IDEAS home Printed from https://ideas.repec.org/a/pal/eurjdr/v30y2018i4d10.1057_s41287-017-0078-3.html
   My bibliography  Save this article

Liquidity Constraints and Willingness to Pay for Solar Lamps and Water Filters in Jakarta

Author

Listed:
  • Robert Lensink

    (University of Groningen
    Wageningen University)

  • Tom Raster

    (University of Groningen)

  • Angelique Timmer

    (Ivy)

Abstract

In this study, using the Becker–DeGroot–Marschak mechanism, we assess the Willingness to Pay for water filters and solar lamps in Indonesia. The study shows that credit constraints are important determinants of the low levels of WTP and low adoption rates of preventative health technologies. Providing women with an option to spread out the payments for these products over 50 weekly periods more than doubles the maximum WTP.

Suggested Citation

  • Robert Lensink & Tom Raster & Angelique Timmer, 2018. "Liquidity Constraints and Willingness to Pay for Solar Lamps and Water Filters in Jakarta," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(4), pages 577-587, September.
    • Handle: RePEc:pal:eurjdr:v:30:y:2018:i:4:d:10.1057_s41287-017-0078-3
    DOI: 10.1057/s41287-017-0078-3
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41287-017-0078-3
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/s41287-017-0078-3?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. Drew Fudenberg & David K. Levine & Zacharias Maniadis, 2012. "On the Robustness of Anchoring Effects in WTP and WTA Experiments," American Economic Journal: Microeconomics, American Economic Association, vol. 4(2), pages 131-145, May.
    2. James Berry & Greg Fischer & Raymond Guiteras, 2020. "Eliciting and Utilizing Willingness to Pay: Evidence from Field Trials in Northern Ghana," Journal of Political Economy, University of Chicago Press, vol. 128(4), pages 1436-1473.
    3. Michael Grimm & Anicet Munyehirwe & Jörg Peters & Maximiliane Sievert, 2017. "A First Step up the Energy Ladder? Low Cost Solar Kits and Household’s Welfare in Rural Rwanda," The World Bank Economic Review, World Bank, vol. 31(3), pages 631-649.
    4. Dan Ariely & George Loewenstein & Drazen Prelec, 2003. ""Coherent Arbitrariness": Stable Demand Curves Without Stable Preferences," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(1), pages 73-106.
    5. Klaus Peter Kaas & Heidrun Ruprecht, 2006. "Are the Vickrey Auction and the BDM Mechanism Really Incentive Compatible? - Empirical Results and Optimal Bidding Strategies in Cases of Uncertain Willingness-to-pay," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 58(1), pages 37-55, January.
    6. Chishio Furukawa, 2014. "Do Solar Lamps Help Children Study? Contrary Evidence from a Pilot Study in Uganda," Journal of Development Studies, Taylor & Francis Journals, vol. 50(2), pages 319-341, February.
    7. Bensch, Gunther & Grimm, Michael & Peters, Jörg, 2015. "Why do households forego high returns from technology adoption? Evidence from improved cooking stoves in Burkina Faso," Journal of Economic Behavior & Organization, Elsevier, vol. 116(C), pages 187-205.
    8. Horowitz, John K., 2006. "The Becker-DeGroot-Marschak mechanism is not necessarily incentive compatible, even for non-random goods," Economics Letters, Elsevier, vol. 93(1), pages 6-11, October.
    9. Pascaline Dupas, 2011. "Health Behavior in Developing Countries," Annual Review of Economics, Annual Reviews, vol. 3(1), pages 425-449, September.
    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. S. Satriani & Izana Saffana Ilma & D. Daniel, 2022. "Trends of Water, Sanitation, and Hygiene (WASH) Research in Indonesia: A Systematic Review," IJERPH, MDPI, vol. 19(3), pages 1-12, January.
    2. Wong, Jason Chun Yu & Blankenship, Brian & Harish, S.P. & Urpelainen, Johannes, 2022. "Increasing microsolar technology adoption: Efficacy of vouchers, cash transfers, and microfinance schemes," Energy Economics, Elsevier, vol. 110(C).

