Welfare Impacts of Rural Electrification : A Case Study from Bangladesh

Lack of access to electricity is one of the major impediments to growth and development of the rural economies in developing countries. That is why access to modern energy, in particular to electricity, has been one of the priority themes of the Wo...

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Main Authors:	Khandker, Shahidur R., Barnes, Douglas F., Samad, Hussain A.
Format:	Policy Research Working Paper
Language:	English
Published:	2012
Subjects:	ACCESS TO ELECTRICITY ACCESS TO INFORMATION ACCESS TO MODERN ENERGY ANTI-POVERTY APPROACH AVAILABILITY BALANCE BENEFITS OF ELECTRIFICATION BIASES COSTS OF ELECTRICITY COUNTERFACTUAL COVERS CROP PRODUCTION DEDUCTIBLES DEMAND FOR ELECTRICITY DEVELOPMENT BANK DIESEL DISTRIBUTION FACILITIES DONOR SUPPORT DRINKING WATER ECONOMIC ACTIVITIES EDUCATIONAL ATTAINMENT ELECTRIC APPLIANCES ELECTRIC LIGHTING ELECTRIC PUMPS ELECTRIC SUPPLY ELECTRICITY ACCESS ELECTRICITY CONSUMPTION ELECTRICITY DISTRIBUTION ELECTRICITY DISTRIBUTION COMPANIES ELECTRICITY PRICE ELECTRICITY USE ELECTRIFICATION PROJECT EMPOWERMENT ENDOWMENTS ENERGY CONSUMPTION ENERGY DEMAND ENERGY SOURCE ENERGY STRATEGY ENERGY USE ENGINEERING EXPENDITURE EXPENDITURES FANS FARM ACTIVITIES FARMERS FUELS GENDER GENERATION GRID CONNECTION GRID ELECTRICITY GRID ELECTRICITY SERVICE GRID ELECTRIFICATION HEALTH INSURANCE HOUSEHOLD FACTORS HOUSEHOLD HEAD HOUSEHOLD INCOME HOUSEHOLD PARTICIPATION HOUSEHOLD WELFARE HOUSEHOLD WELFARES HOUSEHOLDS HUMAN CAPITAL HUMAN CAPITAL ENDOWMENTS INCOME GAINS INCOME GROWTH INDUSTRIAL ENTERPRISES INFORMATION ACCESS INSURANCE INTERNATIONAL BANK IRRIGATION KEROSENE KEROSENE LAMPS LACK OF ACCESS LAND ASSET LAND ASSETS LANDHOLDINGS MACHINERY MASS NONFARM INCOME OPERATING COSTS PHYSICAL ASSETS PHYSICAL CAPITAL POOR POOR FARMERS POOR HOUSEHOLDS POVERTY PROGRAMS POWER POWER CRISIS POWER SECTOR PRICE OF ELECTRICITY PUMPS RENEWABLE ENERGY RENEWABLE ENERGY PROGRAM RETAIL ENTERPRISES RURAL RURAL AREAS RURAL ELECTRIC RURAL ELECTRIC COOPERATIVES RURAL ELECTRIFICATION RURAL ENERGY RURAL HOUSEHOLD RURAL HOUSEHOLDS RURAL PEOPLE RURAL POOR RURAL POVERTY SANITATION SOLAR HOME SYSTEM SOLAR HOME SYSTEMS TOOLS URBAN DEVELOPMENT VILLAGE VILLAGE ELECTRIFICATION VILLAGES WELFARE INDICATORS
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=000158349_20090309084132 http://hdl.handle.net/10986/4055

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spelling	okr-10986-40552021-04-23T14:02:14Z Welfare Impacts of Rural Electrification : A Case Study from Bangladesh Khandker, Shahidur R. Barnes, Douglas F. Samad, Hussain A. ACCESS TO ELECTRICITY ACCESS TO INFORMATION ACCESS TO MODERN ENERGY ANTI-POVERTY APPROACH AVAILABILITY BALANCE BENEFITS OF ELECTRIFICATION BIASES COSTS OF ELECTRICITY COUNTERFACTUAL COVERS CROP PRODUCTION DEDUCTIBLES DEMAND FOR ELECTRICITY DEVELOPMENT BANK DIESEL DISTRIBUTION FACILITIES DONOR SUPPORT DRINKING WATER