Determinants of household adoption of solar energy technology in rural Ethiopia

Environmental problems and health risks stemming from the household use of traditional fuels remain a significant challenge for households living in poverty in developing countries. This paper applies a logit model to analyze the driving factors of a household's decision regarding the adoption of solar energy technology. To do this, the study uses cross-sectional data collected from two kebeles in the neighborhoods of Woliso, a town of Oromia regional state in central Ethiopia. The results reveal that a great number of factors were found to have positive effect on solar energy technology adoption. The findings of this paper establish that wealthy and more educated households are more likely to adopt solar energy technology compared to poorer ones. Male-headed households are less likely to adopt solar energy technology compared to female-headed counterparts. The main implication of this study is that there is a scope for poverty reduction policies and adult education that targets household heads and spouses to promote adoption of solar energy technology. Therefore, policymakers could target appropriate measures in order to improve household wealth, education, and awareness. In this way, there is a much higher chance for them to successfully promote solar energy use by rural households.