Dr. Gunther Bensch
RWI - Leibniz Institute for Economic Research
Email bensch@rwi-essen.de
Website www.rwi-essen.de/en/
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e research is based on an experiment conducted among a sample of households
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ocated in a rural intervention region of GIZ in Senegal. The Becker-DeGroot-
Marschak method was used, coupled with a real purchase offer, to determine h
ouseholds' willingness to pay in an unbiased manner. A complementary househo
ld survey was conducted to investigate how households make decisions regardi
ng the choice of modern energy options. Results show that both treatment and
control households reveal a remarkably high willingness to pay. The policy
implication is that one-time free distribution does not necessarily undermin
e future market establishment, and thus can be an effective policy instrumen
t if rapid dissemination is the objective.' (954 chars)
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This study investigates whether willingness to pay for improved cookstoves, and ultimately their acceptance, is increased by prior experience of use. The research is based on an experiment conducted among a sample of households that participated in a randomized controlled trial (RCT) in 2009 and 2010, located in a rural intervention region of GIZ in Senegal. The Becker-DeGroot-Marschak method was used, coupled with a real purchase offer, to determine households' willingness to pay in an unbiased manner. A complementary household survey was conducted to investigate how households make decisions regarding the choice of modern energy options. Results show that both treatment and control households reveal a remarkably high willingness to pay. The policy implication is that one-time free distribution does not necessarily undermine future market establishment, and thus can be an effective policy instrument if rapid dissemination is the objective.
RWI - Leibniz Institute for Economic Research
Email bensch@rwi-essen.de
Website www.rwi-essen.de/en/