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The impact of reliable electricity access on agricultural income and land utilization in China

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  • Xia, Fang
  • Gao, Xuwen
  • Fan, Shenggen
  • Song, Feng

Abstract

Reliable electricity access is crucial for agricultural production, as it ensures a constant supply of electricity for power and automation. This study investigates the impact of reliable electricity access on agricultural income and land utilization in China. By combining household panel data from the 2012–2018 China Labor-Force Dynamics Survey with wind power data from the National Energy Administration and local geographic information, we measure the reliability of electricity supply through power outages. These outages are instrumented using feed-in tariff rates, curtailment rates of wind power, and interactions between curtailment rates and both the mean and standard deviation of a city's elevation. Our findings reveal that reliable electricity access significantly boosts grain income. Specifically, it increases estimated grain income by 5303 yuan, equivalent to approximately 13.8 % of total household income. The key mechanism driving this increase is the expansion of irrigated farmland by 4.57 mu. This study provides important insights for policymakers aiming to improve rural electrification.

Suggested Citation

  • Xia, Fang & Gao, Xuwen & Fan, Shenggen & Song, Feng, 2025. "The impact of reliable electricity access on agricultural income and land utilization in China," Energy Economics, Elsevier, vol. 150(C).
    • Handle: RePEc:eee:eneeco:v:150:y:2025:i:c:s0140988325006395
    DOI: 10.1016/j.eneco.2025.108812
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