IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v58y2016icp222-228.html
   My bibliography  Save this article

Household-level effects of electricity on income

Author

Listed:
  • Bridge, Brandon A.
  • Adhikari, Dadhi
  • Fontenla, Matías

Abstract

This paper studies the effect of electricity on income, using the Nepal Living Standards Survey-III (NLSSIII), carried out in the years 2010–11. To account for endogeneity issues, we use a Two Stage Probit Least Squares (2SPLS) model. We find that causality runs both ways. That is, income explains whether a household is connected to electricity, but also, a household being connected to electricity has a very large and significant effect on income.

Suggested Citation

  • Bridge, Brandon A. & Adhikari, Dadhi & Fontenla, Matías, 2016. "Household-level effects of electricity on income," Energy Economics, Elsevier, vol. 58(C), pages 222-228.
    • Handle: RePEc:eee:eneeco:v:58:y:2016:i:c:p:222-228
    DOI: 10.1016/j.eneco.2016.06.008
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140988316301438
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eneco.2016.06.008?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Shahbaz, Muhammad & Khan, Saleheen & Tahir, Mohammad Iqbal, 2013. "The dynamic links between energy consumption, economic growth, financial development and trade in China: Fresh evidence from multivariate framework analysis," Energy Economics, Elsevier, vol. 40(C), pages 8-21.
    2. Atiqur Rahman & John Westley, 2001. "The Challenge of Ending Rural Poverty," Development Policy Review, Overseas Development Institute, vol. 19(4), pages 553-562, December.
    3. Bruce D. Meyer & James X. Sullivan, 2013. "Consumption and Income Inequality and the Great Recession," American Economic Review, American Economic Association, vol. 103(3), pages 178-183, May.
    4. Shahbaz, Muhammad & Hye, Qazi Muhammad Adnan & Tiwari, Aviral Kumar & Leitão, Nuno Carlos, 2013. "Economic growth, energy consumption, financial development, international trade and CO2 emissions in Indonesia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 25(C), pages 109-121.
    5. Kanagawa, Makoto & Nakata, Toshihiko, 2008. "Assessment of access to electricity and the socio-economic impacts in rural areas of developing countries," Energy Policy, Elsevier, vol. 36(6), pages 2016-2029, June.
    6. Fatih Birol, 2007. "Energy Economics: A Place for Energy Poverty in the Agenda?," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 1-6.
    7. Gebru, Bahre & Bezu, Sosina, 2014. "Environmental resource collection: implications for children's schooling in Tigray, northern Ethiopia," Environment and Development Economics, Cambridge University Press, vol. 19(2), pages 182-200, April.
    8. Daniel LaFave & Duncan Thomas, 2016. "Farms, Families, and Markets: New Evidence on Completeness of Markets in Agricultural Settings," Econometrica, Econometric Society, vol. 84, pages 1917-1960, September.
    9. Amie Gaye, 2007. "Access to Energy and Human Development," Human Development Occasional Papers (1992-2007) HDOCPA-2007-25, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
    10. Grogan, Louise & Sadanand, Asha, 2013. "Rural Electrification and Employment in Poor Countries: Evidence from Nicaragua," World Development, Elsevier, vol. 43(C), pages 252-265.
    11. Ravallion, Martin, 1992. "Does Undernutrition Respond to Incomes and Prices? Dominance Tests for Indonesia," The World Bank Economic Review, World Bank, vol. 6(1), pages 109-124, January.
    12. Dasgupta, Susmita & Huq, Mainul & Khaliquzzaman, M. & Wheeler, David, 2007. "Improving indoor air quality for poor families : a controlled experiment in Bangladesh," Policy Research Working Paper Series 4422, The World Bank.
    13. Omar M. G. Keshk, 2003. "CDSIMEQ: A program to implement two-stage probit least squares," Stata Journal, StataCorp LP, vol. 3(2), pages 157-167, June.
    14. Singh, Inderjit & Squire, Lyn & Strauss, John, 1986. "A Survey of Agricultural Household Models: Recent Findings and Policy Implications," The World Bank Economic Review, World Bank, vol. 1(1), pages 149-179, September.
    15. Shahidur R. Khandker, Douglas F. Barnes, and Hussain A. Samad, 2012. "The Welfare Impacts of Rural Electrification in Bangladesh," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    16. Shahidur R. Khandker & Douglas F. Barnes & Hussain A. Samad, 2013. "Welfare Impacts of Rural Electrification: A Panel Data Analysis from Vietnam," Economic Development and Cultural Change, University of Chicago Press, vol. 61(3), pages 659-692.
    17. Sagar, Ambuj D., 2005. "Alleviating energy poverty for the world's poor," Energy Policy, Elsevier, vol. 33(11), pages 1367-1372, July.
    18. Dillon, Andrew & Sharma, Manohar & Zhang, Xiaobo, 2011. "Estimating the impact of rural investments in Nepal," Food Policy, Elsevier, vol. 36(2), pages 250-258, April.
