Rural electric cooperatives and economic development

Using electric cooperative service area data at the zip code level, we estimate the county-level share of electricity produced by locally owned electric cooperatives. We then estimate the impact of this share on county level 2010-14 growth while controlling for rurality and other factors. We find that electric cooperative share is positively related to county level wage growth in rural areas. The estimated parameter is small but positive and statistically significant. The results imply that rural electric cooperatives deliver benefits beyond service provision.