 Potential of microcredit as a source of finance for development of Sri Lankan biogas industryTomáš Hes, Samuel Mintah, Haiyan Sulaiman, Tuan Arifeen, Petr Drbohlav and Ali Salman Energy & Environment, 2017, vol. 28, issue 5-6, 608-620 Abstract: The study serves to clarify doubts on the potential of commercial microcredit as a strategic vehicle of implementing of small-scale biogas plants in Sri Lanka, as an alternative to subsidy-based process. The quantified sum of unsubsidized microloan interest born by the biogas users in a modeled situation of maximum potential of the biogas sector financed through microfinance institutions is compared with national technology savings on a macro level. The analysis concludes that an economic justification for the microfinance-fuelled implementation of small-scale biodigesters employing a market-based approach does exist. Annual savings on macroeconomic level surpass the annual cost expressed as a sum of unsubsidized interest. The study furthermore proposes a three-party credit contract, which prevents credit defaults caused by the lack of customary after-sales care by integrating the provision of service providers into a contractual agreement with both the user and the financing source, thus assuming part of credit responsibility. Keywords: Biogas; biodigesters; microfinance; microcredit; Sri Lanka (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:sae:engenv:v:28:y:2017:i:5-6:p:608-620 Access Statistics for this article More articles in Energy & Environment |
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