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 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.

Bibliographic Details

Main Authors:	Barnes, Douglas F., Khandker, Shahidur R., Minh, Nguyen Huu, Samad, Hussain
Language:	English
Published:	2009-09-01
Subjects:	ACCESS TO ELECTRICITY, ACCESS TO GRID ELECTRICITY, ACCESS TO INFORMATION, AFFORDABILITY, ANTI-POVERTY, APPROACH, AVAILABILITY, BANK OFFICE, BATTERIES, BENEFITS OF ELECTRIFICATION, BIASES, CASH EXPENDITURE, CONVERSION RATE, COUNTERFACTUAL, COVERS, DEMAND FOR ELECTRICITY, DIESEL, DIESEL ENGINE, DYNAMICS, EARNINGS, ECONOMIC ACTIVITIES, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, EDUCATIONAL ATTAINMENT, EDUCATIONAL LEVELS, ELECTRIC APPLIANCES, ELECTRIC LIGHTING, ELECTRIC POWER, ELECTRIC POWER SECTOR, ELECTRIC PUMPS, ELECTRICITY ACCESS, ELECTRICITY CONSUMPTION, ELECTRICITY DEMAND, ELECTRICITY DISTRIBUTION, ELECTRICITY DISTRIBUTION COMPANIES, ELECTRICITY GRID, ELECTRICITY NEEDS, ELECTRICITY SECTOR, ELECTRICITY SUPPLY, ELECTRICITY SYSTEMS, ELECTRICITY USE, ELECTRIFICATION PROJECT, ELIGIBILITY CRITERIA, ENDOWMENTS, ENROLLMENT, ENTREPRENEURIAL ABILITY, EQUAL TREATMENT, EQUALITY, EXPENDITURE, EXPENDITURES, FANS, FARM ACTIVITIES, FARM INCOME, FARM PRODUCTION, FARM PRODUCTIVITY, FIXED ASSETS, FOOD ITEMS, GENDER, GENERATION, GRID CONNECTION, GRID ELECTRICITY, GRID ELECTRIFICATION, HOUSEHOLD CHORES, HOUSEHOLD ELECTRICITY CONSUMPTION, HOUSEHOLD FACTORS, HOUSEHOLD HEAD, HOUSEHOLD INCOME, HOUSEHOLD SURVEY, HOUSEHOLD WELFARE, HOUSEHOLDS, INCOME DYNAMICS, INCOME GAINS, INDUSTRIAL ENTERPRISES, INSTITUTIONAL REFORMS, INTERNATIONAL BANK, IRRIGATION, KEROSENE, MACHINERY, POOR, POOR HOUSEHOLDS, POVERTY PROGRAMS, POVERTY REDUCTION, POWER, POWER COMPANY, POWER PLANT, POWER SECTOR, PRIVATE INVESTORS, RUNNING WATER, RURAL, RURAL AREAS, RURAL DEVELOPMENT, RURAL ECONOMIC GROWTH, RURAL ECONOMY, RURAL ELECTRICITY, RURAL ELECTRIFICATION, RURAL ENERGY, RURAL GROWTH, RURAL HOUSEHOLD, RURAL HOUSEHOLDS, RURAL LIFE, RURAL PEOPLE, RURAL POOR, RURAL RESIDENTS, RURAL WELFARE, SMALL BUSINESS, SOURCE OF FUNDS, STRUCTURES, TECHNICAL ASSISTANCE, TOOLS, TRANSITIONS, TRANSPORT, URBAN DEVELOPMENT, WAR, WATER FLOW, WELFARE INDICATORS, WIND, WIND POWER,
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 https://hdl.handle.net/10986/4248
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