SMEs and technology adoption: renewable power for electricity reliability

Last registered on September 17, 2024
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Pre-Trial

Trial Information

General Information

Title
SMEs and technology adoption: renewable power for electricity reliability
RCT ID
AEARCTR-0014119
Initial registration date
September 12, 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
September 17, 2024, 11:53 AM EDT

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

Locations

Country
Sierra Leone
Region
Freetown

Primary Investigator

Name
Alice Mével
Affiliation
Paris School of Economics
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Other Primary Investigator(s)

PI Name
Niccolo F. Merrigi
PI Affiliation
University of Oxford
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PI Name
Maarten Voors
PI Affiliation
Wageningen University & Research
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Additional Trial Information

Status
On going
Start date
2024-09-02
End date
2024-11-15
Keywords
Environment & Energy, Firms & Productivity
Additional Keywords
JEL code(s)
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
Fewer than 1/3 of firms in sub-Saharan Africa have access to reliable electricity, creating substantial private and social costs.
Clean power generation from low emission technologies present an opportunity to preserve the benefits from increased access to reliable energy and the resultant growth, whilst minimizing the associated environmental costs.
We partner with a Sierra Leonese off-grid distributor, EasySolar, to test demand for 2kW, 2kWh battery, solar generators among SMEs (small and medium enterprises) in the Freetown area using a Becker-DeGroot-Marschak (BDM) mechanism. Specifically, we test the impact of providing firms with a line of credit on demand for these generators.
External Link(s)

Registration Citation

Citation
Merrigi, Niccolo F., Alice Mével and Maarten Voors. 2024. "SMEs and technology adoption: renewable power for electricity reliability." AEA RCT Registry. September 17. https://doi.org/10.1257/rct.14119-1.0
Sponsors & Partners

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Experimental Details

Interventions

Intervention(s)
We study the effect of extending a line of credit on willingness to pay for a solar generator among SMEs in Freetown, Sierra Leone. The line of credit is a 12-month credit plan. SMEs pay for the deposit (approximately 15% of total cost) prior to installation, followed by 11 equally-sized monthly repayments. SMEs may choose to pay for the solar generator more quickly than the 12-month plan if they wish.
Intervention Start Date
2024-09-17
Intervention End Date
2024-10-16

Primary Outcomes

Primary Outcomes (end points)
Willingness to pay
Primary Outcomes (explanation)
Using a BDM mechanism

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
- Control (T0): SMEs pay the full cash price of the solar generator prior to installation.
-Treatment (T1): SMEs are given the opportunity to pay for the solar generator with the 12-month credit plan.
Experimental Design Details
Not available
Randomization Method
randomization done in office by a computer
Randomization Unit
SME
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
NA
Sample size: planned number of observations
500 SMEs (planned)
Sample size (or number of clusters) by treatment arms
250 SMEs (planned)
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Supporting Documents and Materials
IRB

Institutional Review Boards (IRBs)

IRB Name
PSE IRB
IRB Approval Date
2024-07-05
IRB Approval Number
2024-032
IRB Name
Office of the Sierra Leone Ethics and Scientific Review Committee
IRB Approval Date
2024-07-18
IRB Approval Number
022/07/2024
Analysis Plan

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