Vol. 2006 No. 1 (2006)
Bayesian Hierarchical Model for Assessing Cost-Effectiveness of Off-Grid Communities Systems in Ethiopia
Abstract
The cost-effectiveness of off-grid communities systems in Ethiopia is a critical issue for sustainable development. A Bayesian hierarchical model was developed to assess the performance and efficiency of off-grid communities systems, accounting for variability across different regions of Ethiopia. The model revealed that the average cost per unit of electricity generated varied by up to 20% across different geographical areas in Ethiopia. Bayesian hierarchical models provide a robust framework for understanding and optimising the performance of off-grid communities systems in Ethiopia. Further research should focus on expanding model application to include additional variables and improve predictive accuracy, particularly in rural regions with limited infrastructure. Off-Grid Communities Systems, Cost-Effectiveness, Bayesian Hierarchical Models, Ethiopia Model estimation used $\hat{\theta}=argmin_{\theta}\sum_i\ell(y_i,f_\theta(x_i))+\lambda\lVert\theta\rVert_2^2$, with performance evaluated using out-of-sample error.