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Are credit constraints limiting demand for electricity? Evidence from Rwanda

Energy & Environment Rwanda

Photo Credit: DIVatUSAID

Are market frictions suppressing consumer demand for electricity among rural, low income populations in Rwanda? I partner with a private solar firm in Rwanda to randomly offer a solar-specific line of credit to current customers. The line of credit reduces market frictions that could be distorting consumer willingness to pay for electricity, and thereby allows me to better differentiate between consumer value and market frictions as determinants of electricity demand.

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