Abstract

The growing energy demand in developing countries gravely influences households and calls for an emergent alternative such as biogas production technology (BPT). This research investigates the households' perception-based influence factors of BPT adoption in an innovation diffusion framework. A structural equation modeling (SEM) analysis is employed on a valid sample of 372 respondents in three districts of Central Punjab province (Pakistan). These questionnaire-based data are collected using random and convenience sampling techniques. The main results are: first, relative advantage, trialability, and observability are revealed to significantly drive BPT adoption, while compatibility and complexity impede the adoption process. Second, the relative advantage turns up the highest-ranked, whereas observability manifests itself as the lowest-ranked factor. Third, the relative advantage and compatibility emerge as the leading driver and bottleneck of BPT adoption, respectively. In closing, policies involving quality enhancement and efficiency improvement of BPT, local market development, the incentivization of households, and the introduction of some schemes to mitigate the investment risk in BPT are recommended.

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