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The Impact of Rural Electrification on Income and Education: Evidence from Bhutan

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  • Santosh Kumar

    (Department of Economics and International Business, Sam Houston State University)

  • Ganesh Rauniyar

    (Independent Evaluator, Paraparaumu, New Zealand)

Abstract

We investigate the impact of a rural electrification program on household income and children’s schooling in rural Bhutan. Using Propensity Score Matching, we find that electrification had a statistically significant impact on non-farm income and education. Non-farm income increased by 61 percent and children gained 0.72 additional years of schooling and 9 minutes of study time per day. We do not observe significant effects on farm income. Results are consistent and robust to different matching algorithms. Our findings indicate that investments in reducing energy deficit may help improve human welfare in Bhutan.

Suggested Citation

  • Santosh Kumar & Ganesh Rauniyar, 2018. "The Impact of Rural Electrification on Income and Education: Evidence from Bhutan," Working Papers 1801, Sam Houston State University, Department of Economics and International Business.
    • Handle: RePEc:shs:wpaper:1801
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    2. Leduchowicz-Municio, A. & López-Gozález, A. & Domenech, B. & Ferrer-Martí, L. & Udaeta, M.E.M. & Gimenes, A.L.V., 2022. "Last-mile rural electrification: Lessons learned from universalization programs in Brazil and Venezuela," Energy Policy, Elsevier, vol. 167(C).
    3. Ngawang Dendup, 2021. "Returns to Grid Electricity on Firewood Consumption and Mechanism," Working Papers 2109, Waseda University, Faculty of Political Science and Economics.
    4. Richard S. J. Tol, 2023. "Navigating the energy trilemma during geopolitical and environmental crises," Papers 2301.07671, arXiv.org.
    5. Annika Groth, 2020. "Overcoming One-way Impact Evaluation of Rural Electrification Projects," International Journal of Energy Economics and Policy, Econjournals, vol. 10(2), pages 464-476.
    6. Hongyun Zheng & Wanglin Ma, 2022. "Scan the QR Code of Happiness: Can Mobile Payment Adoption Make People Happier?," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 17(4), pages 2299-2310, August.
    7. Nag, Suryadeepto, 2024. "Does reliable electricity mean lesser agricultural labor wages? Evidence from Indian villages," Energy Policy, Elsevier, vol. 190(C).
    8. Huang, Ruting & Yao, Xin, 2023. "The role of power transmission infrastructure in income inequality: Fresh evidence from China," Energy Policy, Elsevier, vol. 177(C).
    9. Akter, Sonia & Mathew, Nikhitha Mary & Fila, Marian Edward, 2023. "The impact of an improvement in the quality and reliability of rural residential electricity supply on clean cooking fuel adoption: Evidence from six energy poor Indian states," World Development, Elsevier, vol. 172(C).
    10. Dendup, Ngawang, 2022. "Returns to grid electricity on firewood and kerosene: Mechanism," Journal of Environmental Economics and Management, Elsevier, vol. 111(C).
    11. Adom, Philip Kofi & Nsabimana, Aimable, 2022. "Rural access to electricity and welfare outcomes in Rwanda: Addressing issues of transitional heterogeneities and between and within gender disparities," Resource and Energy Economics, Elsevier, vol. 70(C).
    12. Ongo Nkoa, Bruno Emmanuel & Tadadjeu, Sosson & Njangang, Henri, 2023. "Rich in the dark: Natural resources and energy poverty in Sub-Saharan Africa," Resources Policy, Elsevier, vol. 80(C).
    13. Enrico Nano, 2022. "Electrifying Nigeria: the Impact of Rural Access to Electricity on Kids' Schooling," IHEID Working Papers 03-2022, Economics Section, The Graduate Institute of International Studies.
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    More about this item

    Keywords

    Rural electrification; income; education; Bhutan;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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