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The Impact of Micro Hydroelectricity on Household Welfare Indicators

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  • Karumba, Mary Muthoni
  • Muchapondwa, Edwin

Abstract

The use of small-scale off-grid renewable energy for rural electrification is now seen as one sustainable energy solution. The expectations from such small-scale investment include meeting basic household energy needs and thereby improving some aspects of household welfare. However, these stated benefits remain largely hypothetical because there are data and methodological challenges in existing literature attempting to isolate such impacts. This paper uses field data from micro hydro schemes in Kenya and a propensity score matching technique to demonstrate such an impact. We find that, on average, households connected to micro hydroelectricity consume 1.5 litres less kerosene per month compared to households without any such electricity connection. Also, non-connected households spend 0.92 USD more for re-charging their cell phone batteries per month in comparison to those who were using micro hydroelectricity service. Finally, school children from households that are connected to micro hydroelectricity were found to devote 43 minutes less to evening studies compared to those without electricity. The findings provide interesting insights about some of the claims made for or against the use of off-grid renewable energy for rural electrification.

Suggested Citation

  • Karumba, Mary Muthoni & Muchapondwa, Edwin, 2017. "The Impact of Micro Hydroelectricity on Household Welfare Indicators," EfD Discussion Paper 17-20, Environment for Development, University of Gothenburg.
    • Handle: RePEc:hhs:gunefd:2017_020
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    Cited by:

    1. 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.
    2. Bruno Domenech & Laia Ferrer‐Martí & Rafael Pastor, 2019. "Comparison of various approaches to design wind‐PV rural electrification projects in remote areas of developing countries," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 8(3), May.
    3. Tarekegn Mamo Legamo & Milan casny & Workalemahu Tasew, 2021. "Energy Expenditure and Fuel Choices among Households in the Sidama Region, Southern Ethiopia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(2), pages 315-324.
    4. Holstenkamp, Lars, 2019. "What do we know about cooperative sustainable electrification in the global South? A synthesis of the literature and refined social-ecological systems framework," Renewable and Sustainable Energy Reviews, Elsevier, vol. 109(C), pages 307-320.

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    More about this item

    Keywords

    Micro hydro; rural electrification; impact; Kenya;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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