Are promotion programs needed to establish off-grid solar energy markets? Evidence from rural Burkina Faso

Arbeitspapier

Off-grid solar electric power is a promising technology for remote regions in rural Africa where expansion of the electricity grids is prohibitively expensive. Using household data from a target region of an off-grid solar promotion program in Burkina Faso, this paper explores the role of quality-verified branded solar home systems (SHS) versus non-branded ones. We find that the adoption rate of non-branded SHS is considerably higher at 36 percent compared to eight percent for branded SHS. We compare potential quality differences as well as the cost-effectiveness of branded and non-branded solar. We show that non-branded SHSs provide a similar service level as branded solar, that they do not fall behind in terms of consumer satisfaction and durability, and that non-branded products are more cost-effective. These findings suggest that promotion programs and branded solar products might not be needed to establish sustainable off-grid solar markets. The challenge however is to reach the very poor who are unable to bring up investment costs for any electricity.

Show object

• ISBN: 978-3-86788-759-5
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Ruhr Economic Papers ; No. 653

Classification and Topics

• Classification: Wirtschaft ; Consumer Economics: Empirical Analysis ; Market Structure, Pricing, and Design: General ; Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products ; Technological Change: Choices and Consequences; Diffusion Processes ; Energy: Demand and Supply; Prices
• Subject: energy access ; energy poverty ; technology adoption ; branded products ; cost-effectiveness ; rural Africa

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Bensch, Gunther ; Grimm, Michael ; Huppertz, Max ; Langbein, Jörg ; Peters, Jörg
• Event: Veröffentlichung
• (who): RWI - Leibniz-Institut für Wirtschaftsforschung
• (where): Essen
• (when): 2016

Further information

• DOI: doi:10.4419/86788759
• Handle: http://hdl.handle.net/10419/147826