Energy-Saving Effects of Progressive Pricing and Free CFL Bulb Distribution Program : Evidence from Ethiopia

In Africa, about 70 percent of the total population still lives without electricity. Significant resources are needed to meet the gap. Demand-side management is crucial to curb the increasing demand even in developing countries. A traditional approach is to raise prices, but promoting energy-efficie...

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Main Authors:	Iimi, Atsushi, Elahi, Raihan, Kitchlu, Rahul, Costolanski, Peter
Format:	Journal Article
Published:	Published by Oxford University Press on behalf of the World Bank 2020
Subjects:	ENERGY EFFICIENCY FIXED-EFFECT QUANTILE REGRESSION ELECTRICITY CFL ELECTRIC BULB COMPACT FLUORESCENT LAMP
Online Access:	http://hdl.handle.net/10986/34873

id	okr-10986-34873
recordtype	oai_dc
spelling	okr-10986-348732021-04-23T14:02:10Z Energy-Saving Effects of Progressive Pricing and Free CFL Bulb Distribution Program : Evidence from Ethiopia Iimi, Atsushi Elahi, Raihan Kitchlu, Rahul Costolanski, Peter ENERGY EFFICIENCY FIXED-EFFECT QUANTILE REGRESSION ELECTRICITY CFL ELECTRIC BULB COMPACT FLUORESCENT LAMP In Africa, about 70 percent of the total population still lives without electricity. Significant resources are needed to meet the gap. Demand-side management is crucial to curb the increasing demand even in developing countries. A traditional approach is to raise prices, but promoting energy-efficient products such as compact fluorescent lamp (CFL) bulbs is also a win-win proposition. While end-users can reduce their spending, power utilities can avoid costly investments in new generation capacity. This paper estimates the effects of progressive pricing as well as CFL distribution program in Ethiopia. It is found that the increasing block tariff structure reduced the demand: the price elasticity is estimated at 0.29. This is particularly useful to influence large-volume users, who are presumably the rich. The CFL program is also found effective to contain the electricity demand. The estimated impact is about 45 kWh per customer. This is significant energy savings particularly for low-volume users. 2020-12-04T19:27:51Z 2020-12-04T19:27:51Z 2019-06 Journal Article World Bank Economic Review 1564-698X http://hdl.handle.net/10986/34873 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Published by Oxford University Press on behalf of the World Bank Publications & Research :: Journal Article Publications & Research Africa Africa Eastern and Southern (AFE) Ethiopia
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
topic	ENERGY EFFICIENCY FIXED-EFFECT QUANTILE REGRESSION ELECTRICITY CFL ELECTRIC BULB COMPACT FLUORESCENT LAMP
spellingShingle	ENERGY EFFICIENCY FIXED-EFFECT QUANTILE REGRESSION ELECTRICITY CFL ELECTRIC BULB COMPACT FLUORESCENT LAMP Iimi, Atsushi Elahi, Raihan Kitchlu, Rahul Costolanski, Peter Energy-Saving Effects of Progressive Pricing and Free CFL Bulb Distribution Program : Evidence from Ethiopia
geographic_facet	Africa Africa Eastern and Southern (AFE) Ethiopia
description	In Africa, about 70 percent of the total population still lives without electricity. Significant resources are needed to meet the gap. Demand-side management is crucial to curb the increasing demand even in developing countries. A traditional approach is to raise prices, but promoting energy-efficient products such as compact fluorescent lamp (CFL) bulbs is also a win-win proposition. While end-users can reduce their spending, power utilities can avoid costly investments in new generation capacity. This paper estimates the effects of progressive pricing as well as CFL distribution program in Ethiopia. It is found that the increasing block tariff structure reduced the demand: the price elasticity is estimated at 0.29. This is particularly useful to influence large-volume users, who are presumably the rich. The CFL program is also found effective to contain the electricity demand. The estimated impact is about 45 kWh per customer. This is significant energy savings particularly for low-volume users.
format	Journal Article
author	Iimi, Atsushi Elahi, Raihan Kitchlu, Rahul Costolanski, Peter
author_facet	Iimi, Atsushi Elahi, Raihan Kitchlu, Rahul Costolanski, Peter
author_sort	Iimi, Atsushi
title	Energy-Saving Effects of Progressive Pricing and Free CFL Bulb Distribution Program : Evidence from Ethiopia
title_short	Energy-Saving Effects of Progressive Pricing and Free CFL Bulb Distribution Program : Evidence from Ethiopia
title_full	Energy-Saving Effects of Progressive Pricing and Free CFL Bulb Distribution Program : Evidence from Ethiopia
title_fullStr	Energy-Saving Effects of Progressive Pricing and Free CFL Bulb Distribution Program : Evidence from Ethiopia
title_full_unstemmed	Energy-Saving Effects of Progressive Pricing and Free CFL Bulb Distribution Program : Evidence from Ethiopia
title_sort	energy-saving effects of progressive pricing and free cfl bulb distribution program : evidence from ethiopia
publisher	Published by Oxford University Press on behalf of the World Bank
publishDate	2020
url	http://hdl.handle.net/10986/34873
_version_	1764481836269961216

Energy-Saving Effects of Progressive Pricing and Free CFL Bulb Distribution Program : Evidence from Ethiopia

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