Microfinance for clean cooking: What lessons can be learned for scaling up LPG adoption in Kenya through managed loans?

Hsu, Eric L.; Forougi, Noah; Gan, Meixi; Muchiri, Elizabeth; Pope, Dan; Puzzolo, Elisa

doi:10.1016/j.enpol.2021.112263

Cited by 30 publications

(6 citation statements)

References 23 publications

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“…Fuel choice has been defined and measured differently across studies. For example, there is no scholarly consensus on what the frequently used word "adoption" implies in the context of clean cooking transition-it varies from "uptake" (Ruiz-Mercado et al, 2011) to "some use" (Lewis & Pattanayak, 2012) to "use" (Hsu et al, 2021). Some studies have used terms like "primary adoption" (Kypridemos et al, 2020), or "sustained adoption" (Kumar & Mehta, 2016) to imply the energy dimension or time dimension of fuel choice.…”

Section: Literature Reviewmentioning

confidence: 99%

Determinants of non-primary, primary, and exclusive use of liquefied petroleum gas vary significantly in a nationally representative survey in Ghana

Kar

Tawiah

Graham

et al. 2022

Preprint

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Clean cooking transitions can have profound public health, environmental and societal gains for 2.6 billion people in the Global South. We use data from the largest household energy survey (n= 7,389) in Ghana to provide novel insights. One, regression analysis with thirteen commonly cited socio-economic and demographic predictors indicates that these factors have remarkably different levels of influence at different stages of the transition process. We propose a stage-based intervention strategy and customer targeting approach that could be a paradigm shift in how clean cooking interventions are rolled out. Two, we identify factors that are associated with exclusive use of LPG using a statistically powered sample of exclusive LPG users (n= 693). We find that everything else being equal, increases in wealth, and residing in an urban location are not associated with a transition from primary to exclusive LPG use.

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Section: Literature Reviewmentioning

confidence: 99%

Determinants of non-primary, primary, and exclusive use of liquefied petroleum gas vary significantly in a nationally representative survey in Ghana

Kar

Tawiah

Graham

et al. 2022

Preprint

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“…Clean energy traditional financing for low-income consumers, especially in rural areas, is characterised with high loan transaction costs and difficulties of assessing and predicting consumers' repayment risks. However, there is growing evidence that microfinance and informal lending by savings groups are expanding the adoption of clean cooking solutions in resource-poor settings [64]. Even though microfinance plays an important role in reaching consumers in rural areas who are in need of financial services but often excluded from formal finance, it comes at a cost-effective interest rates of microfinance can go well over 100% [65].…”

Section: Financingmentioning

confidence: 99%

Results-Based Financing (RBF) for Modern Energy Cooking Solutions: An Effective Driver for Innovation and Scale?

et al. 2021

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Results-based financing (RBF) programmes in the clean cooking sector have gained increasing donor interest over the last decade. Although the risks and advantages of RBF have been discussed quite extensively for other sectors, especially health services, there is limited research-documented experience of its application to clean cooking. Due to the sheer scale of the important transition from ‘dirty’ to clean cooking for the 4 billion people who lack access, especially in the Global South, efficient and performance-proven solutions are urgently required. This paper, undertaken as part of the work of the UKAid-funded Modern Energy Cooking Services (MECS) programme, aims to close an important research gap by reviewing evidence-based support mechanisms and documenting essential experiences from previous and ongoing RBF programmes in the clean cooking and other sectors. On this basis, the paper derives key strategic implications and learning lessons for the global scaling of RBF programmes and finds that qualitative key performance indicators such as consumer acceptance as well as longer-term monitoring are critical long-term success factors for RBF to ensure the continued uptake and use of clean cooking solutions (CCS), however securing the inclusion of these indicators within programmes remains challenging. Finally, by discussing the opportunities for the evolution of RBF into broader impact funding programmes and the integration of energy access and clean cooking strategies through multi-sector approaches, the paper illustrates potential steps to enhance the impact of RBF in this sector in the future.

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“…International research in sub-Saharan Africa and other lower-and-middle-income countries (LMIC) highlights that mechanisms to reduce the up-front cost of switching to LPG can accelerate its adoption, especially when combined with education and sensitization efforts. These include consumer innovations such as microfinance for initial purchase of LPG equipment [57][58][59] and the potential for paying for LPG in small amounts through pay-as-you-go smart meter technology (PAYG LPG) [35,60]. This latter commercial innovation is receiving increasing attention for its potential in opening up clean cooking with LPG to low-income households given (i) no (or greatly reduced) upfront LPG equipment costs and (ii) the ability to pay for LPG in small increments (although at higher costs per kg) [35,60,61].…”

Section: Scaling Adoption Of Lpg To Government and Sdg7 Time Horizonsmentioning

confidence: 99%

Towards Sustainable Development Goal 7 “Universal Access to Clean Modern Energy”: National Strategy in Rwanda to Scale Clean Cooking with Bottled Gas

Čukić

Kypridemos

Evans³

et al. 2021

Energies

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More than 90% of Rwandans rely on polluting solid fuels to meet their cooking needs. The negative impacts on health, climate, and the environment have led the Rwandan government to set a target of halving that number to 42% by 2024. A National Master Plan to promote scale up of liquefied petroleum gas (LPG) has been developed to define (i) the necessary market conditions, (ii) public and private sector interventions, and (iii) the expected societal impacts. Findings are reported from modelling scenarios of scaling LPG use towards the 2024 policy target and the 2030 target for “universal access to clean modern energy” (SDG7). Household LPG use is projected to increase from 5.6% in 2020 to 13.2% by 2024 and 38.5% by 2030. This level of adoption could result in a reduction of 7656 premature deaths and 403,664 disability-adjusted-life-years (DALYs), as well as 243 million trees saved. Reductions in carbon dioxide and black carbon emissions equivalents (CO2e and BCe, respectively) are estimated to reach 25.6 million MT and 14.9 MT, respectively, by 2030. While aggressive policy intervention is required, the health, environmental, and developmental benefits are clear. Implementation of the Rwanda National LPG Master Plan will provide a model for other sub-Saharan African countries to address the priorities for cessation of reliance on solid fuels as an energy source.

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Microfinance for clean cooking: What lessons can be learned for scaling up LPG adoption in Kenya through managed loans?

Cited by 30 publications

References 23 publications

Determinants of non-primary, primary, and exclusive use of liquefied petroleum gas vary significantly in a nationally representative survey in Ghana

Determinants of non-primary, primary, and exclusive use of liquefied petroleum gas vary significantly in a nationally representative survey in Ghana

Results-Based Financing (RBF) for Modern Energy Cooking Solutions: An Effective Driver for Innovation and Scale?

Towards Sustainable Development Goal 7 “Universal Access to Clean Modern Energy”: National Strategy in Rwanda to Scale Clean Cooking with Bottled Gas

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