    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. Fischer, Greg & Karlan, Dean & McConnell, Margaret & Raffler, Pia, 2019. "Short-term subsidies and seller type: A health products experiment in Uganda," Journal of Development Economics, Elsevier, vol. 137(C), pages 110-124.
    2. Wong, Jason Chun Yu & Blankenship, Brian & Harish, S.P. & Urpelainen, Johannes, 2022. "Increasing microsolar technology adoption: Efficacy of vouchers, cash transfers, and microfinance schemes," Energy Economics, Elsevier, vol. 110(C).
    3. Michael Grimm & Luciane Lenz & Jörg Peters & Maximiliane Sievert, 2020. "Demand for Off-Grid Solar Electricity: Experimental Evidence from Rwanda," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 7(3), pages 417-454.
    4. Glimcher, Paul & Tymula, Agnieszka & Woelbert, Eva, 2013. "Flexible valuations for consumer goods as measured by the Becker-DeGroot-Marschak mechanism," Working Papers 2013-20, University of Sydney, School of Economics.
    5. Bensch, Gunther & Grimm, Michael, 2024. "Behavioural constraints in energy technology uptake: Evidence from real-purchase offers in rural Rwanda and Senegal," Ruhr Economic Papers 1081, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    6. Gunther Bensch & Jörg Peters, 2020. "One‐Off Subsidies and Long‐Run Adoption—Experimental Evidence on Improved Cooking Stoves in Senegal," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(1), pages 72-90, January.
    7. Nduka, Eleanya, 2021. "How to get rural households out of energy poverty in Nigeria: A contingent valuation," Energy Policy, Elsevier, vol. 149(C).
    8. Bensch, Gunther & Kluve, Jochen & Stöterau, Jonathan, 2021. "The market-based dissemination of energy-access technologies as a business model for rural entrepreneurs: Evidence from Kenya," Resource and Energy Economics, Elsevier, vol. 66(C).
    9. Hoffmann, Bridget, 2018. "Do non-monetary prices target the poor? Evidence from a field experiment in India," Journal of Development Economics, Elsevier, vol. 133(C), pages 15-32.
    10. Sugden, Robert & Zheng, Jiwei & Zizzo, Daniel John, 2013. "Not all anchors are created equal," Journal of Economic Psychology, Elsevier, vol. 39(C), pages 21-31.
    11. Oben K Bayrak & Bengt Kriström, 2016. "Is there a valuation gap? The case of interval valuations," Economics Bulletin, AccessEcon, vol. 36(1), pages 218-236.
    12. Bensch, Gunther & Grimm, Michael & Huppertz, Maximilian & Langbein, Jörg & Peters, Jörg, 2018. "Are promotion programs needed to establish off-grid solar energy markets? Evidence from rural Burkina Faso," Renewable and Sustainable Energy Reviews, Elsevier, vol. 90(C), pages 1060-1068.
    13. Li, Lunzheng & Maniadis, Zacharias & Sedikides, Constantine, 2021. "Anchoring in Economics: A Meta-Analysis of Studies on Willingness-To-Pay and Willingness-To-Accept," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 90(C).
    14. Alem, Yonas & Dugoua, Eugenie, 2022. "Learning from unincentivized and incentivized communication: a randomized controlled trial in India," LSE Research Online Documents on Economics 110858, London School of Economics and Political Science, LSE Library.
    15. Maurizio Canavari & Andreas C. Drichoutis & Jayson L. Lusk & Rodolfo M. Nayga, Jr., 2018. "How to run an experimental auction: A review of recent advances," Working Papers 2018-5, Agricultural University of Athens, Department Of Agricultural Economics.
    16. Bull, Charles & Courty, Pascal & Doyon, Maurice & Rondeau, Daniel, 2019. "Failure of the Becker–DeGroot–Marschak mechanism in inexperienced subjects: New tests of the game form misconception hypothesis," Journal of Economic Behavior & Organization, Elsevier, vol. 159(C), pages 235-253.
    17. Benjamin Enke & Uri Gneezy & Brian Hall & David Martin & Vadim Nelidov & Theo Offerman & Jeroen van de Ven, 2020. "Cognitive Biases: Mistakes or Missing Stakes?," CESifo Working Paper Series 8168, CESifo.
    18. Kenneth Lee & Edward Miguel & Catherine Wolfram, 2020. "Does Household Electrification Supercharge Economic Development?," Journal of Economic Perspectives, American Economic Association, vol. 34(1), pages 122-144, Winter.
    19. Drew Fudenberg & David K. Levine & Zacharias Maniadis, 2012. "On the Robustness of Anchoring Effects in WTP and WTA Experiments," American Economic Journal: Microeconomics, American Economic Association, vol. 4(2), pages 131-145, May.
    20. Greg Fischer & Dean Karlan & Margaret McConnell & Pia Raffler, 2014. "To Charge or Not to Charge: Evidence from a Health Products Experiment in Uganda," Working Papers 1041, Economic Growth Center, Yale University.

    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:pal:eurjdr:v:30:y:2018:i:4:d:10.1057_s41287-017-0078-3. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    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.