Who Benefits Most from Rural Electrification? Evidence in India

39 Pages Posted: 20 Apr 2016

See all articles by Shahidur R. Khandker

Shahidur R. Khandker

World Bank - Development Research Group (DECRG)

Hussain A. Samad

World Bank

Rubaba Ali

World Bank; University of Maryland

Douglas F. Barnes

World Bank

Date Written: June 1, 2012

Abstract

This paper applies an econometric analysis to estimate the average and distribution benefits of rural electrification using rich household survey data from India. The results support that rural electrification helps to reduce time allocated to fuelwood collection by household members and increases time allocated to studying by boys and girls. Rural electrification also increases the labor supply of men and women, schooling of boys and girls, and household per capita income and expenditure. Electrification also helps reduce poverty. But the larger share of benefits accrues to wealthier rural households, with poorer ones having more limited use of electricity. The analysis also shows that restricted supply of electricity, due to frequent power outages, negatively affects both household electricity connection and its consumption, thereby reducing the expected benefits of rural electrification.

Keywords: Energy Production and Transportation, Rural Poverty Reduction, Engineering, Electric Power, Energy and Poverty Alleviation

Suggested Citation

Khandker, Shahidur R. and Samad, Hussain A. and Ali, Rubaba and Barnes, Douglas F., Who Benefits Most from Rural Electrification? Evidence in India (June 1, 2012). World Bank Policy Research Working Paper No. 6095, Available at SSRN: https://ssrn.com/abstract=2087320

Shahidur R. Khandker (Contact Author)

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

Hussain A. Samad

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Rubaba Ali

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

University of Maryland ( email )

College Park
College Park, MD 20742
United States

Douglas F. Barnes

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

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