Welfare Impacts of Rural Electrification : Evidence from Vietnam
Access to electricity is crucial for economic development and there is a growing body of literature on the impact of rural electrification on development. However, most studies have so far relied on cross-sectional surveys comparing households with...
| Main Authors: | , , , |
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
2012
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| Subjects: | |
| 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_20090917100619 http://hdl.handle.net/10986/4248 |
| Summary: | Access to electricity is crucial for
economic development and there is a growing body of
literature on the impact of rural electrification on
development. However, most studies have so far relied on
cross-sectional surveys comparing households with and
without electricity, which have well known causal
attribution problems. This paper is one of the first studies
to examine the welfare impacts of households rural
electrification based on panel surveys conducted in 2002 and
2005 for some 1,100 households in rural Vietnam,. The
findings indicate that grid electrification has been both
extensive (connecting all surveyed communes by 2005) and
intensive (connecting almost 80 percent of the surveyed
households by 2005). Vietnam is unusual in that once
electricity is locally available, both rich and poor
households are equally likely to get the connection. The
econometric estimations suggest that grid electrification
has significant positive impacts on households cash income,
expenditure, and educational outcomes. The benefits,
however, reach a saturation point after prolonged exposure
to electricity. Finally, this study recommends investigating
the long-term benefits of rural electrification - not just
for households, but for the rural economy as a whole. |
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