Heterogeneous Effects of Rural Electrification : Evidence from Bangladesh

Achieving universal access to electricity is one of the most important energy policy goals set by governments in the developing world. The recent empirical literature, however, paints a mixed picture about the economic viability of rural electrific...

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Main Authors:	Samad, Hussain, Zhang, Fan
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2017
Subjects:	RURAL ELECTRIFICATION ELECTRICITY DISTRIBUTIONAL IMPACT
Online Access:	http://documents.worldbank.org/curated/en/904491497275742546/Heterogeneous-effects-of-rural-electrification-evidence-from-Bangladesh http://hdl.handle.net/10986/27302

id	okr-10986-27302
recordtype	oai_dc
spelling	okr-10986-273022021-06-08T14:42:47Z Heterogeneous Effects of Rural Electrification : Evidence from Bangladesh Samad, Hussain Zhang, Fan RURAL ELECTRIFICATION ELECTRICITY DISTRIBUTIONAL IMPACT Achieving universal access to electricity is one of the most important energy policy goals set by governments in the developing world. The recent empirical literature, however, paints a mixed picture about the economic viability of rural electrification. Although many studies find substantial socioeconomic benefits from rural electrification, others propose that these benefits are overstated. This paper examines the hypothesis that the magnitude and the nature of benefits associated with electrification are highly context dependent. Using a panel data of 7,018 rural households in Bangladesh for 2005 and 2010, the paper explores two underlying determinants of the heterogeneity: the quality of electricity supply and the number of years of being connected to the grid. The analysis uses an instrumental variable and propensity-score-weighed fixed-effects model to address potential endogeneity of electricity adoption. The analysis finds that power outages have a negative impact on almost all development outcomes considered, while some benefits of electrification accrue only over the long run. The overall gain from expanding access to and improving reliability of electricity supply in Bangladesh is estimated to be US$2.3 billion a year. 2017-06-21T20:17:03Z 2017-06-21T20:17:03Z 2017-06 Working Paper http://documents.worldbank.org/curated/en/904491497275742546/Heterogeneous-effects-of-rural-electrification-evidence-from-Bangladesh http://hdl.handle.net/10986/27302 English en_US Policy Research Working Paper;No. 8102 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper South Asia Bangladesh
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	RURAL ELECTRIFICATION ELECTRICITY DISTRIBUTIONAL IMPACT
spellingShingle	RURAL ELECTRIFICATION ELECTRICITY DISTRIBUTIONAL IMPACT Samad, Hussain Zhang, Fan Heterogeneous Effects of Rural Electrification : Evidence from Bangladesh
geographic_facet	South Asia Bangladesh
relation	Policy Research Working Paper;No. 8102
description	Achieving universal access to electricity is one of the most important energy policy goals set by governments in the developing world. The recent empirical literature, however, paints a mixed picture about the economic viability of rural electrification. Although many studies find substantial socioeconomic benefits from rural electrification, others propose that these benefits are overstated. This paper examines the hypothesis that the magnitude and the nature of benefits associated with electrification are highly context dependent. Using a panel data of 7,018 rural households in Bangladesh for 2005 and 2010, the paper explores two underlying determinants of the heterogeneity: the quality of electricity supply and the number of years of being connected to the grid. The analysis uses an instrumental variable and propensity-score-weighed fixed-effects model to address potential endogeneity of electricity adoption. The analysis finds that power outages have a negative impact on almost all development outcomes considered, while some benefits of electrification accrue only over the long run. The overall gain from expanding access to and improving reliability of electricity supply in Bangladesh is estimated to be US$2.3 billion a year.
format	Working Paper
author	Samad, Hussain Zhang, Fan
author_facet	Samad, Hussain Zhang, Fan
author_sort	Samad, Hussain
title	Heterogeneous Effects of Rural Electrification : Evidence from Bangladesh
title_short	Heterogeneous Effects of Rural Electrification : Evidence from Bangladesh
title_full	Heterogeneous Effects of Rural Electrification : Evidence from Bangladesh
title_fullStr	Heterogeneous Effects of Rural Electrification : Evidence from Bangladesh
title_full_unstemmed	Heterogeneous Effects of Rural Electrification : Evidence from Bangladesh
title_sort	heterogeneous effects of rural electrification : evidence from bangladesh
publisher	World Bank, Washington, DC
publishDate	2017
url	http://documents.worldbank.org/curated/en/904491497275742546/Heterogeneous-effects-of-rural-electrification-evidence-from-Bangladesh http://hdl.handle.net/10986/27302
_version_	1764464150707175424

Heterogeneous Effects of Rural Electrification : Evidence from Bangladesh

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