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Who Benefits Most from Rural Electrification? Evidence in India

Author

Listed:
  • 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
    DOI: 10.22004/ag.econ.125090
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    References listed on IDEAS

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    3. 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.
    4. 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.
    5. 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.
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    7. World Bank, 2001. "India : Power Supply to Agriculture, Volume 1. Summary Report," World Bank Publications - Reports 15288, The World Bank Group.
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    • F0 - International Economics - - General

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