Does (better) electricity supply increase household enterprise income in India?
Electricity access is an important driver of economic development. Previous studies treat electrification as a binary outcome. In reality, in developing countries households with access face chronic supply interruptions, which can last up to 12h a day. This is the first study to estimate the income differences in urban and rural non-farm enterprises in Indian households with different levels of electricity supply, using a subset of 8125 households in the India Human and Development Survey, a cross-sectional national sample of 41,554 households. I use multiple econometric approaches, including linear regression with an instrument variable and propensity-score matching with multiple treatment levels to represent supply availability. I find a robust income effect of access, and suggestive evidence of the effect of better supply availability. The aggregate income impact across existing NFEs in India of improving supply to 16 h a day could be on the order of 0.1 percent of GDP.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Barham, Tania & Lipscomb, Molly & Mobarak, Ahmed Mushfiq, 2011. "Development Effects of Electrification: Evidence from the Geologic Placement of Hydropower Plants in Brazil," CEPR Discussion Papers 8427, C.E.P.R. Discussion Papers.
- Vivien Foster & Cecilia Briceno-Garmendia, 2010. "Africa's Infrastructure : A Time for Transformation," World Bank Publications, The World Bank, number 2692, July.
- Kooijman-van Dijk, Annemarije L., 2012. "The role of energy in creating opportunities for income generation in the Indian Himalayas," Energy Policy, Elsevier, vol. 41(C), pages 529-536.
- Sarkar, Ashok, 1996. "Reliability evaluation of a generation-resource plan using customer-outage costs in India," Energy, Elsevier, vol. 21(9), pages 795-803.
- Straub, Stephane, 2008.
"Infrastructure and growth in developing countries : recent advances and research challenges,"
Policy Research Working Paper Series
4460, The World Bank.
- Stephane Straub, 2008. "Infrastructure and Growth in Developing Countries: Recent Advances and Research Challenges," ESE Discussion Papers 179, Edinburgh School of Economics, University of Edinburgh.
- Taryn Dinkelman, 2011. "The Effects of Rural Electrification on Employment: New Evidence from South Africa," American Economic Review, American Economic Association, vol. 101(7), pages 3078-3108, December.
- Caliendo, Marco & Kopeinig, Sabine, 2005.
"Some Practical Guidance for the Implementation of Propensity Score Matching,"
IZA Discussion Papers
1588, Institute for the Study of Labor (IZA).
- Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, 02.
- Marco Caliendo & Sabine Kopeinig, 2005. "Some Practical Guidance for the Implementation of Propensity Score Matching," Discussion Papers of DIW Berlin 485, DIW Berlin, German Institute for Economic Research.
- George A. Akerlof & Rachel E. Kranton, 2002. "Identity and Schooling: Some Lessons for the Economics of Education," Journal of Economic Literature, American Economic Association, vol. 40(4), pages 1167-1201, December.
- Bandiera, Oriana & Rasul, Imran, 2002.
"Social Networks and Technology Adoption in Northern Mozambique,"
CEPR Discussion Papers
3341, C.E.P.R. Discussion Papers.
- Oriana Bandiera & Imran Rasul, 2006. "Social Networks and Technology Adoption in Northern Mozambique," Economic Journal, Royal Economic Society, vol. 116(514), pages 869-902, October.
- Oriana Bandiera & Imran Rasul, 2002. "Social Networks and Technology Adoption in Northern Mozambique," STICERD - Development Economics Papers - From 2008 this series has been superseded by Economic Organisation and Public Policy Discussion Papers 35, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
- Oriana Bandiera & Imran Rasul, 2002. "Social networks and technology adoption in Northern Mozambique," LSE Research Online Documents on Economics 3539, London School of Economics and Political Science, LSE Library.
- John Gibson & Susan Olivia, 2008.
"The Effect of Infrastructure Access and Quality on Non-Farm Enterprises in Rural Indonesia,"
Working Papers in Economics
08/17, University of Waikato, Department of Economics.
- Gibson, John & Olivia, Susan, 2010. "The Effect of Infrastructure Access and Quality on Non-Farm Enterprises in Rural Indonesia," World Development, Elsevier, vol. 38(5), pages 717-726, May.
- Khandker, Shahidur R. & Samad, Hussain A. & Ali, Rubaba & Barnes, Douglas F., 2012.
"Who benefits most from rural electrification ? evidence in India,"
Policy Research Working Paper Series
6095, The World Bank.
- Shahidur R. Khandker, Hussain A. Samad, Rubaba Ali, and Douglas F. Barnes, 2014. "Who Benefits Most from Rural Electrification? Evidence in India," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
- Khandker, Shahidur R. & Samad, Hussain A. & Ali, Rubaba & Barnes, Douglas F., 2012. "Who Benefits Most from Rural Electrification? Evidence in India," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 125090, Agricultural and Applied Economics Association.
- Narasimha D. Rao & Paul Baer, 2012. "“Decent Living” Emissions: A Conceptual Framework," Sustainability, MDPI, Open Access Journal, vol. 4(4), pages 656, April.
- Oecd, 2012. "Developments in Mobile Termination," OECD Digital Economy Papers 193, OECD Publishing.
- Yanovitzky, Itzhak & Zanutto, Elaine & Hornik, Robert, 2005. "Estimating causal effects of public health education campaigns using propensity score methodology," Evaluation and Program Planning, Elsevier, vol. 28(2), pages 209-220, May.
- AfDB AfDB, . "African Development Report 2010," African Development Report, African Development Bank, number 389, 12.
- Gunther Bensch & Jochen Kluve & Jörg Peters, 2011.
"Impacts of rural electrification in Rwanda,"
Journal of Development Effectiveness,
Taylor & Francis Journals, vol. 3(4), pages 567-588, December.
- Bensch, Gunther & Kluve, Jochen & Peters, Jörg, 2011. "Impacts of Rural Electrification in Rwanda," Ruhr Economic Papers 284, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
- Bensch, Gunther & Kluve, Jochen & Peters, Jörg, 2011. "Impacts of Rural Electrification in Rwanda," IZA Discussion Papers 6195, Institute for the Study of Labor (IZA).
- Madhu Khanna & Narasimha D. Rao, 2009. "Supply and Demand of Electricity in the Developing World," Annual Review of Resource Economics, Annual Reviews, vol. 1(1), pages 567-596, 09.
- Payne, James E., 2010. "A survey of the electricity consumption-growth literature," Applied Energy, Elsevier, vol. 87(3), pages 723-731, March.
- Sanghvi, Arun P., 1991. "Power shortages in developing countries : Impacts and policy implications," Energy Policy, Elsevier, vol. 19(5), pages 425-440, June.
- Jin, Songqing & Deininger, Klaus W. & Sur, Mona, 2005.
"Sri Lanka's Rural Non-farm Economy: Removing Constraints to Pro-poor Growth,"
2005 Annual meeting, July 24-27, Providence, RI
19280, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Deininger, Klaus & Jin, Songqing & Sur, Mona, 2007. "Sri Lanka's Rural Non-Farm Economy: Removing Constraints to Pro-Poor Growth," World Development, Elsevier, vol. 35(12), pages 2056-2078, December.
When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:57:y:2013:i:c:p:532-541. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.