Multilevel Customer Segmentation for Off-Grid Solar in Developing Countries: Evidence from Solar Home Systems in Rwanda and Kenya

Off-grid solar systems have a number of advantages in developing countries, but they rely on the capacity of private entrepreneurs to develop a reliable customer base and methods for recruiting these customers. This study uses data from 68,600 customers of BBOXX, a London-based off-grid solar power company, to classify customers and explore the demographic and recruitment factors associated with customer behavior. We compare a non-parametric clustering method for customer segmentation with linear models of customer behavior. The results show a number of important demographic and geographic factors that influence recruitment of the company’s core customers, and demonstrates how linear models can be misleading. For example, women and those recruited by agent advertising or word-of-mouth are more likely in the company’s core clientele, even though the linear models suggest that they may be less profitable customers.

Developing Global Champions: Why National Oil Companies Expand Abroad

National oil companies (NOCs) have invested hundreds of billions of dollars in foreign oil and gas assets. Why have some governments increased their NOC outward investments, while others have not? I argue that domestic structures can influence a government’s calculus that potential benefits, such as added revenues and fuel supply, outweigh potential costs, such as information asymmetries and inefficiencies associated with NOCs. Nationally, partisan competition limits democratic tolerance for failures by NOCs. Bureaucratically, overlapping authority in energy policy undermines coherent NOC governance. Based on investments by NOCs hailing from 79 countries, 2000-2013, I find robust evidence for the national hypothesis.

Water Security Implications of Coal-Fired Power Plants Financed Through China’s Belt and Road Initiative

As the world’s largest proposed infrastructure program, China’s Belt and Road Initiative will have significant implications for water security, sustainability, and the future of energy generation in Asia. Pakistan, a keystone of the Belt and Road Initiative, presents an ideal case for assessing the impacts of the Initiative’s energy financing. We estimate the future water demands of seven new Chinese-financed, coal-fired power plants in Pakistan with a total capacity of 6600 MW. While these facilities may help address Pakistan’s energy shortages, our results indicate that by 2055, climate change-induced water stress in Pakistan will increase by 36–92% compared to current levels, and the power plants’ new water demands will amount to ~79.68 million m3. Our findings highlight the need for China and the Belt and Road Initiative’s destination countries to integrate resilience and sustainability efforts into energy infrastructure planning. Policy recommendations are offered to permit both sustainable development and responsible water resource management.

Electrification and Appliance Ownership Over Time: Evidence from Rural India

Rural electrification has the potential to transform rural lives and livelihoods by allowing households to use a variety of electric appliances. However, empirical evidence on how rural electrification translates into appliance ownership and usage remains understudied across contexts. Here we use data from the 2014-2015 ACCESS survey in six energy-poor states of India to understand the dynamics of appliance stock accumulation as a function of time since electrification. We find that, controlling for a number of variables, each additional year of electricity access leads to: 1) incrementally higher ownership rates of more power-intensive appliances, 2) increased likelihood of a higher total stock of appliances, and 3) increased probability of owning key appliances, especially TVs, fans, and pressure cookers. These results may help to explain why short-term impact evaluations sometimes find weak evidence for benefits of rural electrification; they also underscore the importance of realistic forecasts of energy demand growth over time after rural electrification.

The Politics of Technology Bans: Industrial Policy Competition and Green Goals for the Auto Industry

After decades of failure to reduce greenhouse gas emissions in the transport sector, several jurisdictions have in rapid succession announced future goals to phase out sales of internal combustion engine vehicles. This article argues that these announcements are predominantly a form of political signaling in a green industrial policy competition for alternative transport technologies, notably electric vehicles. We show that such signaling games in green industrial policy are likely to emerge when market growth for alternative technologies initiates industrial policy competition, which explains the clustered timing of political signals. A country’s position in the global auto industry, however, shapes the domestic political economy for announcing a phaseout goal. Countries with aspirations to develop export-oriented EV industries seek industrial upgrading; countries with existing export-oriented auto industries promote industrial renewal to maintain international competitiveness; and importing countries pursue phaseout goals primarily for environmental reasons. Our findings suggest that industrial upgraders can induce incumbent producer countries to participate in green industrial policy competition, leading to the “trading up” of energy technology policy goals. This contrasts with classic patterns of environmental policy competition, in which advanced industrialized nations are the pacesetters.