Biogas technology adoption and household welfare perspectives for sustainable development

Abstract

Despite the paramount importance of the United Nations' Sustainable Development Goals (SDGs), particularly affordable and sustainable energy (i.e., SDG-7), the existing literature largely overlooked the household welfare gains associated with biogas. Using survey data from 971 Pakistani rural households, we employed probit regression to estimate the determinants of biogas production technology (BGPT) adoption and propensity score matching to predict the household welfare contributions of BGPT. Our results indicate that (i) a positive shock to formal and informal credit borrowing increases the likelihood of BGPT adoption by agricultural households, with informal credit borrowing showing twice the influence of formal credit. (ii) Agricultural households perceive the BGPT as a cost-ineffective solution; however, households’ aesthetic preferences are neutral in BGPT adoption. Regarding the household welfare perspectives of biogas adoption, (iii) adopter households have reduced fuel collection time and additional labor time and exhibit larger crop gains and organic food supply than nonadopters. (iv) BGPT-adopting households are likely to spend less on healthcare, indicating a lower likelihood of falling ill. Finally, (v) adopters are less likely to harm the environment as they use less firewood and fossil fuels. Based on empirical results, our policy implications contribute to multiple SDGs.