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Ruhr Economic Papers #1081

2024

Gunther Bensch, Michael Grimm

Behavioural Constraints in Energy Technology Uptake: Evidence from Real-Purchase Offers in Rural Rwanda and Senegal

Energy-efficient biomass cookstoves and small solar systems play a vital role in the transition to clean energy. Despite their affordability and scalability, their uptake remains low among households in sub-Saharan Africa. This paper examines the potential contribution of individual-specific behavioural factors to the under-adoption of these technologies. Drawing on data from real-purchase offers in rural Rwanda and Senegal, the analysis focuses on how the willingness to pay for the technologies varies with behavioural constraints including risk aversion, innovation resistance, time preferences, and beliefs. Our results confirm that these factors carry relevant variation that helps understanding the purchase decision process. These findings contribute to a better comprehension of consumer adoption behaviour of innovative consumer goods at the base of the pyramid, providing valuable insights for suppliers entering these markets and informing policy interventions aimed at facilitating households’ transition to clean energy.

ISBN: 978-3-96973-255-7

JEL-Klassifikation: D12, O12, O13, O33, Q41

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