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Welfare Impacts of Rural Electrification : Evidence from Vietnam

Author: Shahidur R Khandker; Douglas F Barnes; Nguyen Huu Minh; Hussain Samad
Publisher: Washington, D.C. : The World Bank, 2009.
Series: Policy research working papers.; World Bank e-Library.
Edition/Format:   eBook : Document : International government publication : English
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{u2019}  Read more...
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Genre/Form: Electronic books
Additional Physical Format: Print version:
Khandker, Shahidur R.
Welfare Impacts of Rural Electrification.
Washington, D.C., The World Bank, 2009
Material Type: Document, Government publication, International government publication, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Shahidur R Khandker; Douglas F Barnes; Nguyen Huu Minh; Hussain Samad
OCLC Number: 794535136
Description: 1 online resource (51 pages)
Series Title: Policy research working papers.; World Bank e-Library.
Responsibility: Khandker, Shahidur R.

Abstract:

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{u2019} 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{u2019} 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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