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Benefits of electrification and the role of reliability : evidence from India

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  • Samad,Hussain A.
  • Zhang,Fan

Abstract

This paper estimates the welfare impact of rural electrification in India using nationally representative household panel survey data for 2005 and 2012. Analysis based on a propensity-score-weighted fixed-effects model finds that while electrification is associated with a broad range of social and economic benefits, the size of the effects depends importantly on the reliability of electricity service. Gaining access to electricity combined with a reliable power supply is associated with a 17 percent increase in income during the sample period, but gaining access to electricity alone is associated with only a 9.6 percent increase in income. The net gain from both increasing the access rate and reducing power outages in rural India is estimated to be US$11 billion a year. Moreover, India's rural electrification policy appears to be progressive because lower-income households benefit more from access to electricity than higher-income households during the sample period.

Suggested Citation

  • Samad,Hussain A. & Zhang,Fan, 2016. "Benefits of electrification and the role of reliability : evidence from India," Policy Research Working Paper Series 7889, The World Bank.
    • Handle: RePEc:wbk:wbrwps:7889
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    Citations

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    Cited by:

    1. Abbasi ,Mansoureh & Lebrand,Mathilde Sylvie Maria & Mongoue,Arcady Bluette & Pongou,Roland & Zhang,Fan, 2022. "Roads, Electricity, and Jobs: Evidence of Infrastructure Complementarity in Sub-Saharan Africa," Policy Research Working Paper Series 9976, The World Bank.
    2. Obsa Urgessa Ayana & Jima Degaga, 2022. "Effects of rural electrification on household welfare: a meta-regression analysis," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 69(2), pages 209-261, June.
    3. Najeeb,Fatima & Morales,Matias & Lopez-Acevedo,Gladys C., 2020. "Analyzing Female Employment Trends in South Asia," Policy Research Working Paper Series 9157, The World Bank.
    4. Fouzia Sohail & Ambreen Fatima, 2022. "An Assessment of Electricity Tariff Reforms in Karachi City: The City of Light (Article)," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 61(2), pages 259-274.
    5. Meeks, Robyn C. & Omuraliev, Arstan & Isaev, Ruslan & Wang, Zhenxuan, 2023. "Impacts of electricity quality improvements: Experimental evidence on infrastructure investments," Journal of Environmental Economics and Management, Elsevier, vol. 120(C).
    6. Daniele Menniti & Anna Pinnarelli & Nicola Sorrentino & Fiorella Stella & Caterina Aura & Claudia Liutic & Gaetano Polizzi, 2022. "A Tool to Assess the Interaction between Energy Efficiency, Demand Response, and Power System Reliability," Energies, MDPI, vol. 15(15), pages 1-12, July.
    7. Heyes, Anthony & Saberian, Soodeh, 2022. "Hot Days, the ability to Work and climate resilience: Evidence from a representative sample of 42,152 Indian households," Journal of Development Economics, Elsevier, vol. 155(C).
    8. Li, Jianglong & Ho, Mun Sing & Xie, Chunping & Stern, Nicholas, 2022. "China's flexibility challenge in achieving carbon neutrality by 2060," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
    9. Hashemi, Majid, 2021. "The economic value of unsupplied electricity: Evidence from Nepal," Energy Economics, Elsevier, vol. 95(C).
    10. Alex Musetti & Hossein Sadegh Lafmejani & Alessandro Soldati, 2022. "Control and Design of a Boost-Based Electrolytic Capacitor-Less Single-Phase-Input Drive," Energies, MDPI, vol. 15(16), pages 1-14, August.
    11. Paul Nduhuura & Matthias Garschagen & Abdellatif Zerga, 2021. "Impacts of Electricity Outages in Urban Households in Developing Countries: A Case of Accra, Ghana," Energies, MDPI, vol. 14(12), pages 1-26, June.

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