The role of financial inclusion in adoption of solar photovoltaic systems: A case of Uganda

Sylvia Manjeri Aarakit, Joseph M. Ntayi, Francis Wasswa, Faisal Buyinza, Muyiwa S. Adaramola and Vincent F. Ssennono

Renewable Energy, 2022, vol. 198, issue C, 984-998

Abstract: Globally, renewable energy technologies, such as solar photovoltaic (PV) contribute significantly to sustainable development. However, adoption of solar PV is limited in many developing countries. Governments have rolled out policy strategies like financial inclusion to stimulate deployment of modern energy technologies. Notwithstanding, little is known about financial inclusion and household solar PV adoption. Using two waves of Uganda National Household Survey data covering 28,913 households, this paper examines the effect of financial inclusion on adoption of solar PV. The study employed logit model and pooled ordinary least squares for estimation. Taking endogeneity into account, we find that financial inclusion has a strong positive effect on solar PV adoption. The estimates show that unit increase in financial inclusion increases the likelihood of residential solar PV adoption by 3.6% (p < 0.01). This finding is consistent across all robustness checks. The findings further suggest that use of mobile money is more important for solar PV adoption. The study identified household income and education as possible pathways through which financial inclusion influences solar PV adoption. Thus, policy makers and renewable energy practitioners should continue prioritizing financial inclusion particularly use of mobile money and financial remittances so as stimulate adoption of solar PV.

Keywords: Solar PV; Financial inclusion; Household; Policies; Pathways (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0960148122012228
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:renene:v:198:y:2022:i:c:p:984-998

DOI: 10.1016/j.renene.2022.08.056

Access Statistics for this article

Renewable Energy is currently edited by Soteris A. Kalogirou and Paul Christodoulides

More articles in Renewable Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().