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Who Benefits Most from Rural Electrification? Evidence in India

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  • Khandker, Shahidur R.
  • Samad, Hussain A.
  • Ali, Rubaba
  • Barnes, Douglas F.

Abstract

This paper applies an econometric analysis to estimate the average and distribution benefits of rural electrification using rich household survey data from India. The results support that rural electrification helps to reduce time allocated to fuelwood collection by household members and increases time allocated to studying by boys and girls. Rural electrification also increases labor supply of men and women, schooling of boys and girls, household per capita income and expenditure. Electrification also helps reduce poverty. But the larger share of benefits accrues to wealthier rural households, with poorer ones having a more limited use of electricity. The analysis also shows that restricted supply of electricity, due to frequent power outages, negatively affects both household electricity connection and its consumption, thereby reducing the expected benefits of rural electrification.

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Bibliographic Info

Paper provided by Agricultural and Applied Economics Association in its series 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington with number 125090.

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Date of creation: 2012
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Handle: RePEc:ags:aaea12:125090

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Keywords: Consumer/Household Economics; Resource /Energy Economics and Policy;

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  1. Oriana Bandiera & Imran Rasul, 2002. "Social Networks and Technology Adoption in Northern Mozambique," STICERD - Development Economics Papers - From 2008 this series has been superseded by Economic Organisation and Public Policy Discussion Papers 35, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
  2. Cust, J. & Singh, A. & Neuhoff, K., 2007. "Rural Electrification in India: Economic and Institutional aspects of Renewables," Cambridge Working Papers in Economics 0763, Faculty of Economics, University of Cambridge.
  3. 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.
  4. Markus Frölich & Blaise Melly, 2013. "Unconditional Quantile Treatment Effects Under Endogeneity," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 31(3), pages 346-357, July.
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Cited by:
  1. Henrik Hansen & Neda Trifković, 2013. "Food Standards are Good – for Middle-Class Farmers," IFRO Working Paper 2013/19, University of Copenhagen, Department of Food and Resource Economics.
  2. van de Walle, Dominique & Ravallion, Martin & Mendiratta, Vibhuti & Koolwal, Gayatri, 2013. "Long-term impacts of household electrification in rural India," Policy Research Working Paper Series 6527, The World Bank.
  3. Rao, Narasimha D., 2013. "Does (better) electricity supply increase household enterprise income in India?," Energy Policy, Elsevier, vol. 57(C), pages 532-541.

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