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 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.

Bibliographic Details

Main Authors:	Khandker, Shahidur R., Barnes, Douglas F., Samad, Hussain A.
Format:	Policy Research Working Paper biblioteca
Language:	English
Published:	2009-03-01
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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