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The effects of rural electrification in India: An instrumental variable approach at the household level

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  • Thomas, Daniel Robert
  • Harish, S.P.
  • Kennedy, Ryan
  • Urpelainen, Johannes

Abstract

Governments in developing countries are investing billions of dollars to increase electricity access in rural areas, but the literature on the impact of these investments has produced mixed results. We leverage a unique characteristic of household electrification policy in Uttar Pradesh, India, whereby only households within 40 m of an electricity pole are eligible for a legal electrical connection, to estimate the causal impact of electrification using a pre-registered instrumental variable design. With an original survey of 686 households across 120 habitations in the Bahraich district of Uttar Pradesh, we find that legal electrification has a positive impact on household expenditures, adult household activities, and ownership and usage of appliances. The results suggest a more optimistic picture about the impact of rural electrification than some previous studies.

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  • Thomas, Daniel Robert & Harish, S.P. & Kennedy, Ryan & Urpelainen, Johannes, 2020. "The effects of rural electrification in India: An instrumental variable approach at the household level," Journal of Development Economics, Elsevier, vol. 146(C).
    • Handle: RePEc:eee:deveco:v:146:y:2020:i:c:s030438782030095x
    DOI: 10.1016/j.jdeveco.2020.102520
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    3. 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.
    4. Joshua Budlender, 2024. "Surviving in the dark: the mortality effects of reducing rolling blackouts," WIDER Working Paper Series wp-2024-44, World Institute for Development Economic Research (UNU-WIDER).
    5. Mohammed, Sadick & Abdulai, Awudu, 2021. "Extension Participation and Improved Technology Adoption: Impact on Efficiency and Welfare of Farmers in Ghana," 2021 Conference, August 17-31, 2021, Virtual 315362, International Association of Agricultural Economists.
    6. Ngawang Dendup, 2021. "Returns to Grid Electricity on Firewood Consumption and Mechanism," Working Papers 2109, Waseda University, Faculty of Political Science and Economics.
    7. Sheridan, Steve & Sunderland, Keith & Courtney, Jane, 2023. "Swarm electrification: A comprehensive literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 175(C).
    8. David Boisclair & Roxane Borgès Da Silva & Nathalie de Marcellis-Warin & Pierre-Carl Michaud & Ingrid Peignier, 2022. "Combien de personnes ont développé des symptômes ou contracté la Covid-19 au Québec ? Une étude exploratoire," CIRANO Working Papers 2022s-05, CIRANO.
    9. Subedi, Mukti Nath & Bharadwaj, Bishal & Rafiq, Shuddhasattwa, 2023. "Who benefits from the decentralised energy system (DES)? Evidence from Nepal’s micro-hydropower (MHP)," Energy Economics, Elsevier, vol. 120(C).
    10. Choumert-Nkolo, Johanna & le Roux, Leonard, 2024. "Leaving the hearth you know: Internal migration and energy poverty," World Development, Elsevier, vol. 180(C).
    11. Wang, Yao & Du, Zhili, 2024. "Has energy poverty entangled the households by hindering the filial generation?," Energy Policy, Elsevier, vol. 186(C).
    12. Richard S. J. Tol, 2023. "Navigating the energy trilemma during geopolitical and environmental crises," Papers 2301.07671, arXiv.org.
    13. Adrien Fabre & Thomas Douenne & Linus Mattauch, 2023. "International Attitudes Toward Global Policies," Working Papers 2023.01, FAERE - French Association of Environmental and Resource Economists.
    14. Farhad Taghizadeh-Hesary & Ehsan Rasoulinezhad & Han Phoumin, 2022. "Ways to achieve universal access to sustainable electricity in Southeast Asia," Economic Change and Restructuring, Springer, vol. 55(4), pages 2031-2050, November.
    15. Dendup, Ngawang, 2022. "Returns to grid electricity on firewood and kerosene: Mechanism," Journal of Environmental Economics and Management, Elsevier, vol. 111(C).
    16. Bhruguwar, Ira, 2023. "What are the key factors of economic growth that affect rural development in India?," MPRA Paper 118772, University Library of Munich, Germany.
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