IDEAS home Printed from https://ideas.repec.org/p/zbw/rwirep/298848.html
   My bibliography  Save this paper

Behavioural constraints in energy technology uptake: Evidence from real-purchase offers in rural Rwanda and Senegal

Author

Listed:
  • Bensch, Gunther
  • Grimm, Michael

Abstract

Energy-efficient biomass cookstoves and small solar systems play a vital role in the transition to clean energy. Despite their affordability and scalability, their uptake remains low among households in sub-Saharan Africa. This paper examines the potential contribution of individual-specific behavioural factors to the under-adoption of these technologies. Drawing on data from real-purchase offers in rural Rwanda and Senegal, the analysis focuses on how the willingness to pay for the technologies varies with behavioural constraints including risk aversion, innovation resistance, time preferences, and beliefs. Our results confirm that these factors carry relevant variation that helps understanding the purchase decision process. These findings contribute to a better comprehension of consumer adoption behaviour of innovative consumer goods at the base of the pyramid, providing valuable insights for suppliers entering these markets and informing policy interventions aimed at facilitating households' transition to clean energy.

Suggested Citation

  • 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.
  • Handle: RePEc:zbw:rwirep:298848
    DOI: 10.4419/96973255
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/298848/1/1891264532.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.4419/96973255?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
    ---><---

    References listed on IDEAS

    as
    1. Marra, Michele & Pannell, David J. & Abadi Ghadim, Amir, 2003. "The economics of risk, uncertainty and learning in the adoption of new agricultural technologies: where are we on the learning curve?," Agricultural Systems, Elsevier, vol. 75(2-3), pages 215-234.
    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. Talevi, Marta & Pattanayak, Subhrendu K. & Das, Ipsita & Lewis, Jessica J. & Singha, Ashok K., 2022. "Speaking from experience: Preferences for cooking with biogas in rural India," Energy Economics, Elsevier, vol. 107(C).
    5. Laxman Narasimhan & Kannan Srinivasan & K. Sudhir, 2015. "Editorial —Marketing Science in Emerging Markets," Marketing Science, INFORMS, vol. 34(4), pages 473-479, July.
    6. Lusk Jayson L & Alexander Corinne & Rousu Matthew C., 2007. "Designing Experimental Auctions for Marketing Research: The Effect of Values, Distributions, and Mechanisms on Incentives for Truthful Bidding," Review of Marketing Science, De Gruyter, vol. 5(1), pages 1-32, October.
    7. Gregory, Robin & Lichtenstein, Sarah & Slovic, Paul, 1993. "Valuing Environmental Resources: A Constructive Approach," Journal of Risk and Uncertainty, Springer, vol. 7(2), pages 177-197, October.
    8. 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.
    9. Mekonnen, Alemu & Hassen, Sied & Jaime, Marcela & Toman, Michael & Zhang, Xiao-Bing, 2023. "The effect of information and subsidy on adoption of solar lanterns: An application of the BDM bidding mechanism in rural Ethiopia," Energy Economics, Elsevier, vol. 124(C).
    10. Bonan, Jacopo & Pareglio, Stefano & Tavoni, Massimo, 2017. "Access to modern energy: a review of barriers, drivers and impacts," Environment and Development Economics, Cambridge University Press, vol. 22(5), pages 491-516, October.
    11. Abhishek Kar & Theresa Tawiah & Linnea Graham & Georgette Owusu-Amankwah & Misbath Daouda & Flavio Malagutti & Steve Chillrud & Erin E. Harned & Seidu Iddrisu & Edward A. Apraku & Richard Tetteh & Sul, 2024. "Factors associated with the use of liquefied petroleum gas in Ghana vary at different stages of transition," Nature Energy, Nature, vol. 9(4), pages 434-445, April.
    12. Cameron, Trudy Ann & Huppert, Daniel D., 1989. "OLS versus ML estimation of non-market resource values with payment card interval data," Journal of Environmental Economics and Management, Elsevier, vol. 17(3), pages 230-246, November.
    13. Meriggi, Niccolò F. & Bulte, Erwin & Mobarak, Ahmed Mushfiq, 2021. "Subsidies for technology adoption: Experimental evidence from rural Cameroon," Journal of Development Economics, Elsevier, vol. 153(C).
    14. Esther Duflo & Michael Kremer & Jonathan Robinson, 2011. "Nudging Farmers to Use Fertilizer: Theory and Experimental Evidence from Kenya," American Economic Review, American Economic Association, vol. 101(6), pages 2350-2390, October.
    15. Semee Yoon & Johannes Urpelainen & Milind Kandlikar, 2016. "Willingness to Pay for Solar Lanterns: Does the Trial Period Play a Role?," Review of Policy Research, Policy Studies Organization, vol. 33(3), pages 291-315, May.
    16. Andrew D. Foster & Mark R. Rosenzweig, 2010. "Microeconomics of Technology Adoption," Annual Review of Economics, Annual Reviews, vol. 2(1), pages 395-424, September.
    17. David I Levine & Theresa Beltramo & Garrick Blalock & Carolyn Cotterman & Andrew M Simons, 2018. "What Impedes Efficient Adoption of Products? Evidence from Randomized Sales Offers for Fuel-Efficient Cookstoves in Uganda," Journal of the European Economic Association, European Economic Association, vol. 16(6), pages 1850-1880.
    18. Kenneth Lee & Edward Miguel & Catherine Wolfram, 2020. "Experimental Evidence on the Economics of Rural Electrification," Journal of Political Economy, University of Chicago Press, vol. 128(4), pages 1523-1565.
    19. 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.
    20. 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.
    21. Carrasco-Garcés, Moisés & Vásquez-Lavín, Felipe & Ponce Oliva, Roberto D. & Diaz Pincheira, Francisco & Barrientos, Manuel, 2021. "Estimating the implicit discount rate for new technology adoption of wood-burning stoves," Energy Policy, Elsevier, vol. 156(C).
    22. Arts, Joep W.C. & Frambach, Ruud T. & Bijmolt, Tammo H.A., 2011. "Generalizations on consumer innovation adoption: A meta-analysis on drivers of intention and behavior," International Journal of Research in Marketing, Elsevier, vol. 28(2), pages 134-144.
    23. Beltramo, Theresa & Blalock, Garrick & Levine, David I. & Simons, Andrew M., 2015. "The effect of marketing messages and payment over time on willingness to pay for fuel-efficient cookstoves," Journal of Economic Behavior & Organization, Elsevier, vol. 118(C), pages 333-345.
    24. 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).
    25. Jessica Cohen & Pascaline Dupas, 2010. "Free Distribution or Cost-Sharing? Evidence from a Randomized Malaria Prevention Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(1), pages 1-45.
    Full references (including those not matched with items on IDEAS)

