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Grid Extension in Rural Benin: Micro-Manufacturers and the Electrification Trap

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  • Peters, Jörg
  • Vance, Colin
  • Harsdorff, Marek

Abstract

Summary Productive electricity use is widely believed to contribute to positive impacts of electrification projects. This paper investigates these impacts by comparing the performance of micro manufacturing enterprises in grid-covered and non-covered villages in Northern Benin. Using firm-level data, the analysis employs Propensity Score Matching techniques to measure differences in profits according to a grid-connection. Although beneficial impacts are found from firm creation following electrification, firms that existed before electrification perform no better than their matched counterparts from a non-electrified region. Complementary measures that sensitize firms about the implications of a grid connection are recommended as important features of program design.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 39 (2011)
Issue (Month): 5 (May)
Pages: 773-783

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Handle: RePEc:eee:wdevel:v:39:y:2011:i:5:p:773-783

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Web page: http://www.elsevier.com/locate/worlddev

Related research

Keywords: impact evaluation propensity score matching productive electricity use Benin Africa;

References

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  1. Joachim Wagner, 2007. "Enty, Exit and Productivitry - Empirical Results for German Manufacturing Industries," Working Paper Series in Economics 44, University of Lüneburg, Institute of Economics.
  2. Becerril, Javier & Abdulai, Awudu, 2010. "The Impact of Improved Maize Varieties on Poverty in Mexico: A Propensity Score-Matching Approach," World Development, Elsevier, vol. 38(7), pages 1024-1035, July.
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  6. Mandelman, Federico S. & Montes-Rojas, Gabriel V., 2009. "Is Self-employment and Micro-entrepreneurship a Desired Outcome?," World Development, Elsevier, vol. 37(12), pages 1914-1925, December.
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  11. Marek Harsdorff & Jörg Peters, 2010. "On-Grid Rural Electrification in Benin – A Socio-economic Baseline Study on a GTZ Project," RWI Materialien, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, pages 64, 04.
  12. John Victor Mensah & Michael Tribe & John Weiss, 2007. "The small-scale manufacturing sector in Ghana: a source of dynamism or of subsistence income?," Journal of International Development, John Wiley & Sons, Ltd., vol. 19(2), pages 253-273.
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  15. Masakure, Oliver & Cranfield, John & Henson, Spencer, 2008. "The Financial Performance of Non-farm Microenterprises in Ghana," World Development, Elsevier, vol. 36(12), pages 2733-2762, December.
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  17. Fernandes, Ana Margarida, 2006. "Firm Productivity in Bangladesh Manufacturing Industries," Policy Research Working Paper Series 3988, The World Bank.
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Citations

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Cited by:
  1. Gunther Bensch, & Jochen Kluve & Jörg Peters, 2011. "Impacts of Rural Electrifi cation in Rwanda," Ruhr Economic Papers 0284, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  2. Bensch, Gunther & Peters, Jörg & Schmidt, Christoph M., 2012. "Impact evaluation of productive use—An implementation guideline for electrification projects," Energy Policy, Elsevier, vol. 40(C), pages 186-195.
  3. Gunther Bensch & Jörg Peters & Maximiliane Sievert, 2012. "Fear of the Dark? – How Access to Electric Lighting Affects Security Attitudes and Nighttime Activities in Rural Senegal," Ruhr Economic Papers 0369, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  4. Matinga, Margaret Njirambo & Annegarn, Harold J., 2013. "Paradoxical impacts of electricity on life in a rural South African village," Energy Policy, Elsevier, vol. 58(C), pages 295-302.

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