A New Slant on Slopes : Measuring the Benefits of Increased Electricity Access in Developing Countries

The objective of this paper is to shed some light on the benefits of improved access to electricity supply, specifically the benefits referred to as, 'consumer's surplus', which is the difference between what customers are willing to...

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Bibliographic Details
Main Author: World Bank
Format: Energy Study
Language:English
Published: World Bank 2012
Subjects:
AIR
CO
GDP
TIN
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000333037_20110405234754
http://hdl.handle.net/10986/2742
Description
Summary:The objective of this paper is to shed some light on the benefits of improved access to electricity supply, specifically the benefits referred to as, 'consumer's surplus', which is the difference between what customers are willing to pay for the utilities associated with electricity access and the price that they actually pay. The paper leads to several important policy messages for the preparation of investments aiming to increase energy access in developing countries: consumer surplus as the measure for estimating benefits of enlarged access by households to public electricity supply needs to be used with caution; make sure that benefits of increased access to electricity are measured both in terms of gains in consumer surplus and gains in real income from electrification; plan electricity access expansion taking into account that reinforced electricity access may increase consumption of electricity modestly; plan electrification along with accompanying measures to ease access to electricity consuming appliances; and strengthen public data on energy consumption. The paper leads to specific conclusions relative to: the methodology to calculate benefits of increased electricity access; demand patterns for lighting purposes; demand patterns for entertainment and information purposes, and (4) other uses of energy.