The effect of information and subsidy on adoption of solar lanterns: An application of the BDM bidding mechanism in rural Ethiopia
The transition to solar energy to provide clean lighting for rural households in developing countries has been slow. Using a Becker-DeGroot-Marschak (BDM) bidding mechanism in a randomized field experiment, this study investigated the effect of information and subsidy policy instruments on the uptake of solar lanterns. The BDM approach used provides a more comprehensive and more transparent approach for eliciting willingness to pay (WTP), as our random draw is from a wide range of uniformly distributed prices, drawn in front of the subjects.