IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v117y2018icp127-135.html
   My bibliography  Save this article

Finance and the improved cookstove sector in East Africa; Barriers and opportunities for value-chain actors

Author

Listed:
  • Hewitt, Joseph
  • Ray, Charlotte
  • Jewitt, Sarah
  • Clifford, Mike

Abstract

Despite a long history of diverse approaches designed to increase the adoption of improved cookstoves (ICS), multiple barriers continue to exist which stunt their uptake in many developing countries. This paper focuses specifically on the financial barriers facing actors within the ICS value chain, such as manufacturers, suppliers and distributors. Examining data from interviews with twenty-nine ICS enterprises in Kenya and Uganda, this paper finds that limited access to credit services is a substantial barrier to increasing the capacity of businesses within the ICS value chain. In addition, data from twenty-seven financial providers including banks, microfinance institutions and savings and credit co-operatives (SACCOs) viewed the ICS market as relatively underserved and believed greater integration could be mutually beneficial. This paper explores the way in which this relationship plays out in current market conditions and how connections between the two sectors can be strengthened, with the objective of overcoming these financial challenges and expanding the capacity of ICS businesses as a mechanism to facilitate ICS uptake by local populations.

Suggested Citation

  • Hewitt, Joseph & Ray, Charlotte & Jewitt, Sarah & Clifford, Mike, 2018. "Finance and the improved cookstove sector in East Africa; Barriers and opportunities for value-chain actors," Energy Policy, Elsevier, vol. 117(C), pages 127-135.
    • Handle: RePEc:eee:enepol:v:117:y:2018:i:c:p:127-135
    DOI: 10.1016/j.enpol.2018.02.044
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421518301216
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2018.02.044?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Shilpa Aggarwal & Leora Klapper & Dorothe Singer, 2013. "Financing Businesses in Africa: The Role of Microfinance," Palgrave Macmillan Books, in: Jean-Pierre Gueyie & Ronny Manos & Jacob Yaron (ed.), Microfinance in Developing Countries, chapter 9, pages 178-198, Palgrave Macmillan.
    2. Tigabu, Aschalew & Berkhout, Frans & van Beukering, Pieter, 2017. "Development aid and the diffusion of technology: Improved cookstoves in Kenya and Rwanda," Energy Policy, Elsevier, vol. 102(C), pages 593-601.
    3. Grieshop, Andrew P. & Marshall, Julian D. & Kandlikar, Milind, 2011. "Health and climate benefits of cookstove replacement options," Energy Policy, Elsevier, vol. 39(12), pages 7530-7542.
    4. Jan, Inayatullah, 2012. "What makes people adopt improved cookstoves? Empirical evidence from rural northwest Pakistan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(5), pages 3200-3205.
    5. Levine, David I. & Cotterman, Carolyn, 2012. "What Impedes Efficient Adoption of Products? Evidence from Randomized Variation in Sales Offers for Improved Cookstoves in Uganda," Institute for Research on Labor and Employment, Working Paper Series qt7qk8m53w, Institute of Industrial Relations, UC Berkeley.
    6. Shahidur R. Khandker, 2005. "Microfinance and Poverty: Evidence Using Panel Data from Bangladesh," The World Bank Economic Review, World Bank, vol. 19(2), pages 263-286.
    7. Temilade Sesan, 2014. "Global imperatives, local contingencies: An analysis of divergent priorities and dominant perspectives in stove development from the 1970s to date," Progress in Development Studies, , vol. 14(1), pages 3-20, January.
    8. Gujba, Haruna & Thorne, Steve & Mulugetta, Yacob & Rai, Kavita & Sokona, Youba, 2012. "Financing low carbon energy access in Africa," Energy Policy, Elsevier, vol. 47(S1), pages 71-78.
    9. Rao, P. Sharath Chandra & Miller, Jeffrey B. & Wang, Young Doo & Byrne, John B., 2009. "Energy-microfinance intervention for below poverty line households in India," Energy Policy, Elsevier, vol. 37(5), pages 1694-1712, May.
    10. Marc A Jeuland & Subhrendu K Pattanayak, 2012. "Benefits and Costs of Improved Cookstoves: Assessing the Implications of Variability in Health, Forest and Climate Impacts," PLOS ONE, Public Library of Science, vol. 7(2), pages 1-15, February.
    11. Bailis, Rob & Cowan, Amanda & Berrueta, Victor & Masera, Omar, 2009. "Arresting the Killer in the Kitchen: The Promises and Pitfalls of Commercializing Improved Cookstoves," World Development, Elsevier, vol. 37(10), pages 1694-1705, October.
    12. Susan Johnson & Max Nino-Zarazua, 2011. "Financial Access and Exclusion in Kenya and Uganda," Journal of Development Studies, Taylor & Francis Journals, vol. 47(3), pages 475-496.
    13. Alex Winter-Nelson & Anna A. Temu, 2005. "Liquidity constraints, access to credit and pro-poor growth in rural Tanzania," Journal of International Development, John Wiley & Sons, Ltd., vol. 17(7), pages 867-882.
    14. Michael Chibba, 2009. "Financial Inclusion, Poverty Reduction and the Millennium Development Goals," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 21(2), pages 213-230, April.
