Despite the rising popularity in the adoption and usage of prepayment meters, little is still known about the drivers of its adoption. We examine the willingness to adopt prepayment metering (PPM) for a sample of Nigerian households that were not prepayment users. Double-hurdle models were estimated to account for households’ decisions concerning billing system switching behaviour and households’ willingness to pay (WTP). The estimated results revealed that decisions to adopt a prepayment meter are significantly affected by current electricity spending, current billing method and the split incentive problem. Whereas current electricity spending significantly increased the tendency to adopt PPM, the split incentive problem reduced the probability of adoption. Although unmetered consumers were more likely to express a willingness to adopt a PPM system than post-paid customers, they did not intend to pay a significantly higher amount to obtain the prepayment service. Income did not play a significant role in decision-making concerning PPM adoption and the corresponding WTP amount. These results cast doubt on the validity of the widely held belief that low income may be responsible for PPM adoption, reflecting the widespread usage of PPM by low-income households.
Energy Policy – Elsevier
Published: Nov 1, 2015
It’s your single place to instantly
discover and read the research
that matters to you.
Enjoy affordable access to
over 12 million articles from more than
10,000 peer-reviewed journals.
All for just $49/month
Read as many articles as you need. Full articles with original layout, charts and figures. Read online, from anywhere.
Keep up with your field with Personalized Recommendations and Follow Journals to get automatic updates.
It’s easy to organize your research with our built-in tools.
Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.
All the latest content is available, no embargo periods.
“Hi guys, I cannot tell you how much I love this resource. Incredible. I really believe you've hit the nail on the head with this site in regards to solving the research-purchase issue.”Daniel C.
“Whoa! It’s like Spotify but for academic articles.”@Phil_Robichaud
“I must say, @deepdyve is a fabulous solution to the independent researcher's problem of #access to #information.”@deepthiw
“My last article couldn't be possible without the platform @deepdyve that makes journal papers cheaper.”@JoseServera