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Welfare impacts of an entry-level solar home system in Uganda

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  • Amy Z. Chen
  • Jeremy Fischer
  • Andrew Fraker
  • Neil Buddy Shah
  • Stuart Shirrell
  • Daniel Stein

Abstract

Home solar systems have the promise of bringing great welfare benefits to poor households without access to the electricity grid. We study the welfare impacts brought by the purchase of a popular home solar system in Uganda, d.light’s D20g, and estimate impacts using prospective individual-level matching. We find substantial impacts on energy spending, with treatment households saving approximately 1.40 USD/week, which corresponds to 77 per cent of the comparison group’s weekly energy expenditure. Assuming this savings stays constant, households will break even on their initial purchase after 3.14 years, and accrue net energy savings of 134 USD over the 5-year expected lifetime of the D20g. We also find improved self-reported health and safety outcomes, as treatment households reported fewer lower incidence of coughing (9 percentage points). They also report a nearly complete elimination of fires and burns from lighting sources, compared to around 10 per cent of households reporting such incidents in the comparison group. We do not find impact on productive time use such as studying or working.

Suggested Citation

  • Amy Z. Chen & Jeremy Fischer & Andrew Fraker & Neil Buddy Shah & Stuart Shirrell & Daniel Stein, 2017. "Welfare impacts of an entry-level solar home system in Uganda," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 9(2), pages 277-294, April.
    • Handle: RePEc:taf:jdevef:v:9:y:2017:i:2:p:277-294
    DOI: 10.1080/19439342.2017.1307248
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    References listed on IDEAS

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    1. 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.
    2. Roy, Joyashree, 2000. "The rebound effect: some empirical evidence from India," Energy Policy, Elsevier, vol. 28(6-7), pages 433-438, June.
    3. Morris, Stephen, 2006. "Body mass index and occupational attainment," Journal of Health Economics, Elsevier, vol. 25(2), pages 347-364, March.
    4. Eggers, Andrew C. & Hainmueller, Jens, 2009. "MPs for Sale? Returns to Office in Postwar British Politics," American Political Science Review, Cambridge University Press, vol. 103(4), pages 513-533, November.
    5. McKenzie, David, 2012. "Beyond baseline and follow-up: The case for more T in experiments," Journal of Development Economics, Elsevier, vol. 99(2), pages 210-221.
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    Cited by:

    1. Nathanael Ojong, 2022. "Fostering Human Wellbeing in Africa through Solar Home Systems: A Systematic and a Critical Review," Sustainability, MDPI, vol. 14(14), pages 1-15, July.
    2. Oluwapelumi Osibona & Bethlehem D. Solomon & Daniela Fecht, 2021. "Lighting in the Home and Health: A Systematic Review," IJERPH, MDPI, vol. 18(2), pages 1-20, January.
    3. Abdul-Salam, Yakubu & Phimister, Euan, 2019. "Modelling the impact of market imperfections on farm household investment in stand-alone solar PV systems," World Development, Elsevier, vol. 116(C), pages 66-76.

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