Economics of Household Technology Adoption in Developing Countries: Evidence From Solar Technology Adoption in Rural India

35 Pages Posted: 22 Mar 2018  

Michaël Aklin

University of Pittsburgh - Department of Political Science

Patrick Bayer

University of Glasgow

Harish S.P.

College of William & Mary

Johannes Urpelainen

Johns Hopkins SAIS

Date Written: February 15, 2018

Abstract

Innovation is one of the most important drivers of economic development. Even in developing countries, households have access to a wide array of new technologies. However, factors affecting households' technology adoption decisions remain poorly understood. Using data on solar microgrid adoption from rural India, we investigate the determinants of household technology adoption. We offer all households identical solar products to avoid bias from product differentiation. Households pay a monthly fee for technology use, allowing us to abstract away from credit constraints as a barrier to adoption. The results show that household expenditures and savings as well as the household head's entrepreneurial attitude are strong predictors of adoption. In contrast, past fuel expenditures, risk acceptance, and community trust are not associated with technology adoption decisions. These findings suggest new directions for research on the microeconomics of household technology adoption, which is critical for sustainable development among the poor in developing countries.

Keywords: technology adoption, solar microgrids, household model, entrepreneurial spirit

JEL Classification: O12, Q42, Q55, Q56

Suggested Citation

Aklin, Michaël and Bayer, Patrick and S.P., Harish and Urpelainen, Johannes, Economics of Household Technology Adoption in Developing Countries: Evidence From Solar Technology Adoption in Rural India (February 15, 2018). Energy Economics, Forthcoming. Available at SSRN: https://ssrn.com/abstract=3144081

Michaël Aklin

University of Pittsburgh - Department of Political Science ( email )

4L01 Posvar Hall
Pittsburgh, PA 15260
United States

Patrick Bayer (Contact Author)

University of Glasgow ( email )

Glasgow, Scotland
United Kingdom

Harish S.P.

College of William & Mary ( email )

Government Dept, College of William & Mary
Post Office Box 8795
Williamsburg, VA 23186
United States

Johannes Urpelainen

Johns Hopkins SAIS ( email )

1740 Massachusetts Avenue, NW
Washington, DC 20036-1984
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
37
Abstract Views
183
PlumX