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Impacts of Energy Efficiency Projects in Developing Countries : Evidence from a SpatialDifference-in-Differences Analysis in Malawi

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  • Naeher,Dominik
  • Narayanan,Raghavan
  • Ziulu,Virginia

Abstract

Spatial difference-in-differences analysis is used to study the impacts of a large-scaledevelopment intervention aimed at improving energy efficiency in Malawi. The estimation strategy takesadvantage of the geographical variation in the implementation of different project components and is basedon a combination of remote-sensing (satellite) data and national household survey data. The results suggest that acombination of demand-side and supply-side interventions was associated with a statistically significant increase inelectricity access, a decrease in the frequency of blackouts, and a switch from traditional fuels toelectricity as the main source of energy for lighting (but not for cooking). At the same time, there is no evidencethat the intervention caused households to pay more for electricity. The results are consistent with an emergingview in the literature that there are synergies between energy efficiency and energy access, especially in placeswhere the bottleneck to wider electricity access is limited electricity generation capacity rather than the cost ofconnecting more clients to the grid.

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  • Naeher,Dominik & Narayanan,Raghavan & Ziulu,Virginia, 2021. "Impacts of Energy Efficiency Projects in Developing Countries : Evidence from a SpatialDifference-in-Differences Analysis in Malawi," Policy Research Working Paper Series 9842, The World Bank.
    • Handle: RePEc:wbk:wbrwps:9842
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    Keywords

    Energy and Environment; Energy Demand; Energy and Mining; Energy Policies & Economics; Electric Power; Energy Conservation & Efficiency; Energy Consumption; Environment and Energy Efficiency;
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