Stability and Evolution of Preferences for Improved Cookstoves -- A Difference-in-Difference Analysis of a Choice Experiment from Ethiopia

18 Pages Posted: 6 Aug 2019

See all articles by Sahan Dissanayake

Sahan Dissanayake

Colby College - Department of Economics

George Voigt

Colby College

Abbie Cooper

Colby College

Abebe Damte Beyene

World Bank

Randall Bluffstone

University of Reading

Zenebe Gebreegziabher

Mekelle University - Department of Economics

Daniel LaFave

Colby College

Peter Martinsson

Göteborg University - Department of Economics and Statistics

Alemu Mekonnen

Addis Ababa University - Department of Economics

Michael Toman

World Bank - Development Research Group (DECRG)

Date Written: June 28, 2019

Abstract

There is a growing effort in the non-market valuation literature toward better understanding of the stability and evolution of preferences over time. The study uses a novel approach combining a repeated choice experiment with a randomized controlled trial on stove adoption in Ethiopia to analyze the stability and evolution of preferences. The treatment group in the randomized controlled trial received an improved fuelwood stove with less fuelwood use, whereas the control group continued to use traditional cooking methods. Respondents were given the exact same choice questions in 2013 and 2016. The study began with 504 households in 36 communities in 2013, and 486 of the same households participated in 2016 (a 96 percent retention rate). The results show that preferences of the respondents from the control group are stable over the study period, while preferences of the respondents from the treatment group evolve. Moreover, households in the treatment group still using the stoves have significantly higher willingness to pay for all the stove's attributes in 2016 compared with 2013, indicating how longer experience can increase the willingness to pay for technology with environmentally preferable attributes.

Keywords: Global Environment, Flood Control, Hydrology, Energy Demand, Energy and Environment, Energy and Mining, Health Care Services Industry

Suggested Citation

Dissanayake, Sahan and Voigt, George and Cooper, Abbie and Beyene, Abebe Damte and Bluffstone, Randall and Gebreegziabher, Zenebe and LaFave, Daniel and Martinsson, Peter and Mekonnen, Alemu and Toman, Michael, Stability and Evolution of Preferences for Improved Cookstoves -- A Difference-in-Difference Analysis of a Choice Experiment from Ethiopia (June 28, 2019). World Bank Policy Research Working Paper No. 8928. Available at SSRN: https://ssrn.com/abstract=3430540

Sahan Dissanayake (Contact Author)

Colby College - Department of Economics ( email )

Waterville, ME 04901
United States

George Voigt

Colby College

4000 Mayflower Hill
Waterville, ME 04901-8852
United States

Abbie Cooper

Colby College

4000 Mayflower Hill
Waterville, ME 04901-8852
United States

Abebe Damte Beyene

World Bank

1818 H Street, NW
Washington, DC 20433
United States

Randall Bluffstone

University of Reading ( email )

Whiteknights
Reading, Berkshire RG6 6AH
United Kingdom

Zenebe Gebreegziabher

Mekelle University - Department of Economics ( email )

Adi Haki Campus
Post Box No. 451
Mekelle
Ethiopia

Daniel LaFave

Colby College ( email )

Peter Martinsson

Göteborg University - Department of Economics and Statistics ( email )

Box 640
Vasagatan 1, E-building, floor 5 & 6
Göteborg, 40530
Sweden

Alemu Mekonnen

Addis Ababa University - Department of Economics

Addis Ababa
Ethiopia

Michael Toman

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street N.W.
MSN3-311
Washington, DC 20433
United States

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