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Grid Extension in Rural Benin: Micro-Manufacturers and the Electrification Trap

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  • Peters, Jörg
  • Vance, Colin
  • Harsdorff, Marek

Abstract

Summary Productive electricity use is widely believed to contribute to positive impacts of electrification projects. This paper investigates these impacts by comparing the performance of micro manufacturing enterprises in grid-covered and non-covered villages in Northern Benin. Using firm-level data, the analysis employs Propensity Score Matching techniques to measure differences in profits according to a grid-connection. Although beneficial impacts are found from firm creation following electrification, firms that existed before electrification perform no better than their matched counterparts from a non-electrified region. Complementary measures that sensitize firms about the implications of a grid connection are recommended as important features of program design.

Suggested Citation

  • Peters, Jörg & Vance, Colin & Harsdorff, Marek, 2011. "Grid Extension in Rural Benin: Micro-Manufacturers and the Electrification Trap," World Development, Elsevier, vol. 39(5), pages 773-783, May.
  • Handle: RePEc:eee:wdevel:v:39:y:2011:i:5:p:773-783
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Bensch, Gunther & Peters, Jörg & Schmidt, Christoph M., 2012. "Impact evaluation of productive use—An implementation guideline for electrification projects," Energy Policy, Elsevier, vol. 40(C), pages 186-195.
    2. Gunther Bensch & Jörg Peters & Maximiliane Sievert, 2012. "Fear of the Dark? – How Access to Electric Lighting Affects Security Attitudes and Nighttime Activities in Rural Senegal," Ruhr Economic Papers 0369, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    3. Michael Grimm & Anicet Munyehirwe & Jörg Peters & Maximiliane Sievert, 2017. "A First Step up the Energy Ladder? Low Cost Solar Kits and Household’s Welfare in Rural Rwanda," World Bank Economic Review, World Bank Group, vol. 31(3), pages 631-649.
    4. Lenz, Luciane & Munyehirwe, Anicet & Peters, Jörg & Sievert, Maximiliane, 2017. "Does Large-Scale Infrastructure Investment Alleviate Poverty? Impacts of Rwanda’s Electricity Access Roll-Out Program," World Development, Elsevier, vol. 89(C), pages 88-110.
    5. Kudo, Yuya & Shonchoy, Abu S. & Takahashi, Kazushi, 2015. "Impacts of solar lanterns in geographically challenged locations : experimental evidence from Bangladesh," IDE Discussion Papers 502, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    6. Grimm, Michael & Lenz, Luciane & Peters, Jörg & Sievert, Maximiliane, 2016. "Demand for Off-Grid Solar Electricity: Experimental Evidence from Rwanda," IZA Discussion Papers 10427, Institute for the Study of Labor (IZA).
    7. Fujii, Tomoki & Shonchoy, Abu S. & Xu, Sijia, 2018. "Impact of Electrification on Children’s Nutritional Status in Rural Bangladesh," World Development, Elsevier, vol. 102(C), pages 315-330.
    8. Jörg Peters & Maximiliane Sievert, 2016. "Impacts of rural electrification revisited – the African context," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 8(3), pages 327-345, July.
    9. World Bank Group, "undated". "Africa's Pulse, No. 17, April 2018," World Bank Other Operational Studies 29667, The World Bank.
    10. Tomoki Fujii, 2015. "Poverty decomposition by regression," WIDER Working Paper Series 102, World Institute for Development Economic Research (UNU-WIDER).
    11. Lisa CHAUVET & Alvaro DE MIGUEL TORRES & Alexa TIEMANN, 2018. "Electricity and manufacturing firm profits in Myanmar," Working Papers P214, FERDI.
    12. repec:eee:energy:v:142:y:2018:i:c:p:962-982 is not listed on IDEAS
    13. Bensch, Gunther & Peters, Jörg & Sievert, Maximiliane, 2012. "Fear of the Dark? – How Access to Electric Lighting Affects Security Attitudes and Nighttime Activities in Rural Senegal," Ruhr Economic Papers 369, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    14. Matinga, Margaret Njirambo & Annegarn, Harold J., 2013. "Paradoxical impacts of electricity on life in a rural South African village," Energy Policy, Elsevier, vol. 58(C), pages 295-302.
    15. Jörg Peters & Maximiliane Sievert, 2015. "Impacts of Rural Electrification Revisited – The African Context," Ruhr Economic Papers 0556, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    16. repec:zbw:rwirep:0369 is not listed on IDEAS
    17. Jacopo Bonan & Stefano Pareglio & Massimo Tavoni, 2014. "Access to Modern Energy: a Review of Impact Evaluations," Working Papers 2014.96, Fondazione Eni Enrico Mattei.
    18. repec:zbw:rwirep:0556 is not listed on IDEAS

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