Development Effects of Electrification: Evidence from the Geologic Placement of Hydropower Plants in Brazil
AbstractWe estimate the development effects of electrification across Brazil over the period 1960-2000. Brazil relies almost exclusively on hydropower, which requires intercepting water at high velocity. We build an engineering model which takes as inputs only geography (river gradient, water flow and Amazon) and simulates a time series of hypothetical electricity grids for Brazil that show how the grid would have evolved had infrastructure investments been made based solely on geologic cost considerations, ignoring all demand-side concerns. Using the model as an instrument, we document large positive effects of electrification on development that are underestimated when one fails to account for the political allocation of infrastructure projects or its targeting to under-developed areas. Broad-based improvement in labor productivity across sectors and areas rather than general equilibrium re-sorting (in-migration to electrified counties) appears to be the likely mechanism by which these development gains are realized.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 8427.
Date of creation: Jun 2011
Date of revision:
Contact details of provider:
Postal: Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Canning, David & Bennathan, Esra, 2000. "The social rate of return on infrastructure investments," Policy Research Working Paper Series 2390, The World Bank.
- Jeremy Atack & Fred Bateman & Michael Haines & Robert A. Margo, 2009.
"Did Railroads Induce or Follow Economic Growth? Urbanization and Population Growth in the American Midwest, 1850-60,"
NBER Working Papers
14640, National Bureau of Economic Research, Inc.
- Jeremy Atack & Fred Bateman & Michael Haines & Robert A. Margo, 2009. "Did Railroads Induce Or Follow Economic Growth? Urbanization And Population Growth In The American Midwest, 1850-60," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-178, Boston University - Department of Economics.
- Paul Schultz, T., 2004. "School subsidies for the poor: evaluating the Mexican Progresa poverty program," Journal of Development Economics, Elsevier, vol. 74(1), pages 199-250, June.
- Chandra, Amitabh & Thompson, Eric, 2000. "Does public infrastructure affect economic activity?: Evidence from the rural interstate highway system," Regional Science and Urban Economics, Elsevier, vol. 30(4), pages 457-490, July.
- Javier Escobal & Máximo Torero, 2005. "Measuring the Impact of Asset Complementarities: The Case of Rural Peru," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 42(125), pages 137-164.
- María Teresa Ramírez & Hadi Salehi Esfahani, 1999.
"Infraestructure And Economic Growth,"
BORRADORES DE ECONOMIA
002876, BANCO DE LA REPÚBLICA.
- Parker, Susan W. & Rubalcava, Luis & Teruel, Graciela, 2008. "Evaluating Conditional Schooling and Health Programs," Handbook of Development Economics, Elsevier.
- Olivier Cadot & Lars-Hendrik Röller & Andreas Stephan, 2004.
"Contribution to Productivity or Pork Barrel?: The Two Faces of Infrastructure Investment,"
Discussion Papers of DIW Berlin
458, DIW Berlin, German Institute for Economic Research.
- Cadot, Olivier & Roller, Lars-Hendrik & Stephan, Andreas, 2006. "Contribution to productivity or pork barrel? The two faces of infrastructure investment," Journal of Public Economics, Elsevier, vol. 90(6-7), pages 1133-1153, August.
- Olivier Cadot & Lars-Hendrik Röller & Andreas Stephan, 2002. "Contribution to Productivity or Pork Barrel? The Two Faces of Infrastructure Investment," CIG Working Papers FS IV 02-09, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
- repec:feb:natura:0004 is not listed on IDEAS
- Abhijit Banerjee & Esther Duflo & Nancy Qian, 2012.
"On the Road: Access to Transportation Infrastructure and Economic Growth in China,"
NBER Working Papers
17897, National Bureau of Economic Research, Inc.
- Abhijit Banerjee & Esther Duflo & Nancy Qian, 2012. "On the Road: Access to Transportation Infrastructure and Economic Growth in China," Working Papers id:4826, eSocialSciences.
- Banerjee, Abhijit & Duflo, Esther & Qian, Nancy, 2012. "On the Road: Access to Transportation Infrastructure and Economic Growth in China," CEPR Discussion Papers 8874, C.E.P.R. Discussion Papers.
- Antonio Estache, 2010. "A survey of impact evaluations of infrastructure projects, programs and policies," Working Papers ECARES 2010_005, ULB -- Universite Libre de Bruxelles.
