The Benefits of Solar Home Systems : An Analysis from Bangladesh

The Government of Bangladesh, with help from the World Bank and other donors, has provided aid to a local agency called Infrastructure Development Company Limited and its partner organizations to devise a credit scheme for marketing solar home syst...

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Main Authors: Samad, Hussain A., Khandker, Shahidur R., Asaduzzaman, M., Yunus, Mohammad
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2014
Subjects:
AIR
OIL
Online Access:http://documents.worldbank.org/curated/en/2013/11/18640651/benefits-solar-home-systems-analysis-bangladesh
http://hdl.handle.net/10986/16939
id okr-10986-16939
recordtype oai_dc
spelling okr-10986-169392021-04-23T14:03:33Z The Benefits of Solar Home Systems : An Analysis from Bangladesh Samad, Hussain A. Khandker, Shahidur R. Asaduzzaman, M. Yunus, Mohammad ACCESS TO ELECTRICITY ACCESS TO MODERN ENERGY AGRICULTURE AIR AIR POLLUTION ALTERNATIVE FUELS ALTERNATIVE METHOD APPROACH AVAILABILITY AVERAGE HOUSEHOLD CONSUMPTION AVERAGE PRICE BACKUP POWER BASE YEAR BATTERIES BIOMASS CALCULATION CARBON DIOXIDE CARBON EMISSION CLIMATE CLIMATE CHANGE COAL CONSUMER SURPLUS CONSUMERS CONSUMPTION OF ENERGY CONSUMPTION PATTERNS CONTROLLED PRICES COOKING COST EFFECTIVENESS CROP CROP RESIDUE DECISION MAKING DEMAND FOR ELECTRICITY DEVELOPMENT POLICY DRY CELL BATTERIES DUNG ECONOMETRICS ELECTRIC GENERATION ELECTRIC GRID ELECTRIC POWER ELECTRICITY CONSUMPTION ELECTRICITY GENERATION ELECTRIFICATION EMISSION EMISSION OF CARBON EMPLOYMENT ENERGY CONSUMPTION ENERGY DEMAND ENERGY FORM ENERGY GENERATION ENERGY POLICY ENERGY REQUIREMENTS ENERGY SERVICES ENERGY SOURCE ENERGY SOURCES FOSSIL FOSSIL FUELS FUEL COLLECTION FUEL WOOD GENERATION OF ELECTRICITY GRID AREAS GRID ELECTRICITY GRID ELECTRIFICATION HOUSEHOLD CONSUMPTION HOUSEHOLD INCOME HOUSEHOLD LIGHTING KEROSENE KEROSENE CONSUMPTION KEROSENE LAMPS LAND OWNERSHIP NATIONAL ELECTRICITY GRIDS OIL PER CAPITA CONSUMPTION PHOTOVOLTAIC TECHNOLOGY PHOTOVOLTAICS POLICY MAKERS POLLUTION POLLUTION LEVELS POSITIVE EXTERNALITY POWER POWER GENERATION POWER PROGRAM POWER SECTOR PRICE EFFECT PRICE ELASTICITY PRICE INCREASES PRIMARY FUEL PRODUCTION FUNCTION QUALITY ENERGY RENEWABLE ENERGY RURAL AREAS RURAL ELECTRIFICATION RURAL HOUSEHOLD RURAL HOUSEHOLDS SMOKE SOLAR ELECTRICITY SOLAR ELECTRIFICATION SOLAR ENERGY SOLAR HOME SOLAR HOME SYSTEM SOLAR HOME SYSTEMS SOLAR PANEL SOLAR PANELS SOLAR POWER SOLAR POWER GENERATION SOLAR SYSTEM SUBSTITUTE FUEL SUBSTITUTION SUSTAINABLE ENERGY VILLAGE LEVEL WEALTH WOOD BIOMASS The Government of Bangladesh, with help from the World Bank and other donors, has provided aid to a local agency called Infrastructure Development Company Limited and its partner organizations to devise a credit scheme for marketing solar home system units and making these an affordable alternative to grid electricity for poor people in remote areas. This paper uses household survey data to examine the financing scheme behind the dissemination of these solar home systems, in particular the role of the subsidy; the factors that determine the adoption of the systems in rural Bangladesh; and the welfare impacts of such adoption. The paper finds that while the subsidy has been declining over time, the demand for solar home systems has seen phenomenal growth, mostly because of technological developments that have made the systems increasingly more affordable. Households with better physical and educational endowments are more likely to adopt