Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
10437675 | Journal of Economic Behavior & Organization | 2014 | 20 Pages |
Abstract
This paper estimates the returns to household income due to improved access to electricity in rural India. We examine the effect of connecting a household to the grid and of the quality of electricity, defined as hours of daily supply. The analysis is based on two rounds of a representative panel of more than 10,000 households. We use the district-level density of transmission cables as instrument for the electrification status of the household. We find that a grid connection increases non-agricultural incomes of rural households by about 9% during the study period (1994-2005). However, a grid connection and a higher quality of electricity (in terms of fewer outages and more hours per day) increases non-agricultural incomes by about 28.6% in the same period.
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Authors
Ujjayant Chakravorty, Martino Pelli, Beyza Ural Marchand,