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Who Benefits Most from Rural Electrification? Evidence in India

Author

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  • Shahidur R. Khandker
  • Hussain A. Samad
  • Rubaba Ali
  • Douglas F. Barnes

Abstract

This paper applies an econometric analysis to estimate the average and distribution benefits of rural electrification using rich household survey data from India. The results support that rural electrification helps reduce time allocated to fuel wood collection by household members and increases time allocated to studying by boys and girls. Rural electrification also increases labor supply of men and women, schooling of boys and girls, household per capita income and expenditure. Electrification also helps reduce poverty. But the larger share of benefits accrues to wealthier rural households, with poorer ones having a more limited use of electricity. The analysis also shows that restricted supply of electricity, due to frequent power outages, negatively affects both household electricity connection and its consumption, thereby reducing the expected benefits of rural electrification.

Suggested Citation

  • Shahidur R. Khandker & Hussain A. Samad & Rubaba Ali & Douglas F. Barnes, 2014. "Who Benefits Most from Rural Electrification? Evidence in India," The Energy Journal, , vol. 35(2), pages 75-96, April.
    • Handle: RePEc:sae:enejou:v:35:y:2014:i:2:p:75-96
    DOI: 10.5547/01956574.35.2.4
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    References listed on IDEAS

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    1. Taryn Dinkelman, 2011. "The Effects of Rural Electrification on Employment: New Evidence from South Africa," American Economic Review, American Economic Association, vol. 101(7), pages 3078-3108, December.
    2. World Bank, 2001. "India : Power Supply to Agriculture, Volume 2. Haryana Case Study," World Bank Publications - Reports 15285, The World Bank Group.
    3. World Bank, 2001. "India : Power Supply to Agriculture, Volume 3. Andhra Pradesh Case Study," World Bank Publications - Reports 15279, The World Bank Group.
    4. World Bank, 2001. "India : Power Supply to Agriculture, Volume 1. Summary Report," World Bank Publications - Reports 15288, The World Bank Group.
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    1. Kamanyire, Maxwell Clovice & Matovu, Fred & Wabiga, Paul, 2024. "Electricity Accessibility and Household Business Start-ups in Rural Uganda: Evidence from Quasi-Experimental Analysis," African Journal of Economic Review, African Journal of Economic Review, vol. 12(3), September.
    2. Ly, Alpha & Chakir, Raja & Creti, Anna, 2024. "Electrification or deforestation? Evidence from household practices in Côte d’Ivoire," Energy Economics, Elsevier, vol. 136(C).
    3. Somdeep Chatterjee & Shiv Hastawala & Jai Kamal, 2023. "(En‐)‘lightening’ children: Assessing the impacts of access to electricity on learning achievement levels," Review of Development Economics, Wiley Blackwell, vol. 27(4), pages 2489-2517, November.
    4. Ezebuihe, Jessy Amarachi & Parlasca, Martin & Qaim, Matin, 2024. "Links between rural electrification and gendered off-farm employment in sub-Saharan Africa," Discussion Papers 348434, University of Bonn, Center for Development Research (ZEF).
    5. 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).

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