solar home systems than poor households. The price of the system matters in household decision making -- a 10 percent decline in the price of the system increases the overall demand for a solar panel by 2 percent. As for the benefits, adoption of a solar home system improves children s evening study time, lowers kerosene consumption, and provides health benefits for household members, in particular for women. It is also found to increase women's decision-making ability in certain household affairs. Finally, it is found to increase household consumption expenditure, although at a small scale. 2014-02-05T19:06:47Z 2014-02-05T19:06:47Z 2013-12 http://documents.worldbank.org/curated/en/2013/11/18640651/benefits-solar-home-systems-analysis-bangladesh http://hdl.handle.net/10986/16939 English en_US Policy Research Working Paper;No. 6724 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research South Asia Bangladesh
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ACCESS TO ELECTRICITY
ACCESS TO MODERN ENERGY
AGRICULTURE
AIR
AIR POLLUTION
ALTERNATIVE FUELS
ALTERNATIVE METHOD
APPROACH
AVAILABILITY
AVERAGE HOUSEHOLD CONSUMPTION
AVERAGE PRICE
BACKUP POWER
BASE YEAR
BATTERIES
BIOMASS
CALCULATION
CARBON DIOXIDE
CARBON EMISSION
CLIMATE
CLIMATE CHANGE
COAL
CONSUMER SURPLUS
CONSUMERS
CONSUMPTION OF ENERGY
CONSUMPTION PATTERNS
CONTROLLED PRICES
COOKING
COST EFFECTIVENESS
CROP
CROP RESIDUE
DECISION MAKING
DEMAND FOR ELECTRICITY
DEVELOPMENT POLICY
DRY CELL BATTERIES
DUNG
ECONOMETRICS
ELECTRIC GENERATION
ELECTRIC GRID
ELECTRIC POWER
ELECTRICITY CONSUMPTION
ELECTRICITY GENERATION
ELECTRIFICATION
EMISSION
EMISSION OF CARBON
EMPLOYMENT
ENERGY CONSUMPTION
ENERGY DEMAND
ENERGY FORM
ENERGY GENERATION
ENERGY POLICY
ENERGY REQUIREMENTS
ENERGY SERVICES
ENERGY SOURCE
ENERGY SOURCES
FOSSIL
FOSSIL FUELS
FUEL COLLECTION
FUEL WOOD
GENERATION OF ELECTRICITY
GRID AREAS
GRID ELECTRICITY
GRID ELECTRIFICATION
HOUSEHOLD CONSUMPTION
HOUSEHOLD INCOME
HOUSEHOLD LIGHTING
KEROSENE
KEROSENE CONSUMPTION
KEROSENE LAMPS
LAND OWNERSHIP
NATIONAL ELECTRICITY GRIDS
OIL
PER CAPITA CONSUMPTION
PHOTOVOLTAIC TECHNOLOGY
PHOTOVOLTAICS
POLICY MAKERS
POLLUTION
POLLUTION LEVELS
POSITIVE EXTERNALITY
POWER
POWER GENERATION
POWER PROGRAM
POWER SECTOR
PRICE EFFECT
PRICE ELASTICITY
PRICE INCREASES
PRIMARY FUEL
PRODUCTION FUNCTION
QUALITY ENERGY
RENEWABLE ENERGY
RURAL AREAS
RURAL ELECTRIFICATION
RURAL HOUSEHOLD
RURAL HOUSEHOLDS
SMOKE
SOLAR ELECTRICITY
SOLAR ELECTRIFICATION
SOLAR ENERGY
SOLAR HOME
SOLAR HOME SYSTEM
SOLAR HOME SYSTEMS
SOLAR PANEL
SOLAR PANELS
SOLAR POWER
SOLAR POWER GENERATION
SOLAR SYSTEM
SUBSTITUTE FUEL
SUBSTITUTION
SUSTAINABLE ENERGY
VILLAGE LEVEL
WEALTH
WOOD BIOMASS
spellingShingle ACCESS TO ELECTRICITY
ACCESS TO MODERN ENERGY
AGRICULTURE
AIR
AIR POLLUTION
ALTERNATIVE FUELS
ALTERNATIVE METHOD
APPROACH
AVAILABILITY
AVERAGE HOUSEHOLD CONSUMPTION
AVERAGE PRICE
BACKUP POWER
BASE YEAR
BATTERIES
BIOMASS
CALCULATION
CARBON DIOXIDE
CARBON EMISSION
CLIMATE
CLIMATE CHANGE
COAL
CONSUMER SURPLUS
CONSUMERS
CONSUMPTION OF ENERGY
CONSUMPTION PATTERNS
CONTROLLED PRICES
COOKING
COST EFFECTIVENESS
CROP
CROP RESIDUE
DECISION MAKING
DEMAND FOR ELECTRICITY
DEVELOPMENT POLICY
DRY CELL BATTERIES
DUNG
ECONOMETRICS
ELECTRIC GENERATION
ELECTRIC GRID
ELECTRIC POWER
ELECTRICITY CONSUMPTION
ELECTRICITY GENERATION
ELECTRIFICATION
EMISSION
EMISSION OF CARBON
EMPLOYMENT
ENERGY CONSUMPTION
ENERGY DEMAND
ENERGY FORM
ENERGY GENERATION
ENERGY POLICY
ENERGY REQUIREMENTS
ENERGY SERVICES
ENERGY SOURCE
ENERGY SOURCES
FOSSIL
FOSSIL FUELS
FUEL COLLECTION
FUEL WOOD