ECONOMIC ACTIVITIES EDUCATIONAL ATTAINMENT ELECTRIC APPLIANCES ELECTRIC LIGHTING ELECTRIC PUMPS ELECTRIC SUPPLY ELECTRICITY ACCESS ELECTRICITY CONSUMPTION ELECTRICITY DISTRIBUTION ELECTRICITY DISTRIBUTION COMPANIES ELECTRICITY PRICE ELECTRICITY USE ELECTRIFICATION PROJECT EMPOWERMENT ENDOWMENTS ENERGY CONSUMPTION ENERGY DEMAND ENERGY SOURCE ENERGY STRATEGY ENERGY USE ENGINEERING EXPENDITURE EXPENDITURES FANS FARM ACTIVITIES FARMERS FUELS GENDER GENERATION GRID CONNECTION GRID ELECTRICITY GRID ELECTRICITY SERVICE GRID ELECTRIFICATION HEALTH INSURANCE HOUSEHOLD FACTORS HOUSEHOLD HEAD HOUSEHOLD INCOME HOUSEHOLD PARTICIPATION HOUSEHOLD WELFARE HOUSEHOLD WELFARES HOUSEHOLDS HUMAN CAPITAL HUMAN CAPITAL ENDOWMENTS INCOME GAINS INCOME GROWTH INDUSTRIAL ENTERPRISES INFORMATION ACCESS INSURANCE INTERNATIONAL BANK IRRIGATION KEROSENE KEROSENE LAMPS LACK OF ACCESS LAND ASSET LAND ASSETS LANDHOLDINGS MACHINERY MASS NONFARM INCOME OPERATING COSTS PHYSICAL ASSETS PHYSICAL CAPITAL POOR POOR FARMERS POOR HOUSEHOLDS POVERTY PROGRAMS POWER POWER CRISIS POWER SECTOR PRICE OF ELECTRICITY PUMPS RENEWABLE ENERGY RENEWABLE ENERGY PROGRAM RETAIL ENTERPRISES RURAL RURAL AREAS RURAL ELECTRIC RURAL ELECTRIC COOPERATIVES RURAL ELECTRIFICATION RURAL ENERGY RURAL HOUSEHOLD RURAL HOUSEHOLDS RURAL PEOPLE RURAL POOR RURAL POVERTY SANITATION SOLAR HOME SYSTEM SOLAR HOME SYSTEMS TOOLS URBAN DEVELOPMENT VILLAGE VILLAGE ELECTRIFICATION VILLAGES WELFARE INDICATORS Lack of access to electricity is one of the major impediments to growth and development of the rural economies in developing countries. That is why access to modern energy, in particular to electricity, has been one of the priority themes of the World Bank and other development organizations. Using a cross-sectional survey conducted in 2005 of some 20,000 households in rural Bangladesh, this paper studies the welfare impacts of households' grid connectivity. Based on rigorous econometric estimation techniques, this study finds that grid electrification has significant positive impacts on households' income, expenditure, and educational outcomes. For example, the gain in total income due to electrification can be as much as 30 percent and as low as 9 percent. Benefits go up steadily as household exposure to grid electrification (measured by duration) increases and eventually reach a plateau. This paper also finds that rich households benefit more from electrification than poor households. Finally, estimates also show that income benefits of electrification on an average exceed cost by a wide margin. 2012-03-19T19:09:10Z 2012-03-19T19:09:10Z 2009-03-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090309084132 http://hdl.handle.net/10986/4055 English Policy Research working paper ; no. WPS 4859 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper South Asia South Asia South Asia Asia Bangladesh
