IDEAS home Printed from https://ideas.repec.org/a/sae/jouinf/v12y2020i1p7-24.html
   My bibliography  Save this article

Assessing the Effects of Rural Electrification on Household Welfare in Nigeria

Author

Listed:
  • Iyabo Adeola Olanrele

Abstract

A rural electrification (RE) strategy was adjudged as a means of extending electricity to unserved and underserved communities to bring about rural transformation and development. This study investigates the effect of Oyo State RE on household welfare indicators such as monthly income and per capita expenditure. Household survey data collected from the Nigerian Institute of Social And Economic Research (NISER) 2017 field survey were employed. Access to grid electricity increases household income by about 1.3 per cent. Although the coefficient was correctly signed, it was not significant. This outcome could be a result of constant electricity supply outages, which is strongly explained by the positive affirmation of 71 per cent of the respondents. Access to grid electricity increases household per capita monthly expenditure by about 6.4 per cent. Expenditure on electricity equally increases monthly per capita expenditure by about 4 per cent and is statistically significant at 1 per cent. Due to rapid decline in the cost of technology, mini-grid and off-grid systems have become viable options for extending electricity access that is more reliable, and hence has more economic benefits. JEL Classification: I31

Suggested Citation

  • Iyabo Adeola Olanrele, 2020. "Assessing the Effects of Rural Electrification on Household Welfare in Nigeria," Journal of Infrastructure Development, India Development Foundation, vol. 12(1), pages 7-24, June.
    • Handle: RePEc:sae:jouinf:v:12:y:2020:i:1:p:7-24
    DOI: 10.1177/0974930619892742
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0974930619892742
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0974930619892742?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Mary Morrison & Marianne Fay, 2005. "Infrastructure in Latin America : Recent Developments and Key Challenges, Volume 1," World Bank Publications - Reports 8801, The World Bank Group.
    2. Taryn Dinkelman, 2011. "The Effects of Rural Electrification on Employment: New Evidence from South Africa," American Economic Review, American Economic Association, vol. 101(7), pages 3078-3108, December.
    3. Estache, Antonio, 2004. "Emerging infrastructure policy issues in developing countries - a survey of the recent economic literature," Policy Research Working Paper Series 3442, The World Bank.
    4. Briceno-Garmendia, Cecilia & Estache, Antonio & Shafik, Nemat, 2004. "Infrastructure services in developing countries : access, quality, costs and policy reform," Policy Research Working Paper Series 3468, The World Bank.
    5. Alam, Majbaul & Bhattacharyya, Subhes, 2017. "Are the off-grid customers ready to pay for electricity from the decentralized renewable hybrid mini-grids? A study of willingness to pay in rural Bangladesh," Energy, Elsevier, vol. 139(C), pages 433-446.
    6. Shahidur R. Khandker & Douglas F. Barnes & Hussain A. Samad, 2013. "Welfare Impacts of Rural Electrification: A Panel Data Analysis from Vietnam," Economic Development and Cultural Change, University of Chicago Press, vol. 61(3), pages 659-692.
    7. Oladele I. Osanyinlusi & Bola A. Awotide & Taiwo T. Awoyemi & Adebayo I. Ogunniyi & Adeyemi A. Ogundipe, 2017. "An Evaluation of Rural Electrification and Households Poverty in Ikole Local Government Area, Ekiti State, Nigeria: An Foster, Greer and Thorbecke Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 7(3), pages 24-30.
    8. Straub, Stephane & Vellutini, Charles & Warlters, Michael, 2008. "Infrastructure and economic growth in East Asia," Policy Research Working Paper Series 4589, The World Bank.
    9. Barnes, Douglas F. & Khandker, Shahidur R. & Samad, Hussain A., 2010. "Energy access, efficiency, and poverty : how many households are energy poor in Bangladesh ?," Policy Research Working Paper Series 5332, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Obsa Urgessa Ayana & Jima Degaga, 2022. "Effects of rural electrification on household welfare: a meta-regression analysis," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 69(2), pages 209-261, June.
