Outputs
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Research in progress.
Project last updated on: 19 Oct 2016.
Almost 70 million people in Pakistan (35% of the population) do not have access to electricity, as they live in mostly rural areas not reached by the grid. Over 75 million (38%) on the grid receive low quality energy and experience outages for more than 12 hours per day. In spite of the significant benefits of access to electricity, the long-run feasibility of grid expansion for the provision of quality electricity to remote areas is often a concern. The development of market solutions to increase access and energy services in under-provided areas using renewables and alternative energy sources is essential to meet Sustainable Development Goal 7, reduce poverty and promote growth.
We are collaborating with a for-profit company supplying sustainable and efficient solar energy solutions (e.g. lights, fans, mobile chargers, TV) to small businesses in off-grid areas of rural Pakistan, to evaluate one such market solution. The product is innovative, as it alleviates credit constraints to adoption and has strong enforcement features: customers access energy through a pay-as-you-go monthly payment scheme and are disconnected when the credit expires.
The research provides contributions both research and policy-wise. First, we evaluate the impact of solar systems on small business outcomes in off-grid areas, which very few studies have tackled rigorously. Second, we investigate key determinants of the sustainability of the business model and of product take-up, by looking at the trade-off between discipline and flexibility in repayment schedule. We explore the behavioral underpinnings of two repayment schemes, by testing soft ways to increase the salience of repayment.
Project last updated on: 19 Oct 2016.