The Welfare Impact of Rural Electrification : A Reassessment of the Costs and Benefits
It has long been claimed that rural electrification greatly improves the quality of life. Lighting alone brings benefits such as increased study time and improved study environment for school children, extended hours for small businesses, and great...
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Washington, DC : World Bank
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2008/05/9850725/welfare-impact-rural-electrification-reassessment-costs-benefits-ieg-impact-evaluation http://hdl.handle.net/10986/6519 |
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okr-10986-6519 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
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English en_US |
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ABSENCE OF CREDIT ACCESS TO ELECTRICITY ACCESS TO ENERGY ACCESS TO MODERN ENERGY AFFORDABILITY AGRICULTURAL RESEARCH ALLOCATION OF FUNDS APPROACH AVAILABILITY BALANCE BANK CONDITIONALITY BANK FINANCING BANK LENDING BANK LOANS BASIC NEED BIOMASS BIOMASS ENERGY CAPACITY BUILDING CAPITAL COST CARBON DIOXIDE CARBON DIOXIDE EMISSIONS CITIES CLEAN WATER CLINICS COMMUNES COMMUNITIES COMMUNITY DEMAND COMMUNITY FACILITIES CONSUMER EDUCATION COOPERATIVES COST DIFFERENTIALS COST-EFFECTIVENESS COUNTERFACTUAL CREDIT MARKETS CROSS-SUBSIDIES DEBT DEBT RELIEF DEMAND CURVE DEVELOPMENT ASSISTANCE DIESEL DIESEL GENERATORS DISTRIBUTION OF BENEFITS DISTRIBUTION OF ELECTRICITY ECONOMIC CRITERIA ECONOMIC EFFICIENCY ECONOMIES IN TRANSITION EDUCATIONAL CAMPAIGNS EFFICIENT ENERGY USE ELECTRICITY ELECTRICITY CONSUMPTION ELECTRICITY SERVICES ELECTRICITY SUPPLY ELECTRICITY TARIFF ELECTRICITY UTILITIES ELIGIBILITY CRITERIA EMPLOYMENT ENERGY DEVELOPMENT ENERGY EFFICIENCY ENERGY SOURCES ENERGY STRATEGY ENERGY SUPPLY ENVIRONMENTAL ISSUES ENVIRONMENTAL PROTECTION EXPENDITURE EXPENDITURES EXPLOITATION FAMILIES FEMALE FINANCES FINANCIAL BURDEN FINANCIAL HEALTH FINANCIAL MANAGEMENT FINANCIAL PERFORMANCE FINANCIAL REFORMS FINANCIAL SECTOR ASSESSMENT FINANCIAL SECTOR REFORM FINANCIAL SUSTAINABILITY FINANCIAL VIABILITY FIRST LOAN FIRST LOANS FUEL FUEL SWITCHING FUELS GENDER GENDER ASPECT GENDER DIMENSIONS GENDER ISSUES GENDER POLICY GEOTHERMAL DEVELOPMENT GRID CONNECTION GRID CONNECTIONS GRID ELECTRICITY GRID ELECTRIFICATION GRID EXPANSION GRID EXTENSION GRID INTEGRATION GRID SYSTEMS HANDICRAFTS HOUSEHOLD INCOME HOUSEHOLDS HOUSES HYDRO POWER HYDROELECTRIC PLANT HYDROELECTRIC POWER HYDROPOWER ILLEGAL CONNECTIONS INSTITUTIONAL DEVELOPMENT INTERNATIONAL BANK INTERNATIONAL FINANCE INTERVENTIONS IRRIGATION KEROSENE LATIN AMERICAN LENDER LINES OF CREDIT LOAN NEW COMMUNITIES