Explaining willingness to pay for pricing reforms that improve electricity service in India

Blankenship, Brian; Wong, J.Y.; Urpelainen, Johannes

doi:10.1016/j.enpol.2019.01.015

Cited by 29 publications

(19 citation statements)

References 32 publications

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“…This indicates that prospects of electrifying the region through the deployment of microgrid energy technologies are high. Our study findings are in contradictory with Blankenship et al [41] where no such evidence for sense of entitlement -the belief that government should offer basic goods and service for free as a predictor of low WTP. On other hand, studies demonstrated the provision of incentives [42], monthly instalment-based payment [17], collaborative consumption and community ownerships [16].…”

Section: Discussioncontrasting

confidence: 99%

Developing a Framework for Rural Electrification in India- Analysis of the Prospects of Micro-grid Solutions

Bhanja¹,

Kumar²,

Gupta³

et al. 2020

IJSDP

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The present research examines the perceptions of rural consumers towards the microgrid and rural electrification (RE) based solutions and develops a framework for improving the establishment of rural RE based microgrid solution captured from a case study in the Kalimpong district of North Bengal. The study adopted a mixed methodology study design includes the qualitative and quantitative aspects of the study through stakeholder interviews and questionnaire-based primary survey of the sample households. The perceptions received from sample households were validated with the response from other stakeholders, including academicians, researchers and sectoral experts. Data were analysed using structural equation modelling (SEM). The findings of the present research indicate that to accelerate the socio-economic development of the hilly terrains of North Bengal region, multi-provider licensed based microgrid preferably with renewable-based is a preferred mode which ensures reliable and affordable access of electricity.

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Section: Discussioncontrasting

confidence: 99%

Developing a Framework for Rural Electrification in India- Analysis of the Prospects of Micro-grid Solutions

Bhanja¹,

Kumar²,

Gupta³

et al. 2020

IJSDP

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“…Focus group discussions confirmed this result, with rural male respondents emphasizing the positive impact of the fuel subsidy on economic opportunity and equity more than their urban counterparts. This is in line with other studies that suggest that rural households are more opposed to price increases because of affordability, with incomes relatively lower in rural areas ( Blankenship, Wong, and Urpelainen, 2019 ; Garg et al, 2016 ). This result is interesting, however, because urban households capture more of the absolute value of fuel subsidies than rural households ( Kyle, 2018 ) and so one might expect them to be more strongly opposed to reform.…”

Section: Resultssupporting

confidence: 92%

“…In some OPEC countries, there remains a belief that certain sections of society deserve some form of subsidized energy ( Hochman and Zilberman, 2015 ), and the same argument has been made in the Nigerian context ( Nwachukwu et al, 2013 ). Furthermore, support for pricing reform is clearly influenced by the extent to which those in the same community support reform ( Blankenship, Wong, and Urpelainen, 2019 ).…”

Section: Literature and Hypothesesmentioning

confidence: 99%

Fuel subsidy reform and the social contract in Nigeria: A micro-economic analysis

McCulloch¹,

Moerenhout²,

Yang³

2021

Energy Policy

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Fuel subsidies in Nigeria are enormous – around USD 3.9 billion – almost double the health budget. Such subsidies come at great cost: the opportunity costs of such spending on other development objectives are large; the distribution of resources to the state governments is reduced; the vast majority of the subsidy goes to better off Nigerians; and cheaper petrol encourages greater pollution, congestion and climate change. Despite this, most Nigerians oppose the reduction of subsidies. We draw on a new nationally representative household survey that asked Nigerian men and women about their knowledge and attitudes towards subsidies. We construct and test a set of hypotheses about the factors associated with support for subsidy reform. We find that those who pay more or who experience less availability of fuel tend to support reform more. On the other hand, people who believe the Government is corrupt or lacks the capacity to implement compensation programs appear strongly opposed to reform. Finally, being religious and the delivery of reasonable national and local services also improves the acceptance of reform. These results support the idea that building a social contract is key to reform success.

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“…This is true for some communities that are in proximate locations to on-grid infrastructure (Lee et al 2014). Several studies find that willingness to pay for electricity is low in LMICs, with low consumer surplus, weak institutions, and poor community engagement exacerbating the issue (Blankenship 2019;Lee 2020). In some cases, household incomes are not always sufficient to cover the costs of gaining access to or consuming electricity.…”

Section: Challenges For Expanding Electricity Accessmentioning

confidence: 99%

Strengthening intergroup social cohesion in fragile situations

Sonnenfeld¹,

Doherty²,

Berretta³

et al. 2021

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Explaining willingness to pay for pricing reforms that improve electricity service in India

Cited by 29 publications

References 32 publications

Developing a Framework for Rural Electrification in India- Analysis of the Prospects of Micro-grid Solutions

Developing a Framework for Rural Electrification in India- Analysis of the Prospects of Micro-grid Solutions

Fuel subsidy reform and the social contract in Nigeria: A micro-economic analysis

Strengthening intergroup social cohesion in fragile situations

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