Long-Term Impacts of Household Electrification in Rural India

54 Pages Posted: 20 Apr 2016

See all articles by Dominique P. van de Walle

Dominique P. van de Walle

World Bank - Development Research Group (DECRG)

Martin Ravallion

Georgetown University

Vibhuti Mendiratta

World Bank - Poverty and Equity Global Practice

Gayatri B. Koolwal

World Bank

Date Written: June 1, 2013

Abstract

India's huge expansion in rural electrification in the 1980s and 1990s offers lessons for other countries today. The paper examines the long-term effects of household electrification on consumption, labor supply, and schooling in rural India over 1982-99. It finds that household electrification brought significant gains to consumption and earnings, the latter through changes in market labor supply. It finds positive effects on schooling for girls but not for boys. External effects are also evident, whereby households without electricity benefit from village electrification. Wage rates were unaffected. Methodologically, the results suggest sizeable upward biases in past estimates of the gains from electrification associated with how past analyses dealt with geographic effects.

Keywords: Energy Production and Transportation, Engineering, Labor Policies, Economic Theory & Research, Electric Power

Suggested Citation

van de Walle, Dominique P. and Ravallion, Martin and Mendiratta, Vibhuti and Koolwal, Gayatri B., Long-Term Impacts of Household Electrification in Rural India (June 1, 2013). World Bank Policy Research Working Paper No. 6527, Available at SSRN: https://ssrn.com/abstract=2287060

Dominique P. Van de Walle (Contact Author)

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
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Washington, DC 20433
United States
202-473-7935 (Phone)
202-522-1154 (Fax)

HOME PAGE: http://econ.worldbank.org/staff/dvandewalle

Martin Ravallion

Georgetown University ( email )

Washington, DC 20057
United States

Vibhuti Mendiratta

World Bank - Poverty and Equity Global Practice ( email )

1818 H Street, NW
Washington, DC 20433
United States

Gayatri B. Koolwal

World Bank ( email )

United States

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