Results-Based Financing to Promote Clean Stoves : Initial Lessons from Pilots in China and Indonesia

Past market failures to deliver clean cooking and heating solutions, especially to low-income households, suggest the continued need for subsidies if universal access is to be achieved. To succeed, however, subsidies must be well-targeted, have low...

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Bibliographic Details
Main Authors: Zhang, Yabei, Adams, Norma
Format: Brief
Language:English
en_US
Published: World Bank, Washington, DC 2015
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2015/06/24730706/results-based-financing-promote-clean-stoves-initial-lessons-pilots-china-indonesia
http://hdl.handle.net/10986/22114
Description
Summary:Past market failures to deliver clean cooking and heating solutions, especially to low-income households, suggest the continued need for subsidies if universal access is to be achieved. To succeed, however, subsidies must be well-targeted, have low potential for “leakage,” and be calibrated to avoid destroying commercial incentives and discipline. Results-based financing, which disburses public resources against demonstrated results, can be used to mobilizeand sustain private-sector participation in scaling up access to clean stoves. Pilots implementing this approach under the World Banks Clean Stove Initiative show promising results.