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2018-02-23 | project

The impact of pecuniary and non-pecuniary policy instruments on the adoption of renewable energy sources in rural Ethiopia

Using randomized field experiment method, this study will investigate the impact of pecuniary and non-pecuniary policy instruments on the uptake of solar panel for residential lighting in rural Ethiopia.

Renewable energy sources such as solar are an alternative to provide clean lighting for many rural households in developing countries. However, transition to these lighting sources is slow and policymakers are faced with the need to design and implement cost-effective policy instruments to promote the uptake and usage of such renewable energy sources. Non-pecuniary and pecuniary policy instruments have a role to promote households’ use of renewable lighting sources.  However, studies that make comparisons of pecuniary vs. non-pecuniary policy instruments are lacking. Studies examining the role of providing information on health and environmental benefits of renewable energy on adoption and use are also limited.

Hence, examining the impacts of price-related and non-price approaches can shed light on what best motivates households’ uptake of renewable lighting sources. This research has the objectives to:

The specific objectives of the proposed research are to:

  1. Examine the effectiveness of non-pecuniary policy instruments that promote cost-effective take up of renewable lighting sources in rural Ethiopia, in concert with pecuniary measures.
  2. Investigate the role of combinations of non-pecuniary and pecuniary policy instruments that can effectively promote take up of renewable energy sources for lighting in rural Ethiopia.