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Who Benefits Most from Rural Electrification? Evidence in India

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  • Khandker, Shahidur R.
  • Samad, Hussain A.
  • Ali, Rubaba
  • Barnes, Douglas F.

Abstract

This paper applies an econometric analysis to estimate the average and distribution benefits of rural electrification using rich household survey data from India. The results support that rural electrification helps to reduce time allocated to fuelwood collection by household members and increases time allocated to studying by boys and girls. Rural electrification also increases labor supply of men and women, schooling of boys and girls, household per capita income and expenditure. Electrification also helps reduce poverty. But the larger share of benefits accrues to wealthier rural households, with poorer ones having a more limited use of electricity. The analysis also shows that restricted supply of electricity, due to frequent power outages, negatively affects both household electricity connection and its consumption, thereby reducing the expected benefits of rural electrification.

Suggested Citation

  • 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.
  • Handle: RePEc:ags:aaea12:125090
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. Markus Frölich & Blaise Melly, 2013. "Unconditional Quantile Treatment Effects Under Endogeneity," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 31(3), pages 346-357, July.
    4. Johan Martins, 2005. "The Impact of the Use of Energy Sources on the Quality of Life of Poor Communities," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 72(3), pages 373-402, July.
    5. Cust, J. & Singh, A. & Neuhoff, K., 2007. "Rural Electrification in India: Economic and Institutional aspects of Renewables," Cambridge Working Papers in Economics 0763, Faculty of Economics, University of Cambridge.
    6. Munshi, Kaivan & Myaux, Jacques, 2006. "Social norms and the fertility transition," Journal of Development Economics, Elsevier, vol. 80(1), pages 1-38, June.
    7. 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.
    8. Shahidur R. Khandker, Douglas F. Barnes, and Hussain A. Samad, 2012. "The Welfare Impacts of Rural Electrification in Bangladesh," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
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    Citations

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    Cited by:

    1. Irani Arráiz & Carla Calero, 2015. "From Candles to Light: The Impact of Rural Electrification," IDB Publications (Working Papers) 6917, Inter-American Development Bank.
    2. van de Walle, Dominique & Ravallion, Martin & Mendiratta, Vibhuti & Koolwal, Gayatri, 2013. "Long-term impacts of household electrification in rural India," Policy Research Working Paper Series 6527, The World Bank.
    3. Williams, Nathaniel J. & Jaramillo, Paulina & Taneja, Jay & Ustun, Taha Selim, 2015. "Enabling private sector investment in microgrid-based rural electrification in developing countries: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 1268-1281.
    4. Hansen, Henrik & Trifković, Neda, 2014. "Food Standards are Good – For Middle-Class Farmers," World Development, Elsevier, vol. 56(C), pages 226-242.
    5. repec:eee:enepol:v:108:y:2017:i:c:p:55-69 is not listed on IDEAS
    6. Comello, Stephen D. & Reichelstein, Stefan J. & Sahoo, Anshuman & Schmidt, Tobias S., 2017. "Enabling Mini-Grid Development in Rural India," World Development, Elsevier, vol. 93(C), pages 94-107.
    7. Santosh Kumar & Ganesh Rauniyar, 2018. "The Impact of Rural Electrification on Income and Education: Evidence from Bhutan," Working Papers 1801, Sam Houston State University, Department of Economics and International Business.
    8. repec:aen:journl:ej38-3-jamasb is not listed on IDEAS
    9. repec:eee:deveng:v:1:y:2016:i:c:p:26-35 is not listed on IDEAS
    10. Palit, Debajit & Bandyopadhyay, Kaushik Ranjan, 2016. "Rural electricity access in South Asia: Is grid extension the remedy? A critical review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 1505-1515.
    11. Sharma, Tarun & Balachandra, P., 2015. "Benchmarking sustainability of Indian electricity system: An indicator approach," Applied Energy, Elsevier, vol. 142(C), pages 206-220.
    12. Richard S.J. Tol, 2017. "The Private Benefit of Carbon and its Social Cost," Working Paper Series 0717, Department of Economics, University of Sussex.
    13. repec:gam:jeners:v:10:y:2017:i:11:p:1899-:d:119446 is not listed on IDEAS
    14. Irani Arráiz & Carla Calero, 2015. "From Candles to Light: The Impact of Rural Electrification," IDB Publications (Working Papers) 89136, Inter-American Development Bank.
    15. Rao, Narasimha D., 2013. "Does (better) electricity supply increase household enterprise income in India?," Energy Policy, Elsevier, vol. 57(C), pages 532-541.

    More about this item

    Keywords

    Consumer/Household Economics; Resource /Energy Economics and Policy;

    JEL classification:

    • F0 - International Economics - - General

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