Development and Assessment of Business Model Innovation to Increase Adoption of Longer Lasting Electric Three Wheeler Batteries in Bangladesh

Last registered on July 29, 2024

Pre-Trial

General Information

Title

RCT ID

AEARCTR-0014061

Initial registration date

July 22, 2024

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published

July 29, 2024, 5:12 PM EDT

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Locations

Country

Bangladesh

Region

Primary Investigator

Name

Amrita Kundu

Affiliation

Georgetown University

Contact Primary Investigator

Other Primary Investigator(s)

PI Name

Erica Plambeck

PI Affiliation

Stanford Graduate School of Business

Contact Investigator

Additional Trial Information

Status

In development

Start date

2024-08-25

End date

2026-05-15

Keywords

Environment & Energy, Firms & Productivity

Additional Keywords

electric vehicles, circular economy, lead poisoning, business models

JEL code(s)

Secondary IDs

Prior work

This trial does not extend or rely on any prior RCTs.

Abstract

Lead poisoning, largely due to informal recycling of lead acid batteries from vehicles, causes widespread health problems, cognitive disabilities, violent crime and lost economic productivity. In Bangladesh, lead emissions are increasing with adoption of electric three wheelers powered by lead acid batteries. Our research shows that batteries in the market are very low quality with very short life, increasing the rate of informal recycling and associated lead emissions. To increase adoption of high quality long lasting lead and lithium batteries, we have developed new business models that we will tests in a randomized framework in partnership with a large microfinance organization and two leading battery manufacturers in Bangladesh. Our study will aim to derive broader academic and policy insights to increase adoption of sustainable and durable goods in developing economies to improve the circular economy of durable goods and reduce toxic pollution from informal recycling of materials.

External Link(s)

Registration Citation

Citation

Kundu, Amrita and Erica Plambeck. 2024. "Development and Assessment of Business Model Innovation to Increase Adoption of Longer Lasting Electric Three Wheeler Batteries in Bangladesh." AEA RCT Registry. July 29. https://doi.org/10.1257/rct.14061-1.0

Sponsors & Partners

Experimental Details

Interventions

Intervention(s)

We have developed two business models to test in the field, to see how our interventions may affect uptake of high quality lead and lithium electric three wheeler batteries in Bangladesh. We will market the business models in two treatment arms that are randomly assigned over a period of 8 months.

In the first treatment arm, we will market the high quality batteries with the provision to buy the batteries on loan.

In the second treatment arm, we will market the high quality batteries with a lease option from the manufacturer.

Intervention Start Date

2024-09-15

Intervention End Date

2025-05-15

Primary Outcomes

Primary Outcomes (end points)

battery uptake, battery performance, income generated, warranty and service issues, payment collected

Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)

Secondary Outcomes (explanation)

Experimental Design

We are conducting a randomized control trial in electric three wheeler garages in Bangladesh, where we are providing access to high quality longer lasting batteries, directly sold from manufacturers to customers using different financing methods - upfront purchase, loan and lease. We will assess the impact of these different business models in changing the rate of uptake of high quality longer lasting batteries, how it affects battery and vehicle performance and income of the owners over time.

Experimental Design Details

Not available

Randomization Method

Randomization done in office by a computer.

Randomization Unit

Vehicle garage

Was the treatment clustered?

Yes

Experiment Characteristics

Sample size: planned number of clusters

300 garages in total.

Sample size: planned number of observations

At least 1200 vehicle owners in the study garages.

Sample size (or number of clusters) by treatment arms

100 garages in control, 100 garages in battery-on-loan arm, 100 garages in battery-on-rent arm

Minimum detectable effect size for main outcomes (accounting for sample design and clustering)

Supporting Documents and Materials

IRB

Institutional Review Boards (IRBs)

IRB Name

IRB Approval Date

IRB Approval Number

Analysis Plan