Does the Quality of Electricity Matter? Evidence from Rural India

36 Pages Posted: 13 Nov 2013 Last revised: 9 May 2014

See all articles by Ujjayant Chakravorty

Ujjayant Chakravorty

Tufts University

Martino Pelli

Université de Sherbrooke; University of Montreal - Center for Interuniversity Research in Econometrics; Center for Interuniversity Research and Analysis on Organization (CIRANO)

Beyza P. Ural Marchand

University of Alberta - Faculty of Arts

Date Written: April 2014

Abstract

This paper estimates the returns to household income due to improved access to electricity in rural India. We examine the effect of connecting a household to the grid and the quality of electricity, defined as hours of daily supply. The analysis is based on two rounds of a representative panel of more than 10,000 households. We use the district-level density of transmission cables as instrument for the electrification status of the household. We find that a grid connection increases non-agricultural incomes of rural households by about 9 percent during the study period (1994-2005). However, a grid connection and a higher quality of electricity (in terms of fewer outages and more hours per day) increases non-agricultural incomes by about 28.6 percent in the same period.

Keywords: electricity supply, quality, India, energy and development, infrastructure

JEL Classification: O120, O180, Q480

Suggested Citation

Chakravorty, Ujjayant and Pelli, Martino and Ural Marchand, Beyza P., Does the Quality of Electricity Matter? Evidence from Rural India (April 2014). CESifo Working Paper Series No. 4457, Available at SSRN: https://ssrn.com/abstract=2353307

Ujjayant Chakravorty (Contact Author)

Tufts University ( email )

Medford, MA 02155
United States

Martino Pelli

Université de Sherbrooke ( email )

2500, Blvd de l'Université
Sherbrooke, Quebec J1K 2R1
Canada

HOME PAGE: http://sites.google.com/site/martinopelli

University of Montreal - Center for Interuniversity Research in Econometrics ( email )

C.P. 6128, Succursale Centre-ville
Montreal, Quebec H3C 3J7
Canada

Center for Interuniversity Research and Analysis on Organization (CIRANO) ( email )

2020 rue University, 25th floor
Montreal H3C 3J7, Quebec
Canada

Beyza P. Ural Marchand

University of Alberta - Faculty of Arts ( email )

Edmonton, Alberta
Canada

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