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Who Benefits Most from Rural Electrification? Evidence in India

Author

Listed:
  • 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

    as
    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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