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Benefits of electrification and the role of reliability : evidence from India

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  • Samad,Hussain A.
  • Zhang,Fan

Abstract

This paper estimates the welfare impact of rural electrification in India using nationally representative household panel survey data for 2005 and 2012. Analysis based on a propensity-score-weighted fixed-effects model finds that while electrification is associated with a broad range of social and economic benefits, the size of the effects depends importantly on the reliability of electricity service. Gaining access to electricity combined with a reliable power supply is associated with a 17 percent increase in income during the sample period, but gaining access to electricity alone is associated with only a 9.6 percent increase in income. The net gain from both increasing the access rate and reducing power outages in rural India is estimated to be US$11 billion a year. Moreover, India's rural electrification policy appears to be progressive because lower-income households benefit more from access to electricity than higher-income households during the sample period.

Suggested Citation

  • Samad,Hussain A. & Zhang,Fan, 2016. "Benefits of electrification and the role of reliability : evidence from India," Policy Research Working Paper Series 7889, The World Bank.
    • Handle: RePEc:wbk:wbrwps:7889
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    Citations

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    Cited by:

    1. Abbasi ,Mansoureh & Lebrand,Mathilde Sylvie Maria & Mongoue,Arcady Bluette & Pongou,Roland & Zhang,Fan, 2022. "Roads, Electricity, and Jobs: Evidence of Infrastructure Complementarity in Sub-Saharan Africa," Policy Research Working Paper Series 9976, The World Bank.
    2. 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.
    3. Najeeb,Fatima & Morales,Matias & Lopez-Acevedo,Gladys C., 2020. "Analyzing Female Employment Trends in South Asia," Policy Research Working Paper Series 9157, The World Bank.
    4. Fouzia Sohail & Ambreen Fatima, 2022. "An Assessment of Electricity Tariff Reforms in Karachi City: The City of Light (Article)," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 61(2), pages 259-274.
    5. Meeks, Robyn C. & Omuraliev, Arstan & Isaev, Ruslan & Wang, Zhenxuan, 2023. "Impacts of electricity quality improvements: Experimental evidence on infrastructure investments," Journal of Environmental Economics and Management, Elsevier, vol. 120(C).
    6. Daniele Menniti & Anna Pinnarelli & Nicola Sorrentino & Fiorella Stella & Caterina Aura & Claudia Liutic & Gaetano Polizzi, 2022. "A Tool to Assess the Interaction between Energy Efficiency, Demand Response, and Power System Reliability," Energies, MDPI, vol. 15(15), pages 1-12, July.
    7. Heyes, Anthony & Saberian, Soodeh, 2022. "Hot Days, the ability to Work and climate resilience: Evidence from a representative sample of 42,152 Indian households," Journal of Development Economics, Elsevier, vol. 155(C).
    8. Li, Jianglong & Ho, Mun Sing & Xie, Chunping & Stern, Nicholas, 2022. "China's flexibility challenge in achieving carbon neutrality by 2060," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
    9. Nag, Suryadeepto, 2024. "Does reliable electricity mean lesser agricultural labor wages? Evidence from Indian villages," Energy Policy, Elsevier, vol. 190(C).
    10. Hashemi, Majid, 2021. "The economic value of unsupplied electricity: Evidence from Nepal," Energy Economics, Elsevier, vol. 95(C).
    11. Alex Musetti & Hossein Sadegh Lafmejani & Alessandro Soldati, 2022. "Control and Design of a Boost-Based Electrolytic Capacitor-Less Single-Phase-Input Drive," Energies, MDPI, vol. 15(16), pages 1-14, August.
    12. Paul Nduhuura & Matthias Garschagen & Abdellatif Zerga, 2021. "Impacts of Electricity Outages in Urban Households in Developing Countries: A Case of Accra, Ghana," Energies, MDPI, vol. 14(12), pages 1-26, June.

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