    15. Shrimali, Gireesh & Slaski, Xander & Thurber, Mark C. & Zerriffi, Hisham, 2011. "Improved stoves in India: A study of sustainable business models," Energy Policy, Elsevier, vol. 39(12), pages 7543-7556.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Shari, Babajide Epe & Dioha, Michael O. & Abraham-Dukuma, Magnus C. & Sobanke, Victor O. & Emodi, Nnaemeka V., 2022. "Clean cooking energy transition in Nigeria: Policy implications for Developing countries," Journal of Policy Modeling, Elsevier, vol. 44(2), pages 319-343.
    2. Vania Vigolo & Rezarta Sallaku & Federico Testa, 2018. "Drivers and Barriers to Clean Cooking: A Systematic Literature Review from a Consumer Behavior Perspective," Sustainability, MDPI, vol. 10(11), pages 1-21, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Niklas Vahlne & Erik O. Ahlgren, 2014. "Energy Efficiency at the Base of the Pyramid: A System-Based Market Model for Improved Cooking Stove Adoption," Sustainability, MDPI, vol. 6(12), pages 1-21, November.
    2. Malla, Sunil & Timilsina, Govinda R, 2014. "Household cooking fuel choice and adoption of improved cookstoves in developing countries : a review," Policy Research Working Paper Series 6903, The World Bank.
    3. Bielecki, Christopher & Wingenbach, Gary, 2014. "Rethinking improved cookstove diffusion programs: A case study of social perceptions and cooking choices in rural Guatemala," Energy Policy, Elsevier, vol. 66(C), pages 350-358.
    4. Kshirsagar, Milind P. & Kalamkar, Vilas R., 2014. "A comprehensive review on biomass cookstoves and a systematic approach for modern cookstove design," Renewable and Sustainable Energy Reviews, Elsevier, vol. 30(C), pages 580-603.
    5. Hirmer, Stephanie & Cruickshank, Heather, 2014. "Making the deployment of pico-PV more sustainable along the value chain," Renewable and Sustainable Energy Reviews, Elsevier, vol. 30(C), pages 401-411.
    6. Khandelwal, Meena & Hill, Matthew E. & Greenough, Paul & Anthony, Jerry & Quill, Misha & Linderman, Marc & Udaykumar, H.S., 2017. "Why Have Improved Cook-Stove Initiatives in India Failed?," World Development, Elsevier, vol. 92(C), pages 13-27.
    7. Atteridge, Aaron & Weitz, Nina, 2017. "A political economy perspective on technology innovation in the Kenyan clean cookstove sector," Energy Policy, Elsevier, vol. 110(C), pages 303-312.
    8. Temilade Sesan, 2014. "Global imperatives, local contingencies: An analysis of divergent priorities and dominant perspectives in stove development from the 1970s to date," Progress in Development Studies, , vol. 14(1), pages 3-20, January.
    9. Urpelainen, Johannes & Yoon, Semee, 2017. "Can product demonstrations create markets for sustainable energy technology? A randomized controlled trial in rural India," Energy Policy, Elsevier, vol. 109(C), pages 666-675.
    10. Vahlne, Niklas & Ahlgren, Erik O., 2014. "Policy implications for improved cook stove programs—A case study of the importance of village fuel use variations," Energy Policy, Elsevier, vol. 66(C), pages 484-495.
    11. MacCarty, Nordica A. & Bryden, Kenneth Mark, 2016. "An integrated systems model for energy services in rural developing communities," Energy, Elsevier, vol. 113(C), pages 536-557.
    12. Stephanie L. Martin & Jennifer K. Arney & Lisa M. Mueller & Edward Kumakech & Fiona Walugembe & Emmanuel Mugisha, 2013. "Using Formative Research to Design a Behavior Change Strategy to Increase the Use of Improved Cookstoves in Peri-Urban Kampala, Uganda," IJERPH, MDPI, vol. 10(12), pages 1-19, December.
    13. Thapa, Samir & Morrison, Mark & Parton, Kevin A, 2021. "Willingness to pay for domestic biogas plants and distributing carbon revenues to influence their purchase: A case study in Nepal," Energy Policy, Elsevier, vol. 158(C).
    14. Syrus M Islam, 2022. "Social impact scaling strategies in social enterprises: A systematic review and research agenda," Australian Journal of Management, Australian School of Business, vol. 47(2), pages 298-321, May.
    15. MacCarty, Nordica A. & Bryden, Kenneth Mark, 2017. "Costs and impacts of potential energy strategies for rural households in developing communities," Energy, Elsevier, vol. 138(C), pages 1157-1174.
    16. Iddrisu, Abdul Malik & Danquah, Michael, 2024. "The financial inclusion agenda: Examining the role of conventional banks in deepening access to formal credit," Economic Systems, Elsevier, vol. 48(2).
    17. Jagger, Pamela & Shively, Gerald, 2014. "Land use change, fuel use and respiratory health in Uganda," Energy Policy, Elsevier, vol. 67(C), pages 713-726.
    18. Bazira Bigawa Abel, 2020. "Financial Inclusion in Burundi: The Use of Microfinance Services in Semi-Urban Areas," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 45(3), pages 101-116, September.
    19. Jeuland, M.A. & Bhojvaid, V. & Kar, A. & Lewis, J.J. & Patange, O. & Pattanayak, S.K. & Ramanathan, N. & Rehman, I.H. & Tan Soo, J.S. & Ramanathan, V., 2015. "Preferences for improved cook stoves: Evidence from rural villages in north India," Energy Economics, Elsevier, vol. 52(PB), pages 287-298.
    20. Marybeth-Rouse & Bernardo Batiz-Lazo & Santiago Carbo-Valverde, 2023. "Financial inclusion in South Africa - Influencing factors and public policy," Papers 23001, Working Papers of Business and Economics School. Anahuac University (Mexico)..

    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:eee:enepol:v:117:y:2018:i:c:p:127-135. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    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.