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The Impact of Rural Electrification on Income and Education: Evidence from Bhutan

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  • Santosh Kumar

    (Department of Economics and International Business, Sam Houston State University)

  • Ganesh Rauniyar

    (Independent Evaluator, Paraparaumu, New Zealand)

Abstract

We investigate the impact of a rural electrification program on household income and children’s schooling in rural Bhutan. Using Propensity Score Matching, we find that electrification had a statistically significant impact on non-farm income and education. Non-farm income increased by 61 percent and children gained 0.72 additional years of schooling and 9 minutes of study time per day. We do not observe significant effects on farm income. Results are consistent and robust to different matching algorithms. Our findings indicate that investments in reducing energy deficit may help improve human welfare in Bhutan.

Suggested Citation

  • 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.
  • Handle: RePEc:shs:wpaper:1801
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    Cited by:

    1. Ngawang Dendup, 2021. "Returns to Grid Electricity on Firewood Consumption and Mechanism," Working Papers 2109, Waseda University, Faculty of Political Science and Economics.
    2. Annika Groth, 2020. "Overcoming One-way Impact Evaluation of Rural Electrification Projects," International Journal of Energy Economics and Policy, Econjournals, vol. 10(2), pages 464-476.
    3. Chatterjee, Somdeep & Pal, Debdatta, 2021. "Is there political elite capture in access to energy sources? Evidence from Indian households," World Development, Elsevier, vol. 140(C).

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    More about this item

    Keywords

    Rural electrification; income; education; Bhutan;
    All these keywords.

    JEL classification:

    • 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
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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