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Long-term Gains from Electrification in Rural India

Author

Listed:
  • Dominique van de Walle
  • Martin Ravallion
  • Vibhuti Mendiratta
  • Gayatri Koolwal

Abstract

We know surprisingly little about the long-run impacts of household electrification. This paper studies the impacts on consumption in rural India over a 17-year period, allowing for both internal and external (village-level) effects. Under our identifying assumptions, electrification brought significant consumption gains for households who acquired electricity for their own use. We also find evidence of a dynamic effect of village connectivity for households without electricity themselves. This is suggestive of an external effect, which also comes with a shift in consumption spending suggestive of status concerns among those still without electricity. Labor earnings were an important channel of impact. This was mainly through extra work by men. There was no effect on average wage rates.

Suggested Citation

  • Dominique van de Walle & Martin Ravallion & Vibhuti Mendiratta & Gayatri Koolwal, 2017. "Long-term Gains from Electrification in Rural India," The World Bank Economic Review, World Bank, vol. 31(2), pages 385-411.
    • Handle: RePEc:oup:wbecrv:v:31:y:2017:i:2:p:385-411.
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    More about this item

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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