Rural Electrification in Rwanda – An Impact Assessment Using Matching Techniques

37 Pages Posted: 9 Jan 2011

See all articles by Gunther Bensch

Gunther Bensch

RWI Leibniz Institute for Economic Research

Jochen Kluve

Humboldt University of Berlin; RWI; IZA

Jörg Peters

RWI - Leibniz Institute for Economic Research; University of Passau - Business Administration and Economics

Date Written: December 1, 2010

Abstract

Rural electrification is believed to contribute to the achievement of the Millennium Development Goals (MDGs) via various channels. In this paper, we investigate the impacts of electrification on the household’s lighting usage, home studying, energy expenditures and income. We use household data that we collected in rural Rwanda in villages with and without access to mini-grids. To account for self-selection processes in the connection decision we use households from the electrified villages to estimate the probability to connect for all households – including those in the non-electrified villages. Based on these propensity scores we identify counterfactual households to determine the impacts of electrification on the outcome indicators. We find some indication for positive effects on home studying and income, but particularly on lighting usage. We conclude by highlighting the potentially profound changes in social life of rural people induced by improved lighting and call for research on impacts beyond the MDGs.

Keywords: Rural electrification, ex-ante impact assessment, poverty, matching

JEL Classification: O12, O13, O18, O22

Suggested Citation

Bensch, Gunther and Kluve, Jochen and Peters, Jörg, Rural Electrification in Rwanda – An Impact Assessment Using Matching Techniques (December 1, 2010). Ruhr Economic Paper No. 231, Available at SSRN: https://ssrn.com/abstract=1735399 or http://dx.doi.org/10.2139/ssrn.1735399

Gunther Bensch

RWI Leibniz Institute for Economic Research ( email )

Hohenzollernstr. 1-3
Essen, 45128
Germany

Jochen Kluve

Humboldt University of Berlin ( email )

Spandauer Str. 1
Berlin, D-10099
Germany

RWI ( email )

Essen
Germany

IZA

P.O. Box 7240
Bonn, D-53072
Germany

Jörg Peters (Contact Author)

RWI - Leibniz Institute for Economic Research ( email )

Hohenzollernstr. 1-3
45128 Essen
Germany
0049-201-8149-247 (Phone)

HOME PAGE: http://www.rwi-essen.de

University of Passau - Business Administration and Economics ( email )

Wirtschaftswissenschaftliche Fakultaet
Passau, D-94030
Germany

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