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ACCESS TO ELECTRICITY ACCESS TO INFORMATION ACCESS TO MODERN ENERGY ANTI-POVERTY APPROACH AVAILABILITY BALANCE BENEFITS OF ELECTRIFICATION BIASES COSTS OF ELECTRICITY COUNTERFACTUAL COVERS CROP PRODUCTION DEDUCTIBLES DEMAND FOR ELECTRICITY DEVELOPMENT BANK DIESEL DISTRIBUTION FACILITIES DONOR SUPPORT DRINKING WATER ECONOMIC ACTIVITIES EDUCATIONAL ATTAINMENT ELECTRIC APPLIANCES ELECTRIC LIGHTING ELECTRIC PUMPS ELECTRIC SUPPLY ELECTRICITY ACCESS ELECTRICITY CONSUMPTION ELECTRICITY DISTRIBUTION ELECTRICITY DISTRIBUTION COMPANIES ELECTRICITY PRICE ELECTRICITY USE ELECTRIFICATION PROJECT EMPOWERMENT ENDOWMENTS ENERGY CONSUMPTION ENERGY DEMAND ENERGY SOURCE ENERGY STRATEGY ENERGY USE ENGINEERING EXPENDITURE EXPENDITURES FANS FARM ACTIVITIES FARMERS FUELS GENDER GENERATION GRID CONNECTION GRID ELECTRICITY GRID ELECTRICITY SERVICE GRID ELECTRIFICATION HEALTH INSURANCE HOUSEHOLD FACTORS HOUSEHOLD HEAD HOUSEHOLD INCOME HOUSEHOLD PARTICIPATION HOUSEHOLD WELFARE HOUSEHOLD WELFARES HOUSEHOLDS HUMAN CAPITAL HUMAN CAPITAL ENDOWMENTS INCOME GAINS INCOME GROWTH INDUSTRIAL ENTERPRISES INFORMATION ACCESS INSURANCE INTERNATIONAL BANK IRRIGATION KEROSENE KEROSENE LAMPS LACK OF ACCESS LAND ASSET LAND ASSETS LANDHOLDINGS MACHINERY MASS NONFARM INCOME OPERATING COSTS PHYSICAL ASSETS PHYSICAL CAPITAL POOR POOR FARMERS POOR HOUSEHOLDS POVERTY PROGRAMS POWER POWER CRISIS POWER SECTOR PRICE OF ELECTRICITY PUMPS RENEWABLE ENERGY RENEWABLE ENERGY PROGRAM RETAIL ENTERPRISES RURAL RURAL AREAS RURAL ELECTRIC RURAL ELECTRIC COOPERATIVES RURAL ELECTRIFICATION RURAL ENERGY RURAL HOUSEHOLD RURAL HOUSEHOLDS RURAL PEOPLE RURAL POOR RURAL POVERTY SANITATION SOLAR HOME SYSTEM SOLAR HOME SYSTEMS TOOLS URBAN DEVELOPMENT VILLAGE VILLAGE ELECTRIFICATION VILLAGES WELFARE INDICATORS
spellingShingle	ACCESS TO ELECTRICITY ACCESS TO INFORMATION ACCESS TO MODERN ENERGY ANTI-POVERTY APPROACH AVAILABILITY BALANCE BENEFITS OF ELECTRIFICATION BIASES COSTS OF ELECTRICITY COUNTERFACTUAL COVERS CROP PRODUCTION DEDUCTIBLES DEMAND FOR ELECTRICITY DEVELOPMENT BANK DIESEL DISTRIBUTION FACILITIES DONOR SUPPORT DRINKING WATER ECONOMIC ACTIVITIES EDUCATIONAL ATTAINMENT ELECTRIC APPLIANCES ELECTRIC LIGHTING ELECTRIC PUMPS ELECTRIC SUPPLY ELECTRICITY ACCESS ELECTRICITY CONSUMPTION ELECTRICITY DISTRIBUTION ELECTRICITY DISTRIBUTION COMPANIES ELECTRICITY PRICE ELECTRICITY USE ELECTRIFICATION PROJECT EMPOWERMENT ENDOWMENTS ENERGY CONSUMPTION ENERGY DEMAND ENERGY SOURCE ENERGY STRATEGY ENERGY USE ENGINEERING EXPENDITURE EXPENDITURES FANS FARM ACTIVITIES FARMERS FUELS GENDER GENERATION GRID CONNECTION GRID ELECTRICITY GRID ELECTRICITY SERVICE GRID ELECTRIFICATION HEALTH INSURANCE HOUSEHOLD FACTORS HOUSEHOLD HEAD HOUSEHOLD INCOME HOUSEHOLD PARTICIPATION HOUSEHOLD WELFARE HOUSEHOLD WELFARES HOUSEHOLDS HUMAN CAPITAL HUMAN CAPITAL ENDOWMENTS INCOME GAINS INCOME GROWTH INDUSTRIAL ENTERPRISES INFORMATION ACCESS INSURANCE INTERNATIONAL BANK IRRIGATION KEROSENE KEROSENE LAMPS LACK OF ACCESS LAND ASSET LAND ASSETS