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Does electricity reliability matter? Evidence from rural Viet Nam

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  • Dang, Duc Anh
  • La, Hai Anh

Abstract

Using a three-round panel dataset of more than 3,000 households, the paper estimates the impacts of electricity reliability improvement on the welfare and economic decisions of rural Vietnamese households. The number of days without power outages in communes per annum is used to proxy for electricity reliability. We employ a fixed effect regression with an instrumental variable to deal with the endogeneity issue, led by the simultaneous causal relationship between the reliability of electricity and household outcomes along with the unobservable variables. We use the similar electricity quality variable but measured in other communes within the same province as an instrumental variable. Results from this model show that an improvement in electricity reliability plays an important role in enhancing incomes, durable consumption, access to credit and land investment decisions of rural households.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:enepol:v:131:y:2019:i:c:p:399-409
    DOI: 10.1016/j.enpol.2019.04.036
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    More about this item

    Keywords

    Power reliability; Household welfare; Viet Nam;
    All these keywords.

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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