Replication files for <b>Magnitudes for equitable household energy subsidies: transferable insights from improved cookstoves in developing countries</b>

We therefore investigate the sensitivity of households to subsidies for proposed investments in an improved cooking stove (ICS). Using World Bank microdata from over 16,000 households in eight developing countries, we find that financial inclusion and higher subsidies are key factors promoting willingness to pay for ICSs.

Households with a formal bank account are more likely to intend to purchase an ICS by seven percentage points. We then normatively define equitable subsidies as those which equalise willingness-to-pay probability across economic groups. Next, we calculate equitable subsidy proportions, which give households an equal probability of being willing to pay, when comparing households with a formal bank account to others.