This paper discusses a case study of the energy lending programme of
the Foundation for International Community Assistance (FINCA)-Uganda. It addresses two questions. First, it investigates whether
FINCA can alter the energy transition of its clients by providing loans
for solar lanterns.
Through an industry analysis, including a
contingent valuation survey of FINCA's borrowers, barriers to the
diffusion of solar lanterns in rural Uganda are identified, and
strategies to overcome them are proposed.
Second, this paper examines the potential for FINCA to generate carbon credits through the diffusion of solar lanterns. Potential sources of carbon revenues were assessed including voluntary markets, through the company MicroEnergy Credits, and the Clean Development Mechanism.
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Promoting diffusion of solar lanterns through microfinance and carbon finance
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James Ryan Hogarth