    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. 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.
    2. 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.
    3. Nduka, Eleanya, 2021. "How to get rural households out of energy poverty in Nigeria: A contingent valuation," Energy Policy, Elsevier, vol. 149(C).
    4. Meriggi, Niccolò F. & Bulte, Erwin & Mobarak, Ahmed Mushfiq, 2021. "Subsidies for technology adoption: Experimental evidence from rural Cameroon," Journal of Development Economics, Elsevier, vol. 153(C).
    5. Bonan, Jacopo & Battiston, Pietro & Bleck, Jaimie & LeMay-Boucher, Philippe & Pareglio, Stefano & Sarr, Bassirou & Tavoni, Massimo, 2021. "Social interaction and technology adoption: Experimental evidence from improved cookstoves in Mali," World Development, Elsevier, vol. 144(C).
    6. Talevi, Marta & Pattanayak, Subhrendu K. & Das, Ipsita & Lewis, Jessica J. & Singha, Ashok K., 2022. "Speaking from experience: Preferences for cooking with biogas in rural India," Energy Economics, Elsevier, vol. 107(C).
    7. 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).
    8. Alem, Yonas & Hassen, Sied & Köhlin, Gunnar, 2023. "Decision-making within the household: The role of division of labor and differences in preferences," Journal of Economic Behavior & Organization, Elsevier, vol. 207(C), pages 511-528.
    9. Bensch, Gunther & Jeuland, Marc & Lenz, Luciane & Ndiaye, Ousmane, 2023. "A bridge to clean cooking? The cost-effectiveness of energy-efficient biomass stoves in rural Senegal," Ruhr Economic Papers 1057, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    10. Alem, Yonas & Hassen, Sied & Köhlin, Gunnar, 2018. "Decision-making within the Household: The Role of Autonomy and Differences in Preferences," Working Papers in Economics 724, University of Gothenburg, Department of Economics.
    11. Alem, Yonas & Ruhinduka, Remidius D., 2020. "Saving Africa's tropical forests through energy transition: A randomized controlled trial in Tanzania," Ruhr Economic Papers 885, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    12. d'Adda, Giovanna & Mahmud, Mahreen & Said, Farah & Bonan, Jacopo, 2020. "The Role of Flexibility and Planning in Repayment Discipline: Evidence from a Field Experiment on Pay-as-You-Go Off-Grid Electricity," RFF Working Paper Series 20-14, Resources for the Future.
    13. Grimm, Michael & Hartwig, Renate, 2018. "Unblurring the Market for Vision Correction: A Willingness to Pay Experiment in Rural Burkina Faso," IZA Discussion Papers 11929, Institute of Labor Economics (IZA).
    14. Jeuland, Marc & Tan Soo, Jie-Sheng & Shindell, Drew, 2018. "The need for policies to reduce the costs of cleaner cooking in low income settings: Implications from systematic analysis of costs and benefits," Energy Policy, Elsevier, vol. 121(C), pages 275-285.
    15. Ankel-Peters, Jörg & Schmidt, Christoph M., 2023. "Rural electrification, the credibility revolution, and the limits of evidence-based policy," Ruhr Economic Papers 1051, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    16. Shukla, Pallavi & Pullabhotla, Hemant K. & Baylis, Kathy, 2020. "Subsidizing Agricultural Technology Adoption: An Experimental and Behavioral Economics Approach," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304451, Agricultural and Applied Economics Association.
    17. Daniel Agness & Travis Baseler & Sylvain Chassang & Pascaline Dupas & Erik Snowberg, 2022. "Valuing the Time of the Self-Employed," Working Papers 2022-2, Princeton University. Economics Department..
    18. 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.
    19. Mekonnen, Alemu & Hassen, Sied & Jaime, Marcela & Toman, Michael & Zhang, Xiao-Bing, 2023. "The effect of information and subsidy on adoption of solar lanterns: An application of the BDM bidding mechanism in rural Ethiopia," Energy Economics, Elsevier, vol. 124(C).
    20. Astrid Mastenbroek & Irma Sirutyte & Robert Sparrow, 2021. "Information Barriers to Adoption of Agricultural Technologies: Willingness to Pay for Certified Seed of an Open Pollinated Maize Variety in Northern Uganda," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(1), pages 180-201, February.

    More about this item

    Keywords

    Base of the pyramid; energy transition; willingness to pay; household decision; behaviour;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:zbw:rwirep:298848. 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: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/rwiesde.html .

    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.