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Household-level effects of electricity on income

Author

Listed:
  • Bridge, Brandon A.
  • Adhikari, Dadhi
  • Fontenla, Matías

Abstract

This paper studies the effect of electricity on income, using the Nepal Living Standards Survey-III (NLSSIII), carried out in the years 2010–11. To account for endogeneity issues, we use a Two Stage Probit Least Squares (2SPLS) model. We find that causality runs both ways. That is, income explains whether a household is connected to electricity, but also, a household being connected to electricity has a very large and significant effect on income.

Suggested Citation

  • Bridge, Brandon A. & Adhikari, Dadhi & Fontenla, Matías, 2016. "Household-level effects of electricity on income," Energy Economics, Elsevier, vol. 58(C), pages 222-228.
  • Handle: RePEc:eee:eneeco:v:58:y:2016:i:c:p:222-228
    DOI: 10.1016/j.eneco.2016.06.008
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    More about this item

    Keywords

    Energy; Electricity; Income; Economic development; Nepal;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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