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Impacts of access to electricity on employment and household income growth in Cambodia

Author

Listed:
  • Asami Takeda

    (Hokkaido University)

  • Jonna P. Estudillo

    (University of the Philippines)

Abstract

This study examines the impacts of access to electricity on household welfare in terms of employment and income growth in Cambodia. To correct for the endogeneity of electricity, we introduce two instruments: (1) population density at village level; and (2) distance between the center of the village and the nearest electricity substation point. Results show a strong and positive effect of household access to electricity on the probability of participation in wage employment and self-employment in the nonfarm sector. Access to electricity contributes to total household income growth through the growth of household nonfarm income. Evidence shows that electrification has facilitated the shift of household livelihood away from self-employment on farms and to wage work in the nonfarm sector, which eventually served as the main driver of household income growth.

Suggested Citation

  • Asami Takeda & Jonna P. Estudillo, 2025. "Impacts of access to electricity on employment and household income growth in Cambodia," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 62(1), pages 56-76, June.
    • Handle: RePEc:phs:prejrn:v:62:y:2025:i:1:p:56-76
    as

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    File URL: https://pre.econ.upd.edu.ph/index.php/pre/article/view/1069/1011
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    References listed on IDEAS

    as
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    3. Molly Lipscomb & A. Mushfiq Mobarak & Tania Barham, 2013. "Development Effects of Electrification: Evidence from the Topographic Placement of Hydropower Plants in Brazil," American Economic Journal: Applied Economics, American Economic Association, vol. 5(2), pages 200-231, April.
    4. Grogan, Louise & Sadanand, Asha, 2013. "Rural Electrification and Employment in Poor Countries: Evidence from Nicaragua," World Development, Elsevier, vol. 43(C), pages 252-265.
    5. Santosh Kumar & Ganesh Rauniyar, 2018. "The impact of rural electrification on income and education: Evidence from Bhutan," Review of Development Economics, Wiley Blackwell, vol. 22(3), pages 1146-1165, August.
    6. Han, Phoumin & Kimura, Fukunari & Sandu, Suwin, 2020. "Household-level analysis of the impacts of electricity consumption on welfare and the environment in Cambodia: Empirical evidence and policy implications," Economic Modelling, Elsevier, vol. 89(C), pages 476-483.
    7. Rosamaría Dasso & Fernando Fernandez, 2015. "The effects of electrification on employment in rural Peru," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-16, December.
    8. World Bank, 2013. "Where Have All the Poor Gone? : Cambodia Poverty Assessment 2013," World Bank Publications - Reports 17546, The World Bank Group.
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    Keywords

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    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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