Welfare impacts of rural electrification : evidence from Vietnam, Vol. 1 of 1

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Welfare impacts of rural electrification : evidence from Vietnam

Author:	Khandker, Shahidur R.; Barnes, Douglas F.; Samad, Hussain; Minh, Nguyen Huu;	Collection Title:	Asia Sustainable and Alternative Energy Program (ASTAE)Impact Evaluation series ; no. IE 38Policy Research working paper ; no. WPS 5057
Country:	East Asia and Pacific; World;	Date Stored:	2009/09/17
Document Date:	2009/09/01	Document Type:	Policy Research Working Paper
Language:	English	Major Sector:	Energy and mining
Rel. Proj ID:	1W-Monitoring And Impact Evaluation Of Rural Electrification -- -- P111450;4E-Asia Sustainable And Alternative Energy Program (Astae) -- -- P101183;	Region:	The World Region; East Asia and Pacific
Report Number:	WPS5057	Sub Sectors:	Renewable energy; Power
SubTopics:	Energy Production and Transportation; Electric Power; Access to Finance; Rural Poverty Reduction; Engineering	TF No/Name:	TF091910-MONITORING AND IMPACT EVALUATION OF RURAL ELECTRIFICATION
Volume No:	1 of 1

Summary: Access to electricity is crucial for economic development and there is a growing body of literature on the impact of rural electrification on development. However, most studies have so far relied on cross-sectional surveys comparing households with and without electricity, which have well known causal attribution problems. This paper is one of the first studies to examine the welfare impacts of householdsﾒ rural electrification based on panel surveys conducted in 2002 and 2005 for some 1,100 households in rural Vietnam,. The findings indicate that grid electrification has been both extensive (connecting all surveyed communes by 2005) and intensive (connecting almost 80 percent of the surveyed households by 2005). Vietnam is unusual in that once electricity is locally available, both rich and poor households are equally likely to get the connection. The econometric estimations suggest that grid electrification has significant positive impacts on householdsﾒ cash income, expenditure, and educational outcomes. The benefits, however, reach a saturation point after prolonged exposure to electricity. Finally, this study recommends investigating the long-term benefits of rural electrification - not just for households, but for the rural economy as a whole.


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