Impacts of Solar Subsidy: Evidence from Geographic Regression Discontinuity Design in Nepal

Duke Global Working Paper Series No. 42

51 Pages Posted: 16 Sep 2021 Last revised: 27 Apr 2022

See all articles by Bishal Bharadwaj

Bishal Bharadwaj

University of Queensland - School of Chemical Engineering

Ngawang Dendup

Waseda University - Graduate School of Economics

Subhrendu K. Pattanayak

Duke University

Peta Ashworth

The University of Queensland; University of Queensland - School of Chemical Engineering

Duke Global Working Paper Series Submitter

Duke University

Date Written: September 3, 2021

Abstract

We examine a solar home systems (SHS) subsidy policy of Nepal. We first estimate the effect of additional subsidy on SHS adoption and then its downstream benefits - children’s education, time allocated to agricultural and household work (both unpaid) and working for a wage. We use geographic regression discontinuity design with (cost) distance as the assignment variable. Our results show that subsidy-eligible households are about 45% more likely to adopt SHS and 43% less likely to use kerosene lamp that emits roughly 2.1 tons of carbon dioxide equivalent GWP. We find a positive effect of the SHS adoption on the grade for age with the effect being higher on girls than boys. We also find that females are about 33% more likely to participate in work for agriculture and males are 26% more likely to participate in household work. However, there is no effect on the participation rates across the labour market.

Suggested Citation

Bharadwaj, Bishal and Dendup, Ngawang and Pattanayak, Subhrendu K. and Ashworth, Peta and Submitter, Duke Global Working Paper Series, Impacts of Solar Subsidy: Evidence from Geographic Regression Discontinuity Design in Nepal (September 3, 2021). Duke Global Working Paper Series No. 42, Available at SSRN: https://ssrn.com/abstract=3916331 or http://dx.doi.org/10.2139/ssrn.3916331

Bishal Bharadwaj (Contact Author)

University of Queensland - School of Chemical Engineering ( email )

St Lucia
Brisbane, Queensland 4072
Australia

Ngawang Dendup

Waseda University - Graduate School of Economics ( email )

1-6-1 Nishi-waseda, Shinjuku-ku
Tokyo
Japan

Subhrendu K. Pattanayak

Duke University ( email )

100 Fuqua Drive
Durham, NC 27708-0204
United States

Peta Ashworth

The University of Queensland ( email )

Brisbane, QLD 4072
Australia
4072 (Fax)

University of Queensland - School of Chemical Engineering ( email )

St Lucia
Brisbane, Queensland 4072
Australia

Duke Global Working Paper Series Submitter

Duke University ( email )

100 Fuqua Drive
Durham, NC 27708-0204
United States

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