    19. Michael Lokshin & Mikhail Bontch‐Osmolovski & Elena Glinskaya, 2010. "Work‐Related Migration and Poverty Reduction in Nepal," Review of Development Economics, Wiley Blackwell, vol. 14(2), pages 323-332, May.
    20. Abegaz, Assefa & van Keulen, Herman & Oosting, Simon J., 2007. "Feed resources, livestock production and soil carbon dynamics in Teghane, Northern Highlands of Ethiopia," Agricultural Systems, Elsevier, vol. 94(2), pages 391-404, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Anver C. Sadath & Rajesh H. Acharya, 2021. "Access to Modern Energy Services and Human Development in India: Has Government Policies Paid off?," International Journal of Energy Economics and Policy, Econjournals, vol. 11(3), pages 432-442.
    2. Dang, Duc Anh & La, Hai Anh, 2019. "Does electricity reliability matter? Evidence from rural Viet Nam," Energy Policy, Elsevier, vol. 131(C), pages 399-409.
    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. Pradhan Shrestha, Rosy & Jirakiattikul, Sopin & Lohani, Sunil Prasad & Shrestha, Mandip, 2023. "Perceived impact of electricity on productive end use and its reality: Transition from electricity to income for rural Nepalese women," Energy Policy, Elsevier, vol. 183(C).
    5. Kasnaeny Karim & Muhammad Jibril Tajibu & Akhmad Akhmad, 2021. "Determination of Consumer Switching Barriers to Use Prepaid Electricity Systems in the Household Sector in Makassar, Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(1), pages 193-199.
    6. Kudo, Yuya & Shonchoy, Abu S. & Takahashi, Kazushi, 2015. "Impacts of solar lanterns in geographically challenged locations : experimental evidence from Bangladesh," IDE Discussion Papers 502, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    7. Enrico Nano, 2022. "Electrifying Nigeria: the Impact of Rural Access to Electricity on Kids' Schooling," IHEID Working Papers 03-2022, Economics Section, The Graduate Institute of International Studies.
    8. Céline Nauges & Jon Strand, 2017. "Water Hauling and Girls’ School Attendance: Some New Evidence from Ghana," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 66(1), pages 65-88, January.
    9. Fujii, Tomoki & Shonchoy, Abu S., 2020. "Fertility and rural electrification in Bangladesh," Journal of Development Economics, Elsevier, vol. 143(C).
    10. Bayer, Patrick & Kennedy, Ryan & Yang, Joonseok & Urpelainen, Johannes, 2020. "The need for impact evaluation in electricity access research," Energy Policy, Elsevier, vol. 137(C).
    11. Santosh Kumar & Ganesh Rauniyar, 2018. "The impact of rural electrification on income and education: Evidence from Bhutan," Review of Development Economics, Wiley Blackwell, vol. 22(3), pages 1146-1165, August.
    12. Gupta, Ridhima & Pelli, Martino, 2021. "Electrification and cooking fuel choice in rural India," World Development, Elsevier, vol. 146(C).
    13. Opoku, Eric Evans Osei & Kufuor, Nana Kwabena & Manu, Sylvester Adasi, 2021. "Gender, electricity access, renewable energy consumption and energy efficiency," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    14. Ntsiful, Enoch & Dramani, John Bosco & Adusah-Poku, Frank & Frimpong, Prince Boakye, 2024. "Effect of electricity access on the value of women’s labour and time in Ghana," World Development Perspectives, Elsevier, vol. 35(C).
    15. Kilimani, Nicholas & Bbaale, Edward & Jeuland, Marc A., 2022. "Unmasking the Mystery of the Varying Benefits from Electrification," EfD Discussion Paper 22-6, Environment for Development, University of Gothenburg.
    16. Husnain, Muhammad Iftikhar ul & Nasrullah, Nasrullah & Khan, Muhammad Aamir & Banerjee, Suvajit, 2021. "Scrutiny of income related drivers of energy poverty: A global perspective," Energy Policy, Elsevier, vol. 157(C).
    17. Cummins, Mark & Gillanders, Robert, 2020. "Greasing the Turbines? Corruption and access to electricity in Africa," Energy Policy, Elsevier, vol. 137(C).
    18. Candelise, Chiara & Saccone, Donatella & Vallino, Elena, 2021. "An empirical assessment of the effects of electricity access on food security," World Development, Elsevier, vol. 141(C).
    19. Adom, Philip Kofi & Nsabimana, Aimable, 2022. "Rural access to electricity and welfare outcomes in Rwanda: Addressing issues of transitional heterogeneities and between and within gender disparities," Resource and Energy Economics, Elsevier, vol. 70(C).
    20. Lenz, Luciane & Munyehirwe, Anicet & Peters, Jörg & Sievert, Maximiliane, 2017. "Does Large-Scale Infrastructure Investment Alleviate Poverty? Impacts of Rwanda’s Electricity Access Roll-Out Program," World Development, Elsevier, vol. 89(C), pages 88-110.

    More about this item

    Keywords

    Energy; Electricity; Income; Economic development; Nepal;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:58:y:2016:i:c:p:222-228. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eneco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.