2016
DOI: 10.1016/j.eneco.2016.06.008
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Household-level effects of electricity on income

Abstract: This paper studies the effect of electricity on income, using the Nepal Living Standards Survey-III (NLSSIII), carried out in the years 2010-11. To account for endogeneity issues, we use Three Stage Least Squares (3SLS), and Two Stage Probit Least Squares (2SPLS) models. We find that causality runs both ways. That is, income explains whether a household is connected to electricity, but also, a household being connected to electricity has a very large and significant effect on income. A household being connecte… Show more

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Cited by 57 publications
(26 citation statements)
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References 26 publications
(18 reference statements)
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“…The poverty alleviation effect of PV policies in eastern regions is slightly greater than in western regions, and poor counties appear to benefit more from PV poverty alleviation policies than wealthy counties. The sunlight exposure time is positively correlated with the annual rural per capita disposable income, consistent with the Bridge et al 33 , which measure the natural conditions and income with annual global solar radiation and consumption per capita, respectively.…”
Section: Discussionsupporting
confidence: 84%
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“…The poverty alleviation effect of PV policies in eastern regions is slightly greater than in western regions, and poor counties appear to benefit more from PV poverty alleviation policies than wealthy counties. The sunlight exposure time is positively correlated with the annual rural per capita disposable income, consistent with the Bridge et al 33 , which measure the natural conditions and income with annual global solar radiation and consumption per capita, respectively.…”
Section: Discussionsupporting
confidence: 84%
“…Both sunlight exposure and average solar radiation are the indicators measuring the abundance of natural conditions. Although the average solar radiation is recognized as one of the determinants for the PV productivity, which has been used by Bridge et al 33 , this indicator is unobservable directly and can only be obtained by conversing from the sunlight exposure time. The conversion is complicated that should incorporate a number of meteorological parameters such as cloud and precipitation, etc.…”
Section: Methodsmentioning
confidence: 99%
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“…For instance, the shares of direct HCEs from electricity in Beijing were 71.3% and 58.2% in 2007 for urban and rural household, respectively, and increased to 73.7% and 62.3% in 2012, respectively. An increased level of income or consumption increased the probability of the use of electricity [76,77]. Thus, the result reflects the improvement of the income and living standard of urban and rural household and the widespread use of household electrical appliances with the rapid development of economy.…”
Section: Discussionmentioning
confidence: 87%
“…Access to energy is one cause of duality in developed and developing countries [37,38]. No country has been able to raise per capita incomes without increasing the use of commercial energy [39,40].…”
Section: Assessing Energy Poverty and Its Implicationmentioning
confidence: 99%