    2. Brian Piper, 2014. "Factor-Specific Productivity," Working Papers 1401, Sam Houston State University, Department of Economics and International Business.
    3. Bensch, Gunther & Gotz, Gunnar & Peters, Jörg, 2020. "Effects of rural electrification on employment: A comment on Dinkelman (2011)," Ruhr Economic Papers 840, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    4. Céline Nauges & Jon Strand, 2017. "Water Hauling and Girls’ School Attendance: Some New Evidence from Ghana," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 66(1), pages 65-88, January.
    5. Fujii, Tomoki & Shonchoy, Abu S., 2020. "Fertility and rural electrification in Bangladesh," Journal of Development Economics, Elsevier, vol. 143(C).
    6. Bayer, Patrick & Kennedy, Ryan & Yang, Joonseok & Urpelainen, Johannes, 2020. "The need for impact evaluation in electricity access research," Energy Policy, Elsevier, vol. 137(C).
    7. Santosh Kumar & Ganesh Rauniyar, 2018. "The impact of rural electrification on income and education: Evidence from Bhutan," Review of Development Economics, Wiley Blackwell, vol. 22(3), pages 1146-1165, August.
    8. Briggs, Ryan C., 2021. "Power to which people? Explaining how electrification targets voters across party rotations in Ghana," World Development, Elsevier, vol. 141(C).
    9. Gupta, Ridhima & Pelli, Martino, 2021. "Electrification and cooking fuel choice in rural India," World Development, Elsevier, vol. 146(C).
    10. Jevgenijs Steinbuks, 2008. "Financial constraints and firms' investment: results of a natural experiment measuring firm response to power interruption," Working Papers EPRG 0823, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    11. Michael Grimm & Anicet Munyehirwe & Jörg Peters & Maximiliane Sievert, 2017. "A First Step up the Energy Ladder? Low Cost Solar Kits and Household’s Welfare in Rural Rwanda," The World Bank Economic Review, World Bank, vol. 31(3), pages 631-649.
    12. Diallo, Arouna & Moussa, Richard K., 2020. "The effects of solar home system on welfare in off-grid areas: Evidence from Côte d’Ivoire," Energy, Elsevier, vol. 194(C).
    13. Kenneth Lee & Edward Miguel & Catherine Wolfram, 2020. "Does Household Electrification Supercharge Economic Development?," Journal of Economic Perspectives, American Economic Association, vol. 34(1), pages 122-144, Winter.
    14. Elodie Djemai & Andrew E. Clark & Conchita D'Ambrosio, 2020. "Take the Highway? Paved Roads and Well-Being in Africa," Working Papers DT/2020/11, DIAL (Développement, Institutions et Mondialisation).
    15. Meles, Tensay Hadush, 2020. "Impact of power outages on households in developing countries: Evidence from Ethiopia," Energy Economics, Elsevier, vol. 91(C).
    16. Aditi Bhattacharyya & Daisy Das & Arkadipta Ghosh, 2017. "Electrification and Welfare of Poor Households in Rural India," Working Papers 1702, Sam Houston State University, Department of Economics and International Business.
    17. Barron, Manuel & Torero, Maximo, 2017. "Household electrification and indoor air pollution," Journal of Environmental Economics and Management, Elsevier, vol. 86(C), pages 81-92.
    18. Amin, Sakib Bin & Chowdhury, Mainul Islam & Jamasb, Tooraj & Khan, Farhan & Nepal, Rabindra, 2023. "Green Energy Finance and Gender Disparity: The Case of Mountain Areas in Bangladesh," Working Papers 2-2023, Copenhagen Business School, Department of Economics.
    19. Stephane Straub, 2008. "Infrastructure and Growth in Developing Countries: Recent Advances and Research Challenges," Edinburgh School of Economics Discussion Paper Series 179, Edinburgh School of Economics, University of Edinburgh.
    20. Meriggi, Niccolò F. & Bulte, Erwin & Mobarak, Ahmed Mushfiq, 2021. "Subsidies for technology adoption: Experimental evidence from rural Cameroon," Journal of Development Economics, Elsevier, vol. 153(C).

    More about this item

    Keywords

    Rural electrification; household; welfare; Nigeria;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:jouinf:v:12:y:2020:i:1:p:7-24. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.idfresearch.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.