Rural Electrification and Its Impact on Households’ Welfare

Electricity is the key input for urban and rural development which directly effects households’ welfare in micro-level. Least developed countries policy focus on electrifying rural area through off-grid electricity because of high cost in connecting remote areas to national grid. This research estimates the welfare effects of Shorabak small hydropower in Fayzabad city of Badakhshan province, considering the wellbeing of residences in Taliqan city of Takhar provice that obtained from imported electricity from Tajikistan. The dependent variables of education, saving, health, employment, information and environment used as determinant of welfare in linear regression models. Residences of Fayzabad and Taliqan cities constituted the target population, who interviewed through 400 questionnaire using purposive samplings. For the purpose of analysis, regression models run in SPSS version 25. It was found that full access to electricity in Taliqan city positively changed study hours, saving via cheap per kW fee, decreased illness caused by utilizing wood, fuel for cooking and heating purposes. Furthermore, the level of information increased because of access to media particularly TV. A positive notion seen in keeping environment green by removing wood in households as result of using electricity instead. Generally the findings show, by Shorabak hydropower plant inauguration which is 90% completed the same welfare increase will be felt in Fayzabad city as well.