Economics of household technology adoption in developing countries: evidence from solar technology adoption in rural India

Aklin, M., Bayer, P. , Harish, S.P. and Urpelainen, J. (2018) Economics of household technology adoption in developing countries: evidence from solar technology adoption in rural India. Energy Economics, 72, pp. 35-46. (doi:10.1016/j.eneco.2018.02.011)

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Abstract

Innovation is one of the most important drivers of economic development. Even in developing countries, households have access to a wide array of new technologies. However, factors affecting households’ technology adoption decisions remain poorly understood. Using data on solar microgrid adoption from rural India, we investigate the determinants of household technology adoption. We offer all households identical solar products to avoid bias from product differentiation. Households pay a monthly fee for technology use, allowing us to abstract away from credit constraints as a barrier to adoption. The results show that household expenditures and savings as well as the household head’s entrepreneurial attitude are strong predictors of adoption. In contrast, past fuel expenditures, risk acceptance, and community trust are not associated with technology adoption decisions. These findings suggest new directions for research on the microeconomics of household technology adoption, which is critical for sustainable development among the poor in developing countries.

Item Type:Articles
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Bayer, Dr Patrick
Authors: Aklin, M., Bayer, P., Harish, S.P., and Urpelainen, J.
College/School:College of Social Sciences > School of Social and Political Sciences > Politics
Journal Name:Energy Economics
Publisher:Elsevier
ISSN:0140-9883
ISSN (Online):1873-6181
Published Online:02 March 2018
Copyright Holders:Copyright © 2018 Elsevier
First Published:First published in Energy Economics 72:35-46
Publisher Policy:Reproduced in accordance with the copyright policy of the publisher

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