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Agricultural Windfalls and Electrification

Author

Listed:
  • Andrew L. Dabalen
  • Justice Tei Mensah
  • Nsabimana,Aimable
  • Nshunguyinka,Alexandre

Abstract

This paper studies how windfalls from agriculture influence demand for electrification in a developing country. Leveraging two decades of administrative data on the universe of electricity grid customers in Rwanda, and plausibly exogenous variations in international coffee prices, we document two key findings: (I) Historical coffee price booms explain about 4% of the increase in electrification rates in Rwanda. (II) Coffee price shocks are also associated with an increase in electricity consumption by connected households. Relaxing liquidity constraints associated with upfront payment of connection fees and increased demand for electrical appliances are likely mechanisms.

Suggested Citation

  • Andrew L. Dabalen & Justice Tei Mensah & Nsabimana,Aimable & Nshunguyinka,Alexandre, 2025. "Agricultural Windfalls and Electrification," Policy Research Working Paper Series 11019, The World Bank.
    • Handle: RePEc:wbk:wbrwps:11019
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    References listed on IDEAS

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