Early Adopters of Solar Panels in Developing Countries: Evidence from Tanzania

Michael G. Smith and Johannes Urpelainen

Review of Policy Research, 2014, vol. 31, issue 1, 17-37

Abstract: Who pioneers the adoption of solar home systems as a source of power in developing countries? While many scholars of electrification praise off-grid options, evidence on their adoption from nationally representative surveys is lacking. We test existing and new hypotheses using the 2007 Tanzanian National Household Budget Survey. Since the survey is nationally representative and has more than 10,000 respondent households, it is ideal for our purposes. We find modest support for the notion that wealthier households adopt more readily than poorer ones. Surprisingly, electrified households adopt solar home systems more readily than other households, suggesting that solar home systems provide backup power. We further find that larger households adopt more readily than smaller ones and that a rural location or high education levels do not predict solar power use. These findings suggest that new policies are needed to promote solar home systems in poor and rural areas, where their development effectiveness is maximal.

Date: 2014
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