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Welfare impacts of rural electrification : evidence from Vietnam

Author

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  • Barnes,Douglas French
  • Khandker,Shahidur R.
  • Nguyen,Minh Huu
  • Samad,Hussain A.

Abstract

Access to electricity is crucial for economic development and there is a growing body of literature on the impact of rural electrification on development. However, most studies have so far relied on cross-sectional surveys comparing households with and without electricity, which have well known causal attribution problems. This paper is one of the first studies to examine the welfare impacts of households’ rural electrification based on panel surveys conducted in 2002 and 2005 for some 1,100 households in rural Vietnam,. The findings indicate that grid electrification has been both extensive (connecting all surveyed communes by 2005) and intensive (connecting almost 80 percent of the surveyed households by 2005). Vietnam is unusual in that once electricity is locally available, both rich and poor households are equally likely to get the connection. The econometric estimations suggest that grid electrification has significant positive impacts on households’ cash income, expenditure, and educational outcomes. The benefits, however, reach a saturation point after prolonged exposure to electricity. Finally, this study recommends investigating the long-term benefits of rural electrification - not just for households, but for the rural economy as a whole.

Suggested Citation

  • Barnes,Douglas French & Khandker,Shahidur R. & Nguyen,Minh Huu & Samad,Hussain A., 2009. "Welfare impacts of rural electrification : evidence from Vietnam," Policy Research Working Paper Series 5057, The World Bank.
  • Handle: RePEc:wbk:wbrwps:5057
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Irani Arráiz & Carla Calero, 2015. "From Candles to Light: The Impact of Rural Electrification," IDB Publications (Working Papers) 6917, Inter-American Development Bank.
    2. Daka, Karen Rajaona & Ballet, Jérôme, 2011. "Children's education and home electrification: A case study in northwestern Madagascar," Energy Policy, Elsevier, vol. 39(5), pages 2866-2874, May.
    3. Pachauri, Shonali & Spreng, Daniel, 2011. "Measuring and monitoring energy poverty," Energy Policy, Elsevier, vol. 39(12), pages 7497-7504.
    4. Cuong, Nguyen Viet & Tung, Phung Duc & Westbrook, Daniel, 2015. "Do the poorest ethnic minorities benefit from a large-scale poverty reduction program? Evidence from Vietnam," The Quarterly Review of Economics and Finance, Elsevier, vol. 56(C), pages 3-14.
    5. Chakravorty, Ujjayant & Pelli, Martino & Ural Marchand, Beyza, 2014. "Does the quality of electricity matter? Evidence from rural India," Journal of Economic Behavior & Organization, Elsevier, vol. 107(PA), pages 228-247.
    6. Gunther Bensch & Jochen Kluve & Jörg Peters, 2011. "Impacts of rural electrification in Rwanda," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 3(4), pages 567-588, December.
    7. repec:mpr:mprres:7760 is not listed on IDEAS
    8. Justin Yifu Lin & Will Martin, 2010. "The financial crisis and its impacts on global agriculture," Agricultural Economics, International Association of Agricultural Economists, vol. 41(s1), pages 133-144, November.
    9. repec:eee:deveng:v:2:y:2017:i:c:p:1-11 is not listed on IDEAS
    10. repec:gam:jeners:v:10:y:2017:i:11:p:1899-:d:119446 is not listed on IDEAS
    11. Irani Arráiz & Carla Calero, 2015. "From Candles to Light: The Impact of Rural Electrification," IDB Publications (Working Papers) 89136, Inter-American Development Bank.
    12. Barham, Tania & Lipscomb, Molly & Mobarak, Ahmed Mushfiq, 2011. "Development Effects of Electrification: Evidence from the Geologic Placement of Hydropower Plants in Brazil," CEPR Discussion Papers 8427, C.E.P.R. Discussion Papers.
    13. Paul Baringanire & Kabir Malik & Sudeshna Ghosh Banerjee, 2014. "Scaling Up Access to Electricity : The Case of Rwanda," World Bank Other Operational Studies 18680, The World Bank.
    14. Williams, Nathaniel J. & Jaramillo, Paulina & Taneja, Jay & Ustun, Taha Selim, 2015. "Enabling private sector investment in microgrid-based rural electrification in developing countries: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 1268-1281.
    15. Molly Lipscomb & A. Mushfiq Mobarak & Tania Barham, 2013. "Development Effects of Electrification: Evidence from the Topographic Placement of Hydropower Plants in Brazil," American Economic Journal: Applied Economics, American Economic Association, vol. 5(2), pages 200-231, April.
    16. van de Walle, Dominique & Ravallion, Martin & Mendiratta, Vibhuti & Koolwal, Gayatri, 2013. "Long-term impacts of household electrification in rural India," Policy Research Working Paper Series 6527, The World Bank.
    17. Independent Evaluation Group, 2015. "World Bank Group Support to Electricity Access, FY2000-2014," World Bank Publications, The World Bank, number 22953.
    18. Kumar, Santosh & Rauniyar, Ganesh, 2011. "Is electrification welfare improving?: non-experimental evidence from rural Bhutan," MPRA Paper 31482, University Library of Munich, Germany.

    More about this item

    Keywords

    Electric Power; Energy Production and Transportation; Access to Finance; Rural Poverty Reduction; Engineering;

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