LANDHOLDINGS MACHINERY MASS NONFARM INCOME OPERATING COSTS PHYSICAL ASSETS PHYSICAL CAPITAL POOR POOR FARMERS POOR HOUSEHOLDS POVERTY PROGRAMS POWER POWER CRISIS POWER SECTOR PRICE OF ELECTRICITY PUMPS RENEWABLE ENERGY RENEWABLE ENERGY PROGRAM RETAIL ENTERPRISES RURAL RURAL AREAS RURAL ELECTRIC RURAL ELECTRIC COOPERATIVES RURAL ELECTRIFICATION RURAL ENERGY RURAL HOUSEHOLD RURAL HOUSEHOLDS RURAL PEOPLE RURAL POOR RURAL POVERTY SANITATION SOLAR HOME SYSTEM SOLAR HOME SYSTEMS TOOLS URBAN DEVELOPMENT VILLAGE VILLAGE ELECTRIFICATION VILLAGES WELFARE INDICATORS Khandker, Shahidur R. Barnes, Douglas F. Samad, Hussain A. Welfare Impacts of Rural Electrification : A Case Study from Bangladesh
geographic_facet	South Asia South Asia South Asia Asia Bangladesh
relation	Policy Research working paper ; no. WPS 4859
description	Lack of access to electricity is one of the major impediments to growth and development of the rural economies in developing countries. That is why access to modern energy, in particular to electricity, has been one of the priority themes of the World Bank and other development organizations. Using a cross-sectional survey conducted in 2005 of some 20,000 households in rural Bangladesh, this paper studies the welfare impacts of households' grid connectivity. Based on rigorous econometric estimation techniques, this study finds that grid electrification has significant positive impacts on households' income, expenditure, and educational outcomes. For example, the gain in total income due to electrification can be as much as 30 percent and as low as 9 percent. Benefits go up steadily as household exposure to grid electrification (measured by duration) increases and eventually reach a plateau. This paper also finds that rich households benefit more from electrification than poor households. Finally, estimates also show that income benefits of electrification on an average exceed cost by a wide margin.
format	Publications & Research :: Policy Research Working Paper
author	Khandker, Shahidur R. Barnes, Douglas F. Samad, Hussain A.
author_facet	Khandker, Shahidur R. Barnes, Douglas F. Samad, Hussain A.
author_sort	Khandker, Shahidur R.
title	Welfare Impacts of Rural Electrification : A Case Study from Bangladesh
title_short	Welfare Impacts of Rural Electrification : A Case Study from Bangladesh
title_full	Welfare Impacts of Rural Electrification : A Case Study from Bangladesh
title_fullStr	Welfare Impacts of Rural Electrification : A Case Study from Bangladesh
title_full_unstemmed	Welfare Impacts of Rural Electrification : A Case Study from Bangladesh
title_sort	welfare impacts of rural electrification : a case study from bangladesh
publishDate	2012
url	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090309084132 http://hdl.handle.net/10986/4055
_version_	1764389710044594176

Welfare Impacts of Rural Electrification : A Case Study from Bangladesh

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