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2015-12-01 | project

Credit Pay Back Behavior and LPG Stove Use: Evidence from a Randomized Controlled Trial in Tanzania

Recent literature on constraints to adoption of clean cookstoves points out liquidity and access to credit as the key factors explaining the low adoption rate of modern cooking appli-ances in developing countries .

In an earlier project, we used a randomized controlled trial to distribute LPG stoves on credit and subsidy in urban Tanzania to measure their impact on charcoal consumption. Randomly selected households were given access to the stoves either on credit or on subsidy. The credit treatment included a repayment schedule on daily, weekly and monthly basis. In the current project, we use our RCT design to highlight on which types of credit schemes are e effective in promoting repayment of LPG loans and in ensuring long-term ownership of LPG stoves