Improved cookstoves (ICS) can deliver “triple wins” by improving household health, local environments, and global climate. Yet their potential is in doubt because of low and slow diffusion, likely because of constraints imposed by differences in culture, geography, institutions, and missing markets. We offer insights about this challenge based on a multiyear, multiphase study with nearly 1,000 households in the Indian Himalayas. In phase I, we combined desk reviews, simulations, and focus groups to diagnose barriers to ICS adoption. In phase II, we implemented a set of pilots to simulate a mature market and designed an intervention that upgraded the supply chain (combining marketing and home delivery), provided rebates and financing to lower income and liquidity constraints, and allowed households a choice among ICS. In phase III, we used findings from these pilots to implement a field experiment to rigorously test whether this combination of upgraded supply and demand promotion stimulates adoption. The experiment showed that, compared with zero purchase in control villages, over half of intervention households bought an ICS, although demand was highly price-sensitive. Demand was at least twice as high for electric stoves relative to biomass ICS. Even among households that received a negligible price discount, the upgraded supply chain alone induced a 28 percentage-point increase in ICS ownership. Although the bundled intervention is resource-intensive, the full costs are lower than the social benefits of ICS promotion. Our findings suggest that market analysis, robust supply chains, and price discounts are critical for ICS diffusion.
Although several factors contribute to low rates of access to improved water and sanitation in the developing world, it is especially important to understand and measure household demand for these services. One valuable source of information regarding demand is the growing empirical literature that has applied stated preference methods to estimate households' willingness to pay (WTP). Because it is difficult to generalize and support planning based on this scattered literature, we conduct a meta-analysis to take stock of the worldwide sample of household WTP for improved drinking water services. Using 171 WTP estimates drawn from sixty studies, we first describe this sample and then examine the potential factors that explain variation in WTP estimates. Our results suggest that households are willing to pay between approximately $3 and $30 per month for improvements in water access. Specifically, in line with economic theory and intuition, WTP is sensitive to scope (the size of the change in drinking water services), as well as household income, and stated-preference elicitation method. We demonstrate how our results can be used to predict household-level WTP for selected improvements in drinking water access in regions with low coverage, and find that private benefits exceed the cost of provision.
While much work has examined approaches to increase uptake of a variety of household environmental, health, and energy technologies, researchers and policymakers alike have struggled to ensure long-term use. Drawing on a pilot-scale experiment conducted in rural Cambodia, this study evaluates whether economic incentives enhance continued use of-and fuel savings fromimproved cookstoves (ICS). Capital-cost subsidies that have been traditionally employed to enhance ICS adoption were augmented with rebates linked to stated and objectively measured use in order to investigate impacts on both initial and sustained adoption in the treatment group. Results show that households do respond to these rebates by adopting the intervention ICS at significantly higher rates, and by using it more frequently and for longer periods. Consistent with these stove-use patterns, solid-fuel use and time spent collecting or preparing fuels also decline. However, this effect appears to diminish over time. Thus, while economic inducements may significantly increase adoption and use of new environmental health technologies, corresponding reductions in environmental or livelihood burdens are not guaranteed. Additional research on the design and implementation of incentive-based interventions targeting households directly-such as carbon financing or other forms of results-based financing (RBF) for improved cookstovestherefore seems warranted prior to wider implementation of such solutions.
Programs implemented by non-governmental organizations (NGOs) are often more effective than comparable efforts by other actors, yet relatively little is known about how implementer identity drives final outcomes. By combining a stratified field experiment in India with a tripledifferences estimation strategy, we show that a local development NGO's prior engagement with target communities increases the effectiveness of a technology-promotion program implemented in these areas by at least 30 percent. This “NGO reputation effect” has implications for the generalizability and scalability of evidence from experimental research conducted with local implementation partners.
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