Regional disparities in electrification of India – do geographic factors matter?
Modern energy sources are important input factors for human development. Although official estimates indicate that 85% of Indian villages are electrified, fewer than 60% of Indian households actually consume electricity. Therefore, one observes a considerable spatial heterogeneity in electrification rate. This paper examines the factors that influence household and village electrification, with particular attention given to the influence of geographic factors. The analysis shows that village electrification is constrained by state area and village structure. In addition, a high share of agricultural areas seems to have a positive effect. Household electrification depends on household characteristics, the degree of community electrification, and the quality of electricity supply, and it is independent of geographic factors. Surprisingly, household expenditure and, in particular, the electricity tariff show only a relatively small effect on a household‘s choice for electricity.
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