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Long-Term Gains from Electrification in Rural India

Author

Listed:
  • Dominique van de Walle

    (BM = WB - La Banque Mondiale = The World Bank - WBG = GBM - World Bank Group = Groupe Banque Mondiale)

  • Martin Ravallion

    (GU - Georgetown University [Washington])

  • Vibhuti Mendiratta

    (PSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique, BM = WB - La Banque Mondiale = The World Bank - WBG = GBM - World Bank Group = Groupe Banque Mondiale, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Gayatri Koolwal

Abstract

We know surprisingly little about the long-run impacts of household electrification. This paper studies the impacts on consumption in rural India over a 17-year period, allowing for both internal and external (village-level) effects. Under our identifying assumptions, electrification brought significant consumption gains for households who acquired electricity for their own use. We also find evidence of a dynamic effect of village connectivity for households without electricity themselves. This is suggestive of an external effect, which also comes with a shift in consumption spending suggestive of status concerns among those still without electricity. Labor earnings were an important channel of impact. This was mainly through extra work by men. There was no effect on average wage rates.

Suggested Citation

  • Dominique van de Walle & Martin Ravallion & Vibhuti Mendiratta & Gayatri Koolwal, 2015. "Long-Term Gains from Electrification in Rural India," Post-Print halshs-01511017, HAL.
    • Handle: RePEc:hal:journl:halshs-01511017
    DOI: 10.1093/wber/lhv057
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    Keywords

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    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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