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Welfare impacts of rural electrification : evidence from Vietnam, Volume 1
Author:Khandker, Shahidur R.; Barnes, Douglas F.; Samad, Hussain; Minh, Nguyen Huu; Country:East Asia and Pacific; World;
Date Stored:2009/09/17Document Date:2009/09/01
Document Type:Policy Research Working PaperSubTopics:Energy Production and Transportation; Electric Power; Access to Finance; Rural Poverty Reduction; Engineering
Language:EnglishMajor 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:WPS5057Sub Sectors:Renewable energy; Power
Collection Title:Asia Sustainable and Alternative Energy Program (ASTAE)Impact Evaluation series ; no. IE 38Policy Research working paper ; no. WPS 5057TF No/Name:TF091910-MONITORING AND IMPACT EVALUATION OF RURAL ELECTRIFICATION
Volume No: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’ 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’ 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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