Energy-Saving Effects of Progressive Pricing and Free CFL Bulb Distribution Program: Evidence from Ethiopia

B-Tier
Journal: World Bank Economic Review
Year: 2019
Volume: 33
Issue: 2
Pages: 461-478

Authors (4)

Atsushi Iimi (World Bank Group) Raihan Elahi (not in RePEc) Rahul Kitchlu (not in RePEc) Peter Costolanski (not in RePEc)

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In Africa, about 70 percent of the total population still lives without electricity. Significant resources are needed to meet the gap. Demand-side management is crucial to curb the increasing demand even in developing countries. A traditional approach is to raise prices, but promoting energy-efficient products such as compact fluorescent lamp (CFL) bulbs is also a win-win proposition. While end-users can reduce their spending, power utilities can avoid costly investments in new generation capacity. This paper estimates the effects of progressive pricing as well as CFL distribution program in Ethiopia. It is found that the increasing block tariff structure reduced the demand: the price elasticity is estimated at 0.29. This is particularly useful to influence large-volume users, who are presumably the rich. The CFL program is also found effective to contain the electricity demand. The estimated impact is about 45 kWh per customer. This is significant energy savings particularly for low-volume users.

Technical Details

RePEc Handle
repec:oup:wbecrv:v:33:y:2019:i:2:p:461-478.
Journal Field
Development
Author Count
4
Added to Database
2026-01-25