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Does the Quality of Electricity Matter? Evidence from Rural India

Author

Listed:
  • Ujjayant Chakravorty

    (Department of Economics, Tufts University)

  • Martino Pelli

    (Department of Economics, Université de Sherbrooke)

  • Beyza Ural Marchand

    (Department of Economics, University of Alberta)

Abstract

This paper estimates the returns to household income due to improved access to electricity in rural India. We examine the effect of connecting a household to the grid and the quality of electricity, defined as hours of daily supply. The analysis is based on two rounds of a representative panel of more than 10,000 households. We use the district-level density of transmission cables as instrument for the electrification status of the household. We find that a grid connection increases non-agricultural incomes of rural households by about 9 percent during the study period (1994-2005). However, a grid connection and a higher quality of electricity (in terms of fewer outages and more hours per day) increases non-agricultural incomes by about 28.6 percent in the same period.

Suggested Citation

  • Ujjayant Chakravorty & Martino Pelli & Beyza Ural Marchand, 2014. "Does the Quality of Electricity Matter? Evidence from Rural India," Working Papers 2014.11, Fondazione Eni Enrico Mattei.
  • Handle: RePEc:fem:femwpa:2014.11
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    References listed on IDEAS

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    Cited by:

    1. Michael Grimm & Robert Sparrow & Luca Tasciotti, 2015. "Does Electrification Spur the Fertility Transition? Evidence From Indonesia," Demography, Springer;Population Association of America (PAA), vol. 52(5), pages 1773-1796, October.
    2. Jacopo Bonan & Stefano Pareglio & Massimo Tavoni, 2014. "Access to Modern Energy: a Review of Impact Evaluations," Working Papers 2014.96, Fondazione Eni Enrico Mattei.
    3. Irani Arráiz & Carla Calero, 2015. "From Candles to Light: The Impact of Rural Electrification," IDB Publications (Working Papers) 6917, Inter-American Development Bank.
    4. repec:oup:wbecrv:v:31:y:2017:i:2:p:385-411. is not listed on IDEAS
    5. Hunt Allcott & Allan Collard-Wexler & Stephen D. O'Connell, 2016. "How Do Electricity Shortages Affect Industry? Evidence from India," American Economic Review, American Economic Association, vol. 106(3), pages 587-624, March.
    6. repec:eee:deveco:v:130:y:2018:i:c:p:173-189 is not listed on IDEAS
    7. repec:eee:renene:v:115:y:2018:i:c:p:509-520 is not listed on IDEAS
    8. repec:eee:enepol:v:109:y:2017:i:c:p:666-675 is not listed on IDEAS
    9. Dominique van de Walle & Martin Ravallion & Vibhuti Mendiratta & Gayatri Koolwal, 2017. "Long-term Gains from Electrification in Rural India," World Bank Economic Review, World Bank Group, vol. 31(2), pages 385-411.
    10. repec:eee:enepol:v:113:y:2018:i:c:p:466-477 is not listed on IDEAS
    11. Aditi Bhattacharyya & Daisy Das & Arkadipta Ghosh, 2017. "Electrification and Welfare of Poor Households in Rural India," Working Papers 1702, Sam Houston State University, Department of Economics and International Business.
    12. Carranza,Eliana & Meeks,Robyn, 2016. "Shedding light : understanding energy efficiency and electricity reliability," Policy Research Working Paper Series 7891, The World Bank.
    13. Irani Arráiz & Carla Calero, 2015. "From Candles to Light: The Impact of Rural Electrification," IDB Publications (Working Papers) 89136, Inter-American Development Bank.
    14. Warner, Kevin J. & Jones, Glenn A., 2017. "A population-induced renewable energy timeline in nine world regions," Energy Policy, Elsevier, vol. 101(C), pages 65-76.
    15. repec:eee:enepol:v:108:y:2017:i:c:p:55-69 is not listed on IDEAS
    16. Stephen O'Connell & Allan Collard-Wexler & Hunt Allcott, 2015. "How Do Electricity Shortages A," 2015 Meeting Papers 159, Society for Economic Dynamics.
    17. Raul Alberto Jimenez Mori, 2017. "Are Blackout Days Free of Charge?: Valuation of Individual Preferences for Improved Electricity Services," IDB Publications (Working Papers) 8424, Inter-American Development Bank.
    18. Ghani, Ejaz & Goswami, Arti Grover & Kerr, William R., 2014. "Spatial dynamics of electricity usage in India," Policy Research Working Paper Series 7055, The World Bank.
    19. 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.
    20. Duncan Chaplin & Arif Mamun & Ali Protik & John Schurrer & Divya Vohra & Kristine Bos & Hannah Burak & Laura Meyer & Anca Dumitrescu & Christopher Ksoll & Thomas Cook, "undated". "Grid Electricity Expansion in Tanzania by MCC: Findings from a Rigorous Impact Evaluation, Final Report," Mathematica Policy Research Reports 144768f69008442e96369195e, Mathematica Policy Research.
    21. repec:eee:enepol:v:106:y:2017:i:c:p:278-287 is not listed on IDEAS

    More about this item

    Keywords

    Electricity Supply; Quality; India; Energy and Development; Infrastructure;

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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