On the Adoption and Dis-adoption of Household Energy and Farm Technologies

190 Pages·2015·2.57 MB·English

ECONOMIC STUDIES
DEPARTMENT OF ECONOMICS
SCHOOL OF BUSINESS, ECONOMICS AND LAW
UNIVERSITY OF GOTHENBURG
223
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On the Adoption and Dis-adoption of Household Energy and
Farm Technologies

Sied Hassen
ISBN 978-91-88199-01-0 (printed)
ISBN 978-91-88199-02-7 (pdf)
ISSN 1651-4289 print
ISSN 1651-4297 online

Printed in Sweden,
Ineko 2015
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To My Wife and My Parents
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Table of Contents
Acknowledgments i
Abstracts v
Overview vii
Paper I: Intra-household bargaining power and demand for clean and energy
efficient Stoves: Experimental evidence from rural Ethiopia
1. Introduction 2
2. Experiment setting, data collection and design 6
Choice of geographical location 6
Data collection 7
Experiment design and procedures 9
3. Conceptual framework 12
4. Empirical strategy 15
5. Descriptive statistics 22
Descriptive statistics from survey 22
Results from the BDM stove purchase experiment 25
Descriptive statistics: length of time the improved stoves are in use 27
6. Econometric results 27
Instruments validity and first stage regression results 27
IV-Tobit results: willingness to pay, autonomy (autocracy) and other correlates 29
IV-Linear regression results: length of time the improved stoves are in use, wives’
autonomy and other correlates 32
7. Conclusion and policy implications 33
References 36
Appendix A 41
Appendix B 43
Appendix C 53