- Wolfram Schlenker & W. Michael Hanemann & Anthony C. Fisher, 2006. "The Impact of Global Warming on U.S. Agriculture: An Econometric Analysis of Optimal Growing Conditions," The Review of Economics and Statistics, MIT Press, vol. 88(1), pages 113-125, February.
- Lucas W. Davis, 2004. "The Effect of Health Risk on Housing Values: Evidence from a Cancer Cluster," American Economic Review, American Economic Association, vol. 94(5), pages 1693-1704, December.
- Alby, Philippe & Dethier, Jean-Jacques & Straub, Stéphane, 2011.
"Let there be Light! Firms Operating under Electricity Constraints in Developing Countries,"
IDEI Working Papers
686, Institut d'Économie Industrielle (IDEI), Toulouse.
- Alby, Philippe & Dethier, Jean-Jacques & Straub, Stéphane, 2011. "Let there be Light! Firms Operating under Electricity Constraints in Developing Countries," TSE Working Papers 11-255, Toulouse School of Economics (TSE).
- Rao, Narasimha D., 2013. "Does (better) electricity supply increase household enterprise income in India?," Energy Policy, Elsevier, vol. 57(C), pages 532-541.
- Ujjayant Chakravorty & Martino Pelli & Beyza Ural Marchand, 2013.
"Does the Quality of Electricity Matter? Evidence from Rural India,"
Cahiers de recherche
13-05, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
- Ujjayant Chakravorty & Martino Pelli & Beyza Ural Marchand, 2013. "Does the Quality of Electricity Matter? Evidence from Rural India," CESifo Working Paper Series 4457, CESifo Group Munich.
- Ujjayant Chakravorty & Martino Pelli & Beyza Ural Marchand, 2014. "Does the Quality of Electricity Matter? Evidence from Rural India," Working Papers 2014.11, Fondazione Eni Enrico Mattei.
- Gray, Rowena, 2013.
"Taking technology to task: The skill content of technological change in early twentieth century United States,"
Explorations in Economic History,
Elsevier, vol. 50(3), pages 351-367.
- Rowena Gray, 2011. "Taking Technology to Task: The Skill Content of Technological Change in Early Twentieth Century United States," Working Papers 0009, European Historical Economics Society (EHES).
- Karen Fisher-Vanden & Erin T. Mansur & Qiong (Juliana) Wang, 2012. "Costly Blackouts? Measuring Productivity and Environmental Effects of Electricity Shortages," NBER Working Papers 17741, National Bureau of Economic Research, Inc.
- Kumar, Santosh & Rauniyar, Ganesh, 2011. "Is electrification welfare improving?: non-experimental evidence from rural Bhutan," MPRA Paper 31482, University Library of Munich, Germany.
- Lars-Erik Borge & Pernille Parmer & Ragnar Torvik, 2013.
"Local Natural Resource Curse?,"
0014, Centre for Applied Macro- and Petroleum economics (CAMP), BI Norwegian Business School.
- Grogan, Louise & Sadanand, Asha, 2013.
"Rural Electrification and Employment in Poor Countries: Evidence from Nicaragua,"
Elsevier, vol. 43(C), pages 252-265.
- Louise Grogan, 2013. "Rural Electrification and Employment in Poor Countries: Evidence from Nicaragua," Working Papers 1303, University of Guelph, Department of Economics and Finance.
- Catherine Wolfram & Orie Shelef & Paul J. Gertler, 2012.
"How Will Energy Demand Develop in the Developing World?,"
NBER Working Papers
17747, National Bureau of Economic Research, Inc.
- Catherine Wolfram & Orie Shelef & Paul Gertler, 2012. "How Will Energy Demand Develop in the Developing World?," Journal of Economic Perspectives, American Economic Association, vol. 26(1), pages 119-38, Winter.
- 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.
- Alby, Philippe & Dethier, Jean-Jacques & Straub, Stephane, 2010. "Firms operating under infrastructure and credit constraints in developing countries : the case of power generators," Policy Research Working Paper Series 5497, The World Bank.
- Alan Fuchs & Paul Gertler & Orie Shelef & Catherine Wolfram, 2013. "Poverty, Growth and the Demand for Energy-Using Assets," Discussion Papers 13-004, Stanford Institute for Economic Policy Research.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.