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Challenges of decentralized electrification for economic development: lessons from experience

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  • Jean-Claude Berthélemy

    (FERDI - Fondation pour les Etudes et Recherches sur le Développement International, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, UP1 UFR02 - Université Paris 1 Panthéon-Sorbonne - École d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne)

Abstract

This paper uses a meta-analysis to investigate the challenges of decentralized electrification for economic development. It uses an original database which has evaluation data on more than 400 projects. Technological innovations, notably for solar energy, are opening new space for electrification policy, based on off-grid systems, which are particularly relevant for remote rural areas. However there are two main challenges. Firstly due to the threshold effects associated with the size of the projects based on nano size systems, typically the popular Solar Home Systems (SHS). Nano systems do not reliably lead to the transformation effects which are necessary to ensure economic sustainability. This may lead to a poverty trap. Secondly the bigger the system, the bigger the need to organize collective action for planning, installation, and management. This collective action requires proper governance structures, which can be designed using Ostrom's framework for the management of common pools of resources.

Suggested Citation

  • Jean-Claude Berthélemy, 2019. "Challenges of decentralized electrification for economic development: lessons from experience," Post-Print hal-02394467, HAL.
    • Handle: RePEc:hal:journl:hal-02394467
    Note: View the original document on HAL open archive server: https://hal.science/hal-02394467
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    References listed on IDEAS

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    1. Aart Kraay & David McKenzie, 2014. "Do Poverty Traps Exist? Assessing the Evidence," Journal of Economic Perspectives, American Economic Association, vol. 28(3), pages 127-148, Summer.
    2. Peters, Jörg & Vance, Colin & Harsdorff, Marek, 2011. "Grid Extension in Rural Benin: Micro-Manufacturers and the Electrification Trap," World Development, Elsevier, vol. 39(5), pages 773-783, May.
    3. Ijae, 1999. "Reviews in Brief," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 54(4), December.
    4. Ijae, 1999. "Reviews in Brief," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 54(2), June.
    5. Yuya Kudo & Abu S Shonchoy & Kazushi Takahashi, 2019. "Can Solar Lanterns Improve Youth Academic Performance? Experimental Evidence from Bangladesh," The World Bank Economic Review, World Bank, vol. 33(2), pages 436-460.
    6. Ijae, 1999. "Reviews in Brief," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 54(1), March.
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    Cited by:

    1. Fatoumata Nankoto Cissé, 2022. "How impact evaluation methods influence the outcomes of development projects? Evidence from a meta-analysis on decentralized solar nano projects," Post-Print halshs-03623394, HAL.
    2. Fatoumata Nankoto Cissé, 2022. "How impact evaluation methods influence the outcomes of development projects? Evidence from a meta-analysis on decentralized solar nano projects," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-03623394, HAL.

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    Keywords

    Decentralized electrification; sustainable development; impact assessment; meta-analysis; poverty traps; common pool of resource;
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