Paper II: Disadoption, substitutability and complementarity of agricultural
technologies: A Random Effects Multivariate Probit Analysis
1. Introduction 2
2. Conceptual framework and empirical strategy 6
3. Data and description of study area 8
4. Descriptive statistics 9
5. Econometrics results 14
MVP and SURE results: interdependencies and determinants of disadoption of
green revolution technologies 14
Robustness checks 18
6. Conclusion 19
References 21
Appendix A 27
Appendix B 32
Paper III: Household fuel choice in urban China: Evidence from panel data
1. Introduction 1
2. Review of Literature 3
3. Empirical Strategy 7
4. Data 11
5. Empirical Results 15
6. Conclusion and Policy Implications 23
References 25
List of Figures 31
List of Tables 32
Appendix 40
Paper IV: Adoption and disadoption of electric cookstoves in urban Ethiopia:
Evidence from panel data
1. Introduction 111
2. A Review of literature on improved stove adoption 112
3. Empirical strategy 113
Correlated random effects probit model 113
Discrte-time proportional hazrd model 115
4. Data and description of variables 116
5. Econometric Results 119
Adoption of electric mitad appliance 119
Transition into and out of adoption 121
7. Conclusion and policy implications 123
References 123
Acknowledgements
The long PhD journey has come to an end with this yellow book. It has been a lot of hard work,
butalsoenjoyable. Thisbookendsonetripinlifebutopensthedoorforanothertrip. Thethesis
would not have been accomplished without the support and encouragement of colleagues, friends
and various institutions. It is thus my pleasant duty to express my gratitude to all those who
contributedinmanywaystothecompletionofmyPhDstudyandmadeitamemorableexperience
forme.
First and foremost, I would like to thank God, Allah, for giving me the power to believe in
myself and pursue my dreams. I could never have done this without the faith I have in You, the
Almighty. Alhamdulillah!
I would like to express my genuine gratitude to my parents who have worked tirelessly all the
timetoprovidemethesupportneededtoreachthislevel. Myparents,despitebeinguneducated,
haveastrongbeliefthateducationhasthepowertochangesocietyandlives. Theyhavesacrificed
a lot to make sure that I have the highest education level. Thank you Mom and Dad! I am also
overwhelmingly thankful to my wife, Nejat (Habibti), who sacrificed some of her dreams in life
byfollowingmetoSweden. Hersupport,encouragement,patienceandlovewereindisputablythe
foundationuponwhichthepastfiveyearsofmylifehavebeenbuilt. Hertoleranceofmyfrequent
swings in moods due to schooling stress is a testament in itself of her unwavering devotion and
love. Habibti, I will always love you and be on your side! I also owe my deepest gratitude to my
brothers,sisters,brothers-in-law,sisters-in-law,mother-in-lawandfather-in-lawforallthesupport
andcourageyoubestowedonmeduringmystayinEthiopia.
My special appreciation and thanks goes to my two supervisors: Gunnar K¨ohlin and Yonas
Alem. They have been tremendous mentors for me. I had the privilege of co-authoring one of
my thesis chapters with both of them; this was published in Resources and Energy Economics.
This gave me the chance to explore more ideas on improved cookstoves in the developing world.
Gunnar,despiteyourbusyschedule,yourdoorisopentomeatappointedandunappointedtimes.
I remember one day I came at an unscheduled time around the early evening and you were in a
hurrynottomissthetrain,butyouletitgoandtalkedwithme. Iamsothankfulforyourinspiring
guidance and invaluably constructive criticism during the thesis writing period. Your advice on
research as well as on my career has been priceless. It is a great opportunity to do my doctoral
thesisunderyourguidanceandtolearnfromyourresearchexpertise. Tacks˚amycket!
IwouldliketoexpressmyheartfeltappreciationandgratitudetoYonasAlem. Heisayoung,
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energetic, brilliant and creative researcher. During the time of thesis writing, I was overwhelmed
by his incredibly quick and valuable suggestions for every new version of the papers, which he
providedbyreadingthemduringnightsandweekends. Youroptimismandadviceonbothresearch
andotherissueshasbeenasourceofhopeandinspirationtome. Ihavealsolearntalotfromyour
clevereconometricsskills,inparticularpaneldataeconometrics. Beyondbeingmysupervisor,you
have been a good friend to me. Yonas, thank you is not enough for all of your invaluable support
thathelpedmereachthisstage.
IwouldliketothankProfessorSubhrenduPattanayak,myopponentduringmyfinalseminarat
theDepartmentofEconomics,UniversityofGothenburg,forallhiscriticalbuthelpfulcomments.
Ihighlyappreciateyoursuggestionforthefollow-upsurveyforthefirstchapterofthethesis. Your
comments and suggestions were helpful in improving the papers. I am also highly indebted to
my co-author, Xiao-Bing Zhang, for inviting me to work on the urban China fuel consumption
project. I have really enjoyed the experience of working with a peer PhD student and I learnt
a lot from the discussions we had. Outside academics, it was also a great opportunity to be an
officematewithhim. Ineverfelttiredorboredintheofficewhenhewasaroundbecausehisjokes
were very entertaining; he is a quiet comedian. I would like to thank Haileselassie Medhin, Peter
Berck,Fredrik Carlson, Menale Kassie, Thomas Sterner, M˚ans S¨oderbom, Dale Whittington, and
seminarparticipantsattheDepartmentofEconomics,UniversityofGothenburg,andparticipants
atthe6th and8th EfDannualconferencesfortheirhelpfulcommentsanddiscussionsontheearlier
versionsofthepapers.
Myearnestthankfulnessgoestomyteacherswhosharedtheirknowledgeandthoughtsduring
my coursework: Olof Johansson-Stenman, Andreea Mitrut, Amrish Patel, Johan Stennek, Conny
Wollbrant,EyerusalemSiba,LennartHjalmarsson,ArneBigsten,OlegShchetinin,LennartFlood,
Ola Olsson, M˚ans S¨oderbom, Yonas Alem, Dick Durevall, Joakim Westerlund, Michele Valsecchi,
Thomas Sterner, H˚akan Eggert, Efthymia Kyriakopoulou, Elizabeth Robinson, Gunnar Ko¨hlin,
FredrikCarlsson,ElinaLampi,VicAdamowicz,MiteshKataria,FranciscoAlpizar,DaleWhitting-
ton, Peter Martinsson, Katarina Nordblom, Jessica Coria, Stefan Ambec, Xiangping Liu, Daniel
Slunge, and Olof Drakenberg. I also want to thank the researchers at the Beijer Institute of Eco-
logicalEconomicsfortheirnicehospitalityinSpring2012.
ItiswithimmensepleasurethatIexpressmythankfulnesstomyclassmateswhomadethePhD
studymorememorable: SimonaBejenariu,OanaBorcan,AnjaTolonen,MarcelaJaime,HangYin,
Xiao-BingZhang,RemidiusRuhinduka,EmilPersson,andJoakimRuist. Myspecialgratitudegoes
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tomySidaclassmatesMarcelaJaime,HangYin,Xiao-BingZhang,andRemidiusRuhinduka,who
made my PhD journey more enjoyable by preparing parties that reflected the different countries
wecomefrom. Thelaughterwesharedatthepartiesandoutside,andthetripsandtimewespent
together,willalwaysbeinmyheart.
MygratitudealsogoestoElizabethF¨oldi,Eva-LenaNeth-Johansson,SelmaOliveira,Po-Ts’an
Goh, ˚Asa Adin, Jeanette Saldjoughi, Ann-Christin R¨a¨ata¨ri Nystro¨m, Mona J¨onefors and Marita
Ta¨ıbfortheirgreatadministrativesupport,andtotheITdepartmentfortheirtechnicalassistance.
TheyprovidedinvaluablesupporttofinishthisPhDprogram. IamespeciallygratefultoElizabeth
F¨oldi for her sympathetic and sincere hospitality and for solving the problems that I encountered
during my PhD study. I also would like to thank Cyndi Berck for her excellent language and
editorialsupport.
Lastbutnotleast,IwouldliketoexpressthanksforthefinancialsupportIgotfromtheSwedish
InternationalDevelopmentCooperationAgency(Sida)throughtheEnvironmentalEconomicsUnit,
UniversityofGothenburg. AspecialthankalsogoestotheCollegeofBusinessandEconomicsand
theDepartmentofEconomics,MekelleUniversity,forprovidingsupportservicesformyfieldstudy
andforgrantingmestudyleaveforthewholeofmyPhDstudyperiod. Iwouldalsoliketothankthe
farmerswhoparticipatedinthesurveyandexperimentandtheenumeratorswhospentconsiderable
timewalkingtothevillagesofthesefarmersunderscorchingsunandinclementweatherconditions.
SiedHassen
May,2015
Gothenburg,Sweden
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