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Book
The Effect of Information and Subsidy Measures on Adoption of Solar Lanterns : An Application of the BDM Bidding Mechanism in Rural Ethiopia
Authors: --- --- ---
Year: 2021 Publisher: Washington, D.C. : The World Bank,

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Abstract

Solar lanterns are a relatively inexpensive renewable-energy option for household lighting in developing countries. However, the transition to these lighting sources is slow. To understand why, this study uses the Becker-Degroot-Marschak bidding mechanism in a randomized field experiment to investigate the effect of information provision and subsidy policy instruments on the uptake of solar lanterns. Subjects' willingness to pay tends to be low enough that most of them would purchase the solar lantern only if it is subsidized. Households with access to grid electricity have a lower willingness to pay and are less likely to adopt, while those using kerosene as a source of lighting are more likely to adopt. Access to credit also increases willingness to pay. Information treatments have limited impact: provision of different types of information about the private and public benefits of solar lantern use increases adoption only when it is combined with a high level of subsidies. Given the relatively low cost of solar lanterns, the results suggest that achieving universal electricity access under the United Nations' Sustainable Development Goals by any means will require subsidizing access.


Dissertation
What economic model for a sustainable and affordable domestic lighting in suburban and rural areas in the Democratic Republic of the Congo?
Authors: --- --- --- ---
Year: 2018 Publisher: Liège Université de Liège (ULiège)

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Abstract

Access to energy is a keystone for economic, political and social development. Despite its numerous resources, Africa lives a dramatic situation. In this African context, the Democratic Republic of Congo stands out in view of the seriousness of its circumstances: it is the least electrified country in the whole world! A paradox regarding the number of development opportunities Africa has. The project presented in this paper explores one of these opportunities and its application to a practical case, the community of Sindi, Boma’s suburb, in the Democratic Republic of Congo. No electrical grid exists in Sindi and most of the population uses oil lamps to light up at night. These are a curse, they are extremely expensive, inefficient and polluting. 
The project study presented in this thesis and the underlying economic model aim at supporting Sindi’s educational system by allowing school children to do their homework in decent health and working conditions. Targeting the school children and their families, the main objective of the project is to provide an alternative solution to oil lamps while allowing families to make savings. It seeks to empower the community and to respect the philosophy conveyed by the maxim: “Give a man a fish, and you feed him for a day. Teach a man to fish, and you feed him for a lifetime” (Chinese proverb).
To reach this objective, to maximize the chances of success and to insure the sustainability of the project, the study presents a cooperative governance model that is greatly inspired from the work of the 2009 Nobel prize in Economics, Elinor Ostrom, about the governance of the common goods. This study also tackles other aspects of the project like its management, the lamps and their suppliers, its financial aspects as well as a technical study. Each brings elements that will allow “Ingénieurs sans Frontières” to make informed choices and to complete the project successfully. 
The economic model consists in gathering an off-grid community around a shared objective, creating an association around this goal to manage the solar lamps and providing it with a resilient and lasting governance system. Through an external financial assistance, the association purchases solar lamps and resells them to the customers. The price of the lamps is made affordable thanks to multiple payments spread over a defined period. The association makes a profit which allows it to undertake other development projects for the community.

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