Willingness to Pay for Electricity Access in Extreme Poverty : Evidence from Sub-Saharan Africa
Improving electricity access in low-income countries is a challenging problem because of the high costs of grid extension and low demand for grid electricity in rural areas. This study elucidates these constraints by analyzing poor households'...
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| Format: | Working Paper |
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/968291561033778961/Willingness-to-Pay-for-Electricity-Access-in-Extreme-Poverty-Evidence-from-Sub-Saharan-Africa http://hdl.handle.net/10986/31925 |
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okr-10986-319252022-09-20T00:14:16Z Willingness to Pay for Electricity Access in Extreme Poverty : Evidence from Sub-Saharan Africa Sievert, Maximiliane Steinbuks, Jevgenijs ELECTRICITY ACCESS TO ENERGY ELECTRICITY ACCESS EXTREME POVERTY CONTINGENT VALUATION ELECTRICITY GRID RURAL ELECTRIFICATION SERVICE DELIVERY HOUSEHOLD WELFARE SOLAR ENERGY Improving electricity access in low-income countries is a challenging problem because of the high costs of grid extension and low demand for grid electricity in rural areas. This study elucidates these constraints by analyzing poor households' willingness-to-pay for different types of electricity access, including lower cost off-grid technologies. The theoretical model illustrates how consumer preferences, operational and capital costs of electricity service delivery, and availability of power supply affect households' decisions to acquire electricity technology. These effects are then assessed empirically by estimating beneficiaries' willingness-to-pay for electricity in three low-income countries that have pockets of households living in extreme poverty -- Burkina Faso, Senegal, and Rwanda. Consistent with the theoretical model, the results indicate very low household willingness-to-pay for electricity access, and that willingness-to-pay diminishes as households' income declines. Therefore, the study recommends concentrating in the nearer term on ultra-low-cost decentralized off-grid solar technologies in programs to provide household electricity to the poor in rural areas. 2019-06-20T16:36:50Z 2019-06-20T16:36:50Z 2019-06 Working Paper http://documents.worldbank.org/curated/en/968291561033778961/Willingness-to-Pay-for-Electricity-Access-in-Extreme-Poverty-Evidence-from-Sub-Saharan-Africa http://hdl.handle.net/10986/31925 English Policy Research Working Paper;No. 8906 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Burkina Faso Rwanda Senegal |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ELECTRICITY ACCESS TO ENERGY ELECTRICITY ACCESS EXTREME POVERTY CONTINGENT VALUATION ELECTRICITY GRID RURAL ELECTRIFICATION SERVICE DELIVERY HOUSEHOLD WELFARE SOLAR ENERGY |
| spellingShingle |
ELECTRICITY ACCESS TO ENERGY ELECTRICITY ACCESS EXTREME POVERTY CONTINGENT VALUATION ELECTRICITY GRID RURAL ELECTRIFICATION SERVICE DELIVERY HOUSEHOLD WELFARE SOLAR ENERGY Sievert, Maximiliane Steinbuks, Jevgenijs Willingness to Pay for Electricity Access in Extreme Poverty : Evidence from Sub-Saharan Africa |
| geographic_facet |
Africa Burkina Faso Rwanda Senegal |
| relation |
Policy Research Working Paper;No. 8906 |
| description |
Improving electricity access in
low-income countries is a challenging problem because of the
high costs of grid extension and low demand for grid
electricity in rural areas. This study elucidates these
constraints by analyzing poor households'
willingness-to-pay for different types of electricity
access, including lower cost off-grid technologies. The
theoretical model illustrates how consumer preferences,
operational and capital costs of electricity service
delivery, and availability of power supply affect
households' decisions to acquire electricity
technology. These effects are then assessed empirically by
estimating beneficiaries' willingness-to-pay for
electricity in three low-income countries that have pockets
of households living in extreme poverty -- Burkina Faso,
Senegal, and Rwanda. Consistent with the theoretical model,
the results indicate very low household willingness-to-pay
for electricity access, and that willingness-to-pay
diminishes as households' income declines. Therefore,
the study recommends concentrating in the nearer term on
ultra-low-cost decentralized off-grid solar technologies in
programs to provide household electricity to the poor in
rural areas. |
| format |
Working Paper |
| author |
Sievert, Maximiliane Steinbuks, Jevgenijs |
| author_facet |
Sievert, Maximiliane Steinbuks, Jevgenijs |
| author_sort |
Sievert, Maximiliane |
| title |
Willingness to Pay for Electricity Access in Extreme Poverty : Evidence from Sub-Saharan Africa |
| title_short |
Willingness to Pay for Electricity Access in Extreme Poverty : Evidence from Sub-Saharan Africa |
| title_full |
Willingness to Pay for Electricity Access in Extreme Poverty : Evidence from Sub-Saharan Africa |
| title_fullStr |
Willingness to Pay for Electricity Access in Extreme Poverty : Evidence from Sub-Saharan Africa |
| title_full_unstemmed |
Willingness to Pay for Electricity Access in Extreme Poverty : Evidence from Sub-Saharan Africa |
| title_sort |
willingness to pay for electricity access in extreme poverty : evidence from sub-saharan africa |
| publisher |
World Bank, Washington, DC |
| publishDate |
2019 |
| url |
http://documents.worldbank.org/curated/en/968291561033778961/Willingness-to-Pay-for-Electricity-Access-in-Extreme-Poverty-Evidence-from-Sub-Saharan-Africa http://hdl.handle.net/10986/31925 |
| _version_ |
1764475380277706752 |