Electrification and Household Welfare: Evidence from Pakistan

22 Pages Posted: 17 Sep 2018

Date Written: September 12, 2018

Abstract

As many as 50 million people in Pakistan may still live without connection to the electric grid. Pakistan also has some of the world's worst power outages. Using data from a nationally representative two-period panel survey, this paper presents the first empirical evidence on the cost of unreliable electricity supply to households in Pakistan. The results show that lack of connectivity and poor reliability may be costing the country at least $4.5 billion (1.7 percent of gross domestic product) a year. Addressing the problem requires energy sector reforms to correct regulatory and institutional distortions in the gas and electricity sectors.

Keywords: Energy Policies & Economics, Electric Power, Energy Demand, Energy and Mining, Energy and Environment, Educational Sciences, Health Care Services Industry

Suggested Citation

Samad, Hussain A. and Zhang, Fan, Electrification and Household Welfare: Evidence from Pakistan (September 12, 2018). World Bank Policy Research Working Paper No. 8582. Available at SSRN: https://ssrn.com/abstract=3248804

Hussain A. Samad (Contact Author)

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Fan Zhang

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

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