 Utility-maximizing financial contracts for distributed rural electrificationTodd Levin and Valerie M. Thomas Energy, 2014, vol. 69, issue C, 613-621 Abstract: We develop a cost-benefit framework for extending electricity access in currently un-electrified regions. We first show that distributed technologies may be the lowest-cost electrification option in areas where electricity consumption is low and grid connection costs are high. We also show that some centralized electrification programs provide services with subsidized rates far below cost recovery. An economic model is developed to compare three financial mechanisms that can be used to make capital intensive, distributed electrification technologies more accessible to rural populations; direct subsidies, rental programs and microloans. These contracts are compared on their ability to increase consumer utility for a given cost to the providing agency. We show that a direct technology subsidy is generally preferred when the desired subsidization is high and that, under certain parameter combinations, microloan and rental programs can improve energy access for the poor while also making a profit for the providing agency. Keywords: Rural electrification; Distributed energy systems; Electricity subsidies; Energy micro-finance; Financial delivery mechanisms; International energy development (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:69:y:2014:i:c:p:613-621 DOI: 10.1016/j.energy.2014.03.057 Access Statistics for this article Energy is currently edited by Henrik Lund and Mark J. Kaiser More articles in Energy from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.