Differentiated willingness to pay Sample Clauses

Differentiated willingness to pay. Willingness to pay varies across provinces Indonesia is a very diverse country, with 34 different regions and a great number of islands. The demographic and economic situation varies significantly between the different provinces. This also means that the willingness and ability to pay for solar energy varies from one province to the other. Indeed, a market survey realized by the World Bank in 2001 showed that 3 Indonesian regions demonstrate a better ability to pay on average. These three regions are the province of West Java (Jawa Barat), Lampung (South Sumatera), and South Sulawesi. Regional variations should thus be taken into account when designing a subsidy policy. Willingness to pay varies across socioeconomic levels Within a particular village, willingness to pay for solar energy may vary greatly too according to the socioeconomic levels of the people. This is already demonstrated by the World Bank survey (2001), which identified that on average 15% of rural households in a village (in wealthier provinces) would be willing to buy a SHS at a fully commercial price, under a credit scheme. These 15% represent the wealthier segment of the population within the village. Poorer populations will need greater support in order to be able to purchase a SHS. The market for solar energy can indeed be divided into different segments: ▪ Poor rural populations, with a limited ability and willingness to pay. Among this population segment, some households might still be able to afford becoming owners of small SHS under scenario 1 (IDCOL financial model), while others will not have the capacity to do so and should be provided support from the government under scenario 2 (pay-for-service model). ▪ Wealthier rural populations, with a greater ability and willingness to pay, and who could even increasingly be interested in buying bigger systems (100-200 Wp), which can run TVs and other devices, provided suitable and affordable consumers credit scheme is available. This segment would be able to afford SHS under scenario 1 credit schemes. ▪ Microentrepreneurs, whose willingness to pay can be relatively high if they expect a direct economic benefit from accessing solar energy (increase in their activity thanks to extended work hours, efficiency gains thanks to upgraded technologies). This segment would be able to afford SHS under scenario 1 credit schemes. ▪ Communities: in some not-so-poor villages with a quite high density of housing, communities may be willing to pay for...
Sample 1
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