Liquidity Constraints and Willingness to Pay for Solar Lamps and Water Filters in Jakarta

Robert Lensink*, Tom Raster, Angelique Timmer

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

In this study, using the Becker–DeGroot–Marschak mechanism, we assess the Willingness to Pay for water filters and solar lamps in Indonesia. The study shows that credit constraints are important determinants of the low levels of WTP and low adoption rates of preventative health technologies. Providing women with an option to spread out the payments for these products over 50 weekly periods more than doubles the maximum WTP.

Original languageEnglish
Pages (from-to)577-587
JournalEuropean Journal of Development Research
Volume30
Issue number4
DOIs
Publication statusPublished - 1 Sep 2018

Keywords

  • BDM auction
  • economics
  • Indonesia
  • microfinance
  • solar lamps
  • water filters
  • willingness to pay

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