str | Open Access |
| author | Clarke, Rowan Philip |
| author2 | Visser, Martine |
| author_browse | Clarke, Rowan Philip Visser, Martine |
| author_facet | Visser, Martine Clarke, Rowan Philip |
| author_sort | Clarke, Rowan Philip |
| collection | Thesis |
| description | More than a billion people lack access to modern electricity and instead rely on kerosene and other dirty lighting sources, grid expansion is not expected to keep pace with population growth, and both contribute to climate change. Moreover, pneumonia is the leading cause of death for under-fives in the world and kerosene smoke is a significant risk factor. For-profit distribution of low-cost solar LEDs has been touted as an answer, but adoption remains low, especially by the poorest. This study estimates demand curves for both the initial price of low-cost solar LEDs as well as the subsequent user fee for repeated purchases, while also estimating the impact of shortrun subsidies, or a free trial period, on long-run demand. We find uptake is highly sensitive to price with most households purchasing at zero price and none at full cost. Furthermore, using unique objective big data on long-term usage we show that households that received lights for free use their lights as much as those that paid a positive price, disproving the notion, in this context, that consumers will not use goods they received for free. Finally, we find short-term subsidies for user fees actually increases long-term demand in the context of repeated purchases. |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/31195 |
| institution | University of Cape Town (South Africa) |
| language | eng |
| last_indexed | 2026-06-10T12:32:56.154Z |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2020 |
| publishDateRange | 2020 |
| publishDateSort | 2020 |
| publisher | School of Economics |
| publisherStr | School of Economics |
| record_format | dspace |
| source_str | UCTD — University of Cape Town Open Access Repository |
| spelling | oai:open.uct.ac.za:11427/31195 Short-run subsidies, take-up, and long-run demand for off-grid solar for the poor: Evidence from large-scale randomized trials in Rwanda Clarke, Rowan Philip Visser, Martine subsidies health pricing learning energy information frictions behavioral economics More than a billion people lack access to modern electricity and instead rely on kerosene and other dirty lighting sources, grid expansion is not expected to keep pace with population growth, and both contribute to climate change. Moreover, pneumonia is the leading cause of death for under-fives in the world and kerosene smoke is a significant risk factor. For-profit distribution of low-cost solar LEDs has been touted as an answer, but adoption remains low, especially by the poorest. This study estimates demand curves for both the initial price of low-cost solar LEDs as well as the subsequent user fee for repeated purchases, while also estimating the impact of shortrun subsidies, or a free trial period, on long-run demand. We find uptake is highly sensitive to price with most households purchasing at zero price and none at full cost. Furthermore, using unique objective big data on long-term usage we show that households that received lights for free use their lights as much as those that paid a positive price, disproving the notion, in this context, that consumers will not use goods they received for free. Finally, we find short-term subsidies for user fees actually increases long-term demand in the context of repeated purchases. 2020-02-20T10:10:00Z 2020-02-20T10:10:00Z 2019 2020-02-20T09:21:49Z Master Thesis Masters MCom http://hdl.handle.net/11427/31195 eng application/pdf School of Economics Faculty of Commerce |
| spellingShingle | subsidies health pricing learning energy information frictions behavioral economics Clarke, Rowan Philip Short-run subsidies, take-up, and long-run demand for off-grid solar for the poor: Evidence from large-scale randomized trials in Rwanda |
| thesis_degree_str | Master's |
| title | Short-run subsidies, take-up, and long-run demand for off-grid solar for the poor: Evidence from large-scale randomized trials in Rwanda |
| title_full | Short-run subsidies, take-up, and long-run demand for off-grid solar for the poor: Evidence from large-scale randomized trials in Rwanda |
| title_fullStr | Short-run subsidies, take-up, and long-run demand for off-grid solar for the poor: Evidence from large-scale randomized trials in Rwanda |
| title_full_unstemmed | Short-run subsidies, take-up, and long-run demand for off-grid solar for the poor: Evidence from large-scale randomized trials in Rwanda |
| title_short | Short-run subsidies, take-up, and long-run demand for off-grid solar for the poor: Evidence from large-scale randomized trials in Rwanda |
| title_sort | short run subsidies take up and long run demand for off grid solar for the poor evidence from large scale randomized trials in rwanda |
| topic | subsidies health pricing learning energy information frictions behavioral economics |
| url | http://hdl.handle.net/11427/31195 |
| work_keys_str_mv | AT clarkerowanphilip shortrunsubsidiestakeupandlongrundemandforoffgridsolarforthepoorevidencefromlargescalerandomizedtrialsinrwanda |