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Rural Electrification and Manufacturing Firm Performance in Benin – An Ex-Ante Impact Assessment

Author

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

Abstract

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 empirical analysis employs a Propensity Score Matching. While beneficial impacts are found from firm creation after electrification, firms that existed before actually show a non-significantly inferior performance to 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.

Suggested Citation

  • Peters, Jörg & Vance, Colin & Harsdorff, Marek, 2010. "Rural Electrification and Manufacturing Firm Performance in Benin – An Ex-Ante Impact Assessment," Ruhr Economic Papers 189, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:189
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    File URL: https://www.econstor.eu/bitstream/10419/37000/1/629735239.pdf
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    Citations

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    Cited by:

    1. Jörg Peters & Maximiliane Sievert, 2016. "Impacts of rural electrification revisited – the African context," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 8(3), pages 327-345, July.
    2. Jörg Peters & Maximiliane Sievert, 2015. "Impacts of Rural Electrification Revisited – The African Context," Ruhr Economic Papers 0556, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    3. repec:zbw:rwirep:0556 is not listed on IDEAS

    More about this item

    Keywords

    Impact evaluation; propensity score matching; productive electricity use;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O22 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis
    • L69 - Industrial Organization - - Industry Studies: Manufacturing - - - Other

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