The Welfare Impacts of Rural Electrification in Bangladesh
Lack of access to electricity has been considered a major impediment to the growth and development of rural economies. Thus, the provision of electricity and other forms of modern energy has been a priority for many development organizations, including the World Bank. However, few impact studies of electrification have taken the endogeneity of the grid connection into account. Using a cross-sectional survey conducted in 2005 of 20,900 rural households in Bangladesh, this paper examines the welfare impacts of household access to grid electricity after controlling for endogeneity bias. The econometric analysis shows that grid electrification has significant positive impacts on household income, expenditure, and education. The household gain in total income due to electrification is as high as 21 percent, with a 1.5 percentage point reduction in poverty per year. The results also suggest that the income and expenditure effects of electricity connection are higher for better-off households.
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Volume (Year): Volume 33 (2012)
Issue (Month): Number 1 ()
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References listed on IDEAS
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- Alam, M.S. & Kabir, E. & Rahman, M.M. & Chowdhury, M.A.K., 2004. "Power sector reform in Bangladesh: Electricity distribution system," Energy, Elsevier, vol. 29(11), pages 1773-1783.
- Frölich, Markus & Melly, Blaise, 2008.
"Unconditional Quantile Treatment Effects under Endogeneity,"
IZA Discussion Papers
3288, Institute for the Study of Labor (IZA).
- Markus FrÃ¶lich & Blaise Melly, 2013. "Unconditional Quantile Treatment Effects Under Endogeneity," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 31(3), pages 346-357, July.
- Markus Frölich & Blaise Melly, 2007. "Unconditional quantile treatment effects under endogeneity," CeMMAP working papers CWP32/07, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- Taryn Dinkelman, 2010. "The E ects of Rural Electri cation on Employment: New Evidence from South Africa," Working Papers 1255, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
- repec:pri:rpdevs:dinkelman_electricity_0810 is not listed on IDEAS
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