Social Network, Neighbourhood Effect, Financial Inclusion and Adoption of Solar Photovoltaic in Households of Uganda.
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Date
2022-03-25
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Makerere University Business School
Abstract
The purpose of this study was to establish factors influencing adoption of solar photovoltaic (PV) in households. The study was guided by three specific objectives (i) to determine the effect of financial inclusion on adoption of solar PV. (ii) to determine the effect of neighbourhood influence on adoption of solar photovoltaic and (iii) to determine the effect of social network tie on adoption of solar photovoltaic. The study used the 2019-2020 Uganda National Household Survey (UNHS 2019/2020) data collected by Uganda Bureau of Statistics (UBOS) with a sample of 13,732 randomly selected households. Quantitative research approaches were employed and the logit regression model was used for to estimate the marginal effects of financial inclusion, neighbourhood effect and social network tie on adoption of solar photovoltaic.
Findings reveal that, financial inclusion has positive (0.036) and statistically significant (p < 0.01) effect on adoption of solar PV. Meaning that, the probability of a household adopting solar and is financially included significantly increases by approximately 4% compared to those who are financially excluded. Neighbourhood effect has positive (0.709) and statistically significant (p < 0.01) influence on adoption of solar PV. Meaning that, the probability of a household adopting solar as a result of neighbourhood effect increases significantly by approximately 71% compared to those in areas with less concentration of solar PV in the neighbourhood. Social network tie has positive (0.061) and statistically significant (p < 0.01). Meaning that, households with members belonging to a social network significantly increases the probability of adopting solar PV by approximately 6% and statistically significant (p < 0.01). the findings suggest that, financial inclusion, Neighbourhood effect and social network, jointly predict about 31% of solar PV adoptions in households. Furthermore, results show that, sex of the household head, household income, size, roof type and residence have a significant positive effect on adoption of solar PV.
The study recommends that; policies to promote adoption of solar PV in households should prioritize financial inclusion. This will enhance financial capability of income constrained households to afford solar PV. Both government and solar companies should leverage on existing social networks to promote solar PV adoption. Similarly, existing adopters in the neighbourhood can used to increase visibility of solar PV systems thereby arousing the interest of potential adopters. Existing interventions should continue to target rural households since solar PV adoption is more of a rural phenomenon. Future studies should consider qualitative research approaches to provide deeper insights into determinants of solar PV adoption
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This is a master's thesis.
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Citation
Tamukedde, J. (2022) Social Network, Neighbourhood Effect, Financial Inclusion and Adoption of Solar Photovoltaic in Households of Uganda. (Unpublished master's dissertation). Makerere University Business School, Kampala, Uganda.