Understanding the Economics Behind Off-Grid Lighting Products for Small Businesses in Kenya
UNDERSTANDING THE ECONOMICS BEHIND OFF-GRID LIGHTING PRODUCTS FOR SMALL BUSINESSES IN KENYA By Kristen Radecsky A Thesis Presented to The Faculty of Humboldt State University In Partial Fulfillment Of the Requirements for the Degree Master of Science In Environmental Systems: Energy, Environment, and Society Option May, 2009 UNDERSTANDING THE ECONOMICS BEHIND OFF-GRID LIGHTING PRODUCTS FOR SMALL BUSINESSES IN KENYA By Kristen Radecsky Approved by the Master's Thesis Committee: Dr. Arne Jacobson, Major Professor Date Dr. Charles Chamberlin, Committee Member Date Dr. Steven Hackett, Committee Member Date Dr. Christopher Dugaw, Graduate Coordinator Date Dr. Chris A. Hopper, Dean for Research and Graduate Studies Date ABSTRACT UNDERSTANDING THE ECONOMICS BEHIND OFF-GRID LIGHTING PRODUCTS FOR SMALL BUSINESSES IN KENYA Kristen Radecsky For illumination, many off-grid communities use lighting products such as candles, kerosene-fueled lamps, or dry cell battery-powered lights. Unfortunately, fuel- based and dry cell powered lighting can be expensive, a health hazard and often provides poor quality light. Manufacturers are currently designing rechargeable lighting products using LED technology as an alternative option for lower-income people. I developed a model to analyze the initial and life cycle costs of 19 off-grid lighting products. With the results, I make design recommendations for manufacturers. The analysis is based on product prices, laboratory measurements of product performance, and data about lighting cost and use patterns for small, off-grid businesses in Kenya. The field data were collected by Arne Jacobson, Maina Mumbi, Peter Johnstone and me during 2008. My results indicate that the economics of off-grid lighting using electric lamps depends on the charging mode.
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