Subsidies for technology adoption: Evidence from rural Cameroon

Policy brief 17 Feb 2022 Energy

Authors

This research examines how a short-term subsidy for a new solar lamp affects uptake, usage, and future demand for the product in rural Cameroon.
The findings suggest that subsidies stimulate uptake of the solar lamps and do not adversely affect subsequent use of the lamps. If subsidies decrease future willingness-to-pay for lamps, this effect is outweighed by increased learning about the benefits of the solar lamps.
Lowering prices via subsidies also encourages uptake by households who don’t use the lamp very much.
Additionally, information about the benefits of solar lamps does not seem to spread far beyond the source households who purchased the lamp.
The findings can help policymakers better design subsidy programmes to encourage the uptake and use of clean energy products.