IDEAS home Printed from https://ideas.repec.org/a/cup/endeec/v28y2023i4p387-408_5.html
   My bibliography  Save this article

Reducing carbon footprint by replacing generators with solar PV systems: a contingent valuation study in Lagos, Nigeria

Author

Listed:
  • Nduka, Eleanya

Abstract

Nigeria is endowed with abundant sunshine year-round; thus, solar PV would solve the environmental problems associated with petrol-powered generators. However, it is unclear whether households are willing to transition. Thus, we analyze households’ willingness to pay (WTP) for solar PV under four scenarios: (i) WTP when a solar PV is complemented with a generator, (ii) WTP when a solar PV completely displaces a generator, (iii) WTP when a solar PV is complemented with a generator, plus a subsidy, and (iv) WTP when a solar PV completely displaces a generator, given a subsidy. We find that WTP for solar PV is higher when it can displace generators completely. Subsidy plus monthly rather than upfront payment would scale up the adoption of solar PV by about 6 per cent. Furthermore, the cost benefit analysis results show that solar PV investment is profitable. Thus, there is a need to implement policies aimed at scaling up the energy transition.

Suggested Citation

  • Nduka, Eleanya, 2023. "Reducing carbon footprint by replacing generators with solar PV systems: a contingent valuation study in Lagos, Nigeria," Environment and Development Economics, Cambridge University Press, vol. 28(4), pages 387-408, August.
    • Handle: RePEc:cup:endeec:v:28:y:2023:i:4:p:387-408_5
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S1355770X22000316/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pouya Janghorban & Temilade Sesan & Muhammad-Kabir Salihu & Olayinka Ohunakin & Narges Chinichian, 2024. "Willingness to Pay for an Electricity Connection: A Choice Experiment Among Rural Households and Enterprises in Nigeria," Papers 2407.15757, arXiv.org.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:endeec:v:28:y:2023:i:4:p:387-408_5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/ede .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.