GENERATION OF ELECTRICITY
GRID AREAS
GRID ELECTRICITY
GRID ELECTRIFICATION
HOUSEHOLD CONSUMPTION
HOUSEHOLD INCOME
HOUSEHOLD LIGHTING
KEROSENE
KEROSENE CONSUMPTION
KEROSENE LAMPS
LAND OWNERSHIP
NATIONAL ELECTRICITY GRIDS
OIL
PER CAPITA CONSUMPTION
PHOTOVOLTAIC TECHNOLOGY
PHOTOVOLTAICS
POLICY MAKERS
POLLUTION
POLLUTION LEVELS
POSITIVE EXTERNALITY
POWER
POWER GENERATION
POWER PROGRAM
POWER SECTOR
PRICE EFFECT
PRICE ELASTICITY
PRICE INCREASES
PRIMARY FUEL
PRODUCTION FUNCTION
QUALITY ENERGY
RENEWABLE ENERGY
RURAL AREAS
RURAL ELECTRIFICATION
RURAL HOUSEHOLD
RURAL HOUSEHOLDS
SMOKE
SOLAR ELECTRICITY
SOLAR ELECTRIFICATION
SOLAR ENERGY
SOLAR HOME
SOLAR HOME SYSTEM
SOLAR HOME SYSTEMS
SOLAR PANEL
SOLAR PANELS
SOLAR POWER
SOLAR POWER GENERATION
SOLAR SYSTEM
SUBSTITUTE FUEL
SUBSTITUTION
SUSTAINABLE ENERGY
VILLAGE LEVEL
WEALTH
WOOD BIOMASS
Samad, Hussain A.
Khandker, Shahidur R.
Asaduzzaman, M.
Yunus, Mohammad
The Benefits of Solar Home Systems : An Analysis from Bangladesh
geographic_facet South Asia
Bangladesh
relation Policy Research Working Paper;No. 6724
description The Government of Bangladesh, with help from the World Bank and other donors, has provided aid to a local agency called Infrastructure Development Company Limited and its partner organizations to devise a credit scheme for marketing solar home system units and making these an affordable alternative to grid electricity for poor people in remote areas. This paper uses household survey data to examine the financing scheme behind the dissemination of these solar home systems, in particular the role of the subsidy; the factors that determine the adoption of the systems in rural Bangladesh; and the welfare impacts of such adoption. The paper finds that while the subsidy has been declining over time, the demand for solar home systems has seen phenomenal growth, mostly because of technological developments that have made the systems increasingly more affordable. Households with better physical and educational endowments are more likely to adopt solar home systems than poor households. The price of the system matters in household decision making -- a 10 percent decline in the price of the system increases the overall demand for a solar panel by 2 percent. As for the benefits, adoption of a solar home system improves children s evening study time, lowers kerosene consumption, and provides health benefits for household members, in particular for women. It is also found to increase women's decision-making ability in certain household affairs. Finally, it is found to increase household consumption expenditure, although at a small scale.
format Publications & Research :: Policy Research Working Paper
author Samad, Hussain A.
Khandker, Shahidur R.
Asaduzzaman, M.
Yunus, Mohammad
author_facet Samad, Hussain A.
Khandker, Shahidur R.
Asaduzzaman, M.
Yunus, Mohammad
author_sort Samad, Hussain A.
title The Benefits of Solar Home Systems : An Analysis from Bangladesh
title_short The Benefits of Solar Home Systems : An Analysis from Bangladesh
title_full The Benefits of Solar Home Systems : An Analysis from Bangladesh
title_fullStr The Benefits of Solar Home Systems : An Analysis from Bangladesh
title_full_unstemmed The Benefits of Solar Home Systems : An Analysis from Bangladesh
title_sort benefits of solar home systems : an analysis from bangladesh
publisher World Bank, Washington, DC
publishDate 2014
url http://documents.worldbank.org/curated/en/2013/11/18640651/benefits-solar-home-systems-analysis-bangladesh
http://hdl.handle.net/10986/16939
_version_ 1764434994855411712