Electricity Access and Structural Transformation : Evidence from Brazil's Electrification

Electricity Access and Structural Transformation : Evidence from Brazil's Electrification

This study proposes a novel supply-side mechanism driving economic structural transformation: grid electrification. Increasing electricity availability affects the reallocation of inputs to more productive activities through generating higher retur...

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Bibliographic Details
Main Authors: Perez-Sebastian, Fidel, Steinbuks, Jevgenijs, Feres, Jose, Trotter, Ian
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2020
Subjects:
ELECTRICITY ACCESS
STRUCTURAL TRANSFORMATION
FIRM SIZE
ELECTRICITY GRID
Online Access:http://documents.worldbank.org/curated/en/728811584105259025/Electricity-Access-and-Structural-Transformation-Evidence-from-Brazils-Electrification
http://hdl.handle.net/10986/33442
id okr-10986-33442
recordtype oai_dc
spelling okr-10986-334422022-09-20T00:13:08Z Electricity Access and Structural Transformation : Evidence from Brazil's Electrification Perez-Sebastian, Fidel Steinbuks, Jevgenijs Feres, Jose Trotter, Ian ELECTRICITY ACCESS STRUCTURAL TRANSFORMATION FIRM SIZE ELECTRICITY GRID This study proposes a novel supply-side mechanism driving economic structural transformation: grid electrification. Increasing electricity availability affects the reallocation of inputs to more productive activities through generating higher returns and lowering entry costs in sectors with greater infrastructure intensity. The results of modeling and econometric analysis based on Brazil's historical data over the period 1970-2006 confirm that the manufacturing sector benefits the most in these two dimensions, followed by services and agriculture. The expansion of electricity infrastructure explains about 17 percent of this process and 32 percent of the observed increase in GDP per capita. Simulations of a multisector neoclassical growth model with heterogeneous firms help assessing the effectiveness of different electrification policies. 2020-03-19T17:24:39Z 2020-03-19T17:24:39Z 2020-03 Working Paper http://documents.worldbank.org/curated/en/728811584105259025/Electricity-Access-and-Structural-Transformation-Evidence-from-Brazils-Electrification http://hdl.handle.net/10986/33442 English Policy Research Working Paper;No. 9182 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Latin America & Caribbean Brazil
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ELECTRICITY ACCESS
STRUCTURAL TRANSFORMATION
FIRM SIZE
ELECTRICITY GRID
spellingShingle ELECTRICITY ACCESS
STRUCTURAL TRANSFORMATION
FIRM SIZE
ELECTRICITY GRID
Perez-Sebastian, Fidel
Steinbuks, Jevgenijs
Feres, Jose
Trotter, Ian
Electricity Access and Structural Transformation : Evidence from Brazil's Electrification
geographic_facet Latin America & Caribbean
Brazil
relation Policy Research Working Paper;No. 9182
description This study proposes a novel supply-side mechanism driving economic structural transformation: grid electrification. Increasing electricity availability affects the reallocation of inputs to more productive activities through generating higher returns and lowering entry costs in sectors with greater infrastructure intensity. The results of modeling and econometric analysis based on Brazil's historical data over the period 1970-2006 confirm that the manufacturing sector benefits the most in these two dimensions, followed by services and agriculture. The expansion of electricity infrastructure explains about 17 percent of this process and 32 percent of the observed increase in GDP per capita. Simulations of a multisector neoclassical growth model with heterogeneous firms help assessing the effectiveness of different electrification policies.
format Working Paper
author Perez-Sebastian, Fidel
Steinbuks, Jevgenijs
Feres, Jose
Trotter, Ian
author_facet Perez-Sebastian, Fidel
Steinbuks, Jevgenijs
Feres, Jose
Trotter, Ian
author_sort Perez-Sebastian, Fidel
title Electricity Access and Structural Transformation : Evidence from Brazil's Electrification
title_short Electricity Access and Structural Transformation : Evidence from Brazil's Electrification
title_full Electricity Access and Structural Transformation : Evidence from Brazil's Electrification
title_fullStr Electricity Access and Structural Transformation : Evidence from Brazil's Electrification
title_full_unstemmed Electricity Access and Structural Transformation : Evidence from Brazil's Electrification
title_sort electricity access and structural transformation : evidence from brazil's electrification
publisher World Bank, Washington, DC
publishDate 2020
url http://documents.worldbank.org/curated/en/728811584105259025/Electricity-Access-and-Structural-Transformation-Evidence-from-Brazils-Electrification
http://hdl.handle.net/10986/33442
_version_ 1764478772725153792

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