—The study aims at testing the proposition that how
outreach of financial institutions as well as the access to
information about alternate sources of energy affect inclination
towards energy substitutability, significantly or insignificantly.
Furthermore, the study also tests a second hypothesis that
government’s decision to associate income tax with level of
energy consumption from electricity distribution companies will
affect agriculturalist’s inclination to comply for the process of
energy substitutability. Important stimuli for energy
preferences such as information regarding alternate sources of
energy and installment costs of efficient photovoltaic energy
systems on the farm are also incorporated. Generalized Method
of Moments was used to comprehensively establish the
relationship between outreach of financial institutions as well as
access to information about energy substitutability, upon the
intent of farmers to switch towards other sources of energy. The
results show that the policy to link energy consumption and
income tax can be a good policy tool to ensure that the ongoing
process of energy substitutability is sustainable in the long term.
A need for state sponsored micro finance schemes as well as the
provision of Amber & Green Subsidy, can create ease for
farmers in attaining photo voltaic energy systems to ensure
energy efficient solutions. Robust regression was used keeping in
view the apprehension about the possible existence of
heteroscedasticity in cross sectional data. Furthermore it can
also be used in order to identify important observations.
—Energy efficiency, financial exclusion,
technology information, robust regression.
The authors are with the Lahore School of Economics, Lahore, Pakistan
(e-mail: email@example.com, firstname.lastname@example.org).
Cite: Syed Toqueer Akhther and Raja Ramz Ullah, "Outreach of Financial Institutions, Access to Information and Energy Substitutability: A Case for Photovoltaic Energy Preferences in Agriculture Sector of Pakistan," International Journal of Environmental Science and Development vol. 7, no. 8, pp. 621-629, 2016.