The adoption of consumption technologies under uncertainty: A case of improved stoves in Nepal

This paper uses a household model to examine the adoption and efficient use of a consumption technology, improved stoves in Nepal. Improved stoves are a technological substitute for fuelwood. Therefore, they can act as one control on deforestation. Both adoption and efficient use are uncertain events, as is future household income. Our evidence argues that fuelwood and fuelwood substitute prices, the level of stove efficiency, household income, and demographic characteristics indicative of greater information and wealth are the important indicators of adoption and efficiency.