Susanna Berkouwer and Joshua Dean (Draft), Credit and Attention in the Adoption of Profitable Energy Efficient Technologies in Kenya.
Abstract: What roles do credit constraints and inattention play in the under-adoption of high-return technologies? We study this question in the case of energy efficient cookstoves in Nairobi. Using a randomized field experiment with 1,000 households, we estimate a 300% average annual rate of return to investing in this technology, or $120 per year in fuel savings - around one month of income. Despite this, adoption rates are low: eliciting preferences using an incentive-compatible Becker-DeGroot-Marschak mechanism, we find that average willingness-to-pay (WTP) is only $12. To investigate what drives this puzzling pattern, we cross-randomize access to credit with two interventions designed to increase attention to the costs and benefits of adoption. Our first main finding is that credit doubles WTP and closes the energy efficiency gap over the period of the loan. Second, credit works in part through psychological mechanisms: around one-third of the total impact of credit is caused by inattention to loan payments. We find no evidence of inattention to energy savings. Private benefits and avoided environmental damages generate average welfare gains of $600 for each stove adopted and used for two years.
Susanna Berkouwer (2020), Electric Heating and the Effects of Temperature on Household Electricity Consumption in South Africa, The Energy Journal, 41 (4), pp. 209-230. 10.5547/01956574.41.4.sber
Abstract: How does temperature affect household energy demand in low-income countries? This paper uses 132,375,282 hourly electricity consumption observations from 5,975 households in South Africa to estimate the causal effects of short-term temperature changes on household electricity consumption. The estimates flexibly identify a constant log-linear temperature response-for every 1°C increase in temperature, electricity consumption decreases by 4.1% among temperatures below the heating threshold but increases by 8.1% among temperatures above the cooling threshold. This relationship is driven more strongly by seasonal than hourly temperature changes. Holding all else constant, a 3.25°C increase in temperatures would reduce electricity consumption by 1,093.4 kWh (6.2%) per year per household. Widespread use of electric heating due to limited residential gas heating infrastructure likely drives this. These results point to important regional heterogeneity in how temperature increases may affect household energy demand in the coming decades.
Susanna Berkouwer, Noah Klugman, Joshua Adkins, Catherine Wolfram, Jay Taneja, Prabal Dutta (2019), Hardware, apps, and surveys at scale: Insights from measuring grid reliability in Accra, Ghana, ACM Conference on Computing and Sustainable Societies (COMPASS). https://doi.org/10.1145/3314344.3332482
Abstract: The vision of sensor systems that collect critical and previously ungathered information about the world is often only realized when sensors, students, and subjects move outside the academic laboratory. However, deployments at even the smallest scales introduce complexities and risks that can be difficult for a research team to anticipate. Over the past year, our interdisciplinary team of engineers and economists has been designing, deploying, and operating a large sensor network in Accra, Ghana that measures power outages and quality at households and firms. This network consists of 457 custom sensors, over 3,000 mobile app instances, thousands of participant surveys, and custom user incentive and deployment management systems. In part, this deployment supports an evaluation of the impacts of investments in the grid on reliability and the subsequent effects of improvements in reliability on socioeconomic well-being. We report our experiences as we move from performing small pilot deployments to our current scale, attempting to identify the pain points at each stage of the deployment. Finally, we extract high-level observations and lessons learned from our deployment activities, which we wish we had originally known when forecasting budgets, human resources, and project timelines. These insights will be critical as we look toward scaling our deployment to the entire city of Accra and beyond, and we hope that they will encourage and support other researchers looking to measure highly granular information about our world’s critical systems.
