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Development through electrification: Evidence from rural China

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  • Ding, Haoyuan
  • Qin, Cong
  • Shi, Kang

Abstract

This paper estimates the effects of a nation-wide rural electrification program in China using an informative dataset for 2459 Chinese villages. The combined propensity score matching and difference-in-differences approach is adopted to address potential selection bias. Accordingly, the program can significantly increase the net agricultural income per capita of farmers in the targeted villages. Moreover, matching grants with private assets and obligation labor force both can increase the effectiveness of the program. The program also highlights the complementarity between infrastructure and institution, in which the introduction of grassroots democracy will increase the effectivity of the rural electrification program.

Suggested Citation

  • Ding, Haoyuan & Qin, Cong & Shi, Kang, 2018. "Development through electrification: Evidence from rural China," China Economic Review, Elsevier, vol. 50(C), pages 313-328.
    • Handle: RePEc:eee:chieco:v:50:y:2018:i:c:p:313-328
    DOI: 10.1016/j.chieco.2018.04.007
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    Cited by:

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    3. George Kyriakarakos & Athanasios T. Balafoutis & Dionysis Bochtis, 2020. "Proposing a Paradigm Shift in Rural Electrification Investments in Sub-Saharan Africa through Agriculture," Sustainability, MDPI, vol. 12(8), pages 1-19, April.
    4. Wu, Shu, 2020. "The evolution of rural energy policies in China: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 119(C).
    5. Xiao, Han & Zheng, Xinye & Xie, Lunyu, 2022. "Promoting pro-poor growth through infrastructure investment: Evidence from the Targeted Poverty Alleviation program in China," China Economic Review, Elsevier, vol. 71(C).
    6. Su, Fang & Chang, Jiangbo & Li, Xi & Fahad, Shah & Ozturk, Ilhan, 2023. "Assessment of diverse energy consumption structure and social capital: A case of southern Shaanxi province China," Energy, Elsevier, vol. 262(PB).
    7. Yue Wang & Jianmin Cao, 2024. "RETRACTED ARTICLE: Empowering rural development: the socioeconomic impact of energy transition and sustainable agriculture," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-20, April.
    8. Song Yue & Sha Nan, 2018. "Can underdeveloped areas catch up with developed areas in China? Evidence from nighttime light intensity data from outer space," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 8(6), pages 1-5.
    9. Richard S. J. Tol, 2023. "Navigating the energy trilemma during geopolitical and environmental crises," Papers 2301.07671, arXiv.org.
    10. Magbondé, Kadoukpè Gildas & Reilly, Barry & Kauma, Bridget, 2024. "The distributional effects of rural electrification on household welfare: Evidence from Senegal," Utilities Policy, Elsevier, vol. 91(C).
    11. Saha, Sanjoy Kumar, 2025. "Empowering rural South Asia: Off-grid solar PV, electricity accessibility, and sustainable agriculture," Applied Energy, Elsevier, vol. 377(PC).
    12. Lu Jiang & Xingpeng Chen & Bing Xue, 2019. "Features, Driving Forces and Transition of the Household Energy Consumption in China: A Review," Sustainability, MDPI, vol. 11(4), pages 1-20, February.
    13. Ying Dong & Weijie Luo & Xiaoge Zhang, 2024. "Information and communication technology diffusion and the urban–rural income gap in China," Pacific Economic Review, Wiley Blackwell, vol. 29(2), pages 159-186, May.
    14. Wu, Shu & Han, Hongyun, 2022. "Energy transition, intensity growth, and policy evolution: Evidence from rural China," Energy Economics, Elsevier, vol. 105(C).
    15. Amuakwa-Mensah, Salome & Surry, Yves, 2022. "Association between rural electrification and agricultural output: Evidence from Sub-Saharan Africa," World Development Perspectives, Elsevier, vol. 25(C).
    16. Dingqiang Sun & Xinyue Yang & Huanguang Qiu, 2022. "Off-farm work and rural residential energy transition: a farm-household model and empirical evidence from China," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 14(4), pages 816-831, August.
    17. Zhang, Lixiao & Pang, Mingyue & Bahaj, AbuBakr S. & Yang, Yongchuan & Wang, Changbo, 2021. "Small hydropower development in China: Growing challenges and transition strategy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 137(C).
    18. Huang, Ruting & Yao, Xin, 2023. "The role of power transmission infrastructure in income inequality: Fresh evidence from China," Energy Policy, Elsevier, vol. 177(C).
    19. Li, Hui & Li, Yue & Zheng, Guoliang & Zhou, You, 2024. "Interaction between household energy consumption and health: A systematic review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 189(PA).
    20. Li, Kuanhong & Wang, Linping & Wang, Lianhui, 2024. "Consumption as the catalyst: Analyzing rural power infrastructure and agricultural growth through panel threshold regression and data-driven prediction," Applied Energy, Elsevier, vol. 365(C).
    21. Jiaxin Wu & Hongjuan Yang & Tanveer Ahmed, 2023. "An assessment of the policy of poverty alleviation in continuous poverty-stricken areas: evidence from Yunnan Province, China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(9), pages 9757-9777, September.
    22. Farthing, Amanda & Rosenlieb, Evan & Steward, Darlene & Reber, Tim & Njobvu, Clement & Moyo, Chrispin, 2023. "Quantifying agricultural productive use of energy load in Sub-Saharan Africa and its impact on microgrid configurations and costs," Applied Energy, Elsevier, vol. 343(C).
    23. Kadoukpè Gildas Magbondé & Djiby Racine Thiam & Natascha Wagner, 2024. "The Economic Impacts of Rural Water Supply Infrastructures in Developing Countries: Empirical Evidence from Senegal," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 87(10), pages 2571-2628, October.

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    More about this item

    Keywords

    Net agricultural income; Anti-poverty; Rural China; Rural electrification program;
    All these keywords.

    JEL classification:

    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O22 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis

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