Electrification to Grow Manufacturing? Evidence from Nepal

66 Pages Posted: 19 Mar 2021

See all articles by Robyn Meeks

Robyn Meeks

University of Michigan at Ann Arbor

Hope F. Thompson

affiliation not provided to SSRN

Zhenxuan Wang

Duke University

Date Written: March 18, 2021

Abstract

Almost half of firms in South Asia identify electricity as a major constraint to operations. We investigate whether electrification in Nepal – via microhydro mini-grids – helped grow the manufacturing sector. Electrification led to a substantial and statistically significant increase in formal manufacturing establishments; yet the overall presence remains limited due to low baseline numbers. Labor shifts from self-employment and agriculture to employment for salary and wages. Increases in informal, nonagricultural household enterprises also contribute to labor changes. In more remote locations – farther from the historical electrical grid – the impacts of microhydro on manufacturing establishments are significantly muted.

Keywords: electricity, manufacturing, employment, renewable energy

Suggested Citation

Meeks, Robyn and Thompson, Hope F. and Wang, Zhenxuan, Electrification to Grow Manufacturing? Evidence from Nepal (March 18, 2021). Duke Global Working Paper Series No. 36, Available at SSRN: https://ssrn.com/abstract=3807316 or http://dx.doi.org/10.2139/ssrn.3807316

Robyn Meeks (Contact Author)

University of Michigan at Ann Arbor ( email )

500 S. State Street
Ann Arbor, MI 48109
United States

Hope F. Thompson

affiliation not provided to SSRN ( email )

No Address Available

Zhenxuan Wang

Duke University ( email )

Durham, NC
United States

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