Estimating the implicit discount rate for new technology adoption of wood-burning stoves

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dc.contributor.authorCarrasco-Garces, Moises
dc.contributor.authorVasquez-Lavin, Felipe
dc.contributor.authorPonce Oliva, Roberto D.
dc.contributor.authorDiaz Pincheira, Francisco
dc.contributor.authorBarrientos, Manuel
dc.date.accessioned2025-01-20T22:06:35Z
dc.date.available2025-01-20T22:06:35Z
dc.date.issued2021
dc.description.abstractIn the last decade, there have been several initiatives to incentivize Efficient Energy Technologies (EET) to reduce air pollution caused by wood-burning in developing countries. More efficient woodstoves can improve health, reduce family expenditures, CO2 emissions, and forest degradation. Despite these benefits, there is low level of adoption of EETs. This paper contributed to the literature in three ways. First, it estimates the implicit discount rate (IDR) used by individuals to decide whether to adopt EET using exponential and hyperbolic specifications. Second, it includes sociodemographic characteristics in the definition of the IDR. Third, it evaluates how the adoption curve changes by different policy designs. Since the interest rate is part of the policy design, comparing the interest rate and the IDR is relevant to increasing adoption. Our monthly estimated IDR is between 1.7% and 5.4% with a significant overlap with market interest rate. The IDR is affected by the perception of the future economic situation, trust in environmental authorities, happiness, and gender. We found that using an interest rate lower than the IDR increases the probability of adoption significantly. An understanding of the effects of copayments, payment frequencies, and difference between interest rates and IDR is needed to maximize adoption.
dc.description.funderCenter of Applied Ecology and Sustainability (CAPES), ANID PIA/BASAL
dc.fuente.origenWOS
dc.identifier.doi10.1016/j.enpol.2021.112407
dc.identifier.eissn1873-6777
dc.identifier.issn0301-4215
dc.identifier.urihttps://doi.org/10.1016/j.enpol.2021.112407
dc.identifier.urihttps://repositorio.uc.cl/handle/11534/94213
dc.identifier.wosidWOS:000706054000019
dc.language.isoen
dc.revistaEnergy policy
dc.rightsacceso restringido
dc.subjectEfficient energy technologies
dc.subjectImplicit discount rate
dc.subjectStated preferences
dc.subjectIntertemporal choice
dc.subjectEnergy regulation
dc.subject.ods03 Good Health and Well-being
dc.subject.odspa03 Salud y bienestar
dc.titleEstimating the implicit discount rate for new technology adoption of wood-burning stoves
dc.typeartículo
dc.volumen156
sipa.indexWOS
sipa.trazabilidadWOS;2025-01-12
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