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Does the Quality of Electricity Matter? Evidence from Rural India

  • Ujjayant Chakravorty

    ()

    (Department of Economics, Tufts University)

  • Martino Pelli

    ()

    (Département d'économique, Université de Sherbrooke)

  • Beyza Ural Marchand

    ()

    (Department of Economics, University of Alberta)

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.

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File URL: http://gredi.recherche.usherbrooke.ca/wpapers/GREDI-1305.pdf
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Paper provided by Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke in its series Cahiers de recherche with number 13-05.

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Length: 38 pages
Date of creation: Oct 2013
Date of revision:
Handle: RePEc:shr:wpaper:13-05
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