Experimental Evidence on the Economics of Rural Electrification

S-Tier
Journal: Journal of Political Economy
Year: 2020
Volume: 128
Issue: 4
Pages: 1523 - 1565

Authors (3)

Kenneth Lee (not in RePEc) Edward Miguel (University of California-Berke...) Catherine Wolfram (not in RePEc)

Score contribution per author:

2.681 = (α=2.01 / 3 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We present results from an experiment that randomized the expansion of electric grid infrastructure in rural Kenya. Electricity distribution is a canonical example of a natural monopoly. Experimental variation in the number of connections, combined with administrative cost data, reveals considerable scale economies, as hypothesized. Randomized price offers indicate that demand for connections falls sharply with price. Among newly connected households, average electricity consumption is very low, implying low consumer surplus. We do not find meaningful medium-run impacts on economic and noneconomic outcomes. We discuss implications for current efforts to increase rural electrification in Kenya and highlight how various factors may affect interpretation.

Technical Details

RePEc Handle
repec:ucp:jpolec:doi:10.1086/705417
Journal Field
General
Author Count
3
Added to Database
2026-01-26