Browsing by Author "Salgado, Hugo"
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Item Lesson from a pilot program to induce stove replacements in Chile: design, implementation and evaluation(2017) Gómez, Walter; Chávez, Carlos; Salgado, Hugo; Vásquez, FelipeWe present the design, implementation, and evaluation of a subsidy program to introduce cleaner and more efficient household wood combustion technologies. The program was conducted in the city of Temuco, one of the most polluted cities in southern Chile, as a pilot study to design a new national stove replacement initiative for pollution control. In this city, around 90% of the total emissions of suspended particulate matter is caused by households burning wood. We created a simulated market in which households could choose among different combustion technologies with an assigned subsidy. The subsidy was a relevant factor in the decision to participate, and the inability to secure credit was a significant constraint for the participation of low-income households. Due to several practical difficulties and challenges associated with the implementation of large-scale programs that encourage technological innovation at the household level, it is strongly advisable to start with a small-scale pilot that can provide useful insights into the final design of a fuller, larger-scale program.Item Using Stated Preference Methods to Design Cost-Effective Subsidy Programs to Induce Technology Adoption. An Application to a Stove Program in Southern Chile(School of Business and Economics, Universidad del Desarrollo, 2013-08) Vásquez Lavín, Felipe; Gómez, Walter; Salgado, Hugo; Chávez, CarlosWe study the design of an economic incentive based program –a subsidy- to induce adoption of more efficient technology in a pollution reduction program in southern Chile. Stated preferences methods, contingent valuation (CV), and choice experiment (CE) are used to estimate the probability of adoption and the willingness to share the cost of a new technology by a householdItem Using Stated Preference Methods to Design Cost-Effective Subsidy Programs to Induce Technology Adoption. An Application to a Stove Program in Southern Chile(2014) Gómez, Walter; Salgado, Hugo; Vásquez, Felipe; Chávez, CarlosWe study the design of an economic incentive based program e a subsidy e to induce adoption of more efficient technology in a pollution reduction program in southern Chile. Stated preferences methods, contingent valuation (CV), and choice experiment (CE) are used to estimate the probability of adoption and the willingness to share the cost of a new technology by a household. The cost-effectiveness property of different subsidy schemes is explored numerically for different regulatory objectives. Our results suggest that households are willing to participate in voluntary programs and to contribute by paying a share of the cost of adopting more efficient technologies. We find that attributes of the existing and the new technology, beyond the price, are relevant determinant factors of the participation decision and payment. Limited access to credit markets for low income families can be a major barrier for an effective implementation of these types of programs. Variations in the design of the subsidy and on the regulator’s objective and constraints can have significant impact on the level and the cost of reduction of aggregate emissions achieved.