NUTRITION NUTRITION OUTCOMES PEAK DEMAND PHOTOVOLTAIC ENERGY PHOTOVOLTAIC] SYSTEMS PILOT PROJECTS PLANTATIONS POOR POOR COMMUNITIES POOR HOUSEHOLDS POOR PEOPLE POVERTY FOCUS POVERTY IMPACT POVERTY INCIDENCE POVERTY LINE POVERTY REDUCTION POVERTY REDUCTION STRATEGY POWER POWER DISTRIBUTION POWER GENERATION POWER PROJECT POWER SECTOR POWER STATION PRICE OF ELECTRICITY PRICE OF OIL RATES OF RETURN REMOTE AREAS REMOTE COMMUNITIES REMOTE LOCATIONS RENEWABLE ENERGY RENEWABLE ENERGY TECHNOLOGIES REPAYMENT REPAYMENT PERIODS RESETTLEMENT RURAL RURAL AREAS RURAL COMMUNITIES RURAL DEVELOPMENT RURAL ELECTRIFICATION RURAL ENERGY RURAL HOUSEHOLDS RURAL INCOME RURAL INCOME GENERATION RURAL INCOMES RURAL INFRASTRUCTURE RURAL INFRASTRUCTURE PROJECT RURAL POOR RURAL POVERTY RURAL POVERTY ALLEVIATION RURAL POWER RURAL TRANSFORMATION RURAL VILLAGES SHOPS SMALL BUSINESSES SMALL TOWNS SOCIAL DEVELOPMENT SOCIAL FUNDS SOCIAL IMPACTS SOCIAL WELFARE SOLAR ENERGY SOLAR HOME SYSTEM SOLAR HOME SYSTEMS SOLAR PANELS SOLAR POWER SUB-SAHARAN AFRICA SUBSIDIARY SUBSIDIZATION SUPPLY COSTS SUPPLY OF ELECTRICITY TARGETING TARIFF LEVELS TARIFF STRUCTURES TECHNICAL ASSISTANCE THERMAL POWER TOWNS TRANSMISSION GRID TRANSMISSION LINE TRANSMISSION LINE LOSSES TRANSPORT URBAN AREAS UTILITY COMPANY VILLAGE VILLAGES VOLTAGE WAR WIND WIND POWER WOMAN |
| spellingShingle |
ABSENCE OF CREDIT ACCESS TO ELECTRICITY ACCESS TO ENERGY ACCESS TO MODERN ENERGY AFFORDABILITY AGRICULTURAL RESEARCH ALLOCATION OF FUNDS APPROACH AVAILABILITY BALANCE BANK CONDITIONALITY BANK FINANCING BANK LENDING BANK LOANS BASIC NEED BIOMASS BIOMASS ENERGY CAPACITY BUILDING CAPITAL COST CARBON DIOXIDE CARBON DIOXIDE EMISSIONS CITIES CLEAN WATER CLINICS COMMUNES COMMUNITIES COMMUNITY DEMAND COMMUNITY FACILITIES CONSUMER EDUCATION COOPERATIVES COST DIFFERENTIALS COST-EFFECTIVENESS COUNTERFACTUAL CREDIT MARKETS CROSS-SUBSIDIES DEBT DEBT RELIEF DEMAND CURVE DEVELOPMENT ASSISTANCE DIESEL DIESEL GENERATORS DISTRIBUTION OF BENEFITS DISTRIBUTION OF ELECTRICITY ECONOMIC CRITERIA ECONOMIC EFFICIENCY ECONOMIES IN TRANSITION EDUCATIONAL CAMPAIGNS EFFICIENT ENERGY USE ELECTRICITY ELECTRICITY CONSUMPTION ELECTRICITY SERVICES ELECTRICITY SUPPLY ELECTRICITY TARIFF ELECTRICITY UTILITIES ELIGIBILITY CRITERIA EMPLOYMENT ENERGY DEVELOPMENT ENERGY EFFICIENCY ENERGY SOURCES ENERGY STRATEGY ENERGY SUPPLY ENVIRONMENTAL ISSUES ENVIRONMENTAL PROTECTION EXPENDITURE EXPENDITURES EXPLOITATION FAMILIES FEMALE FINANCES FINANCIAL BURDEN FINANCIAL HEALTH FINANCIAL MANAGEMENT FINANCIAL PERFORMANCE FINANCIAL REFORMS FINANCIAL SECTOR ASSESSMENT FINANCIAL SECTOR REFORM FINANCIAL SUSTAINABILITY FINANCIAL VIABILITY FIRST LOAN FIRST LOANS FUEL FUEL SWITCHING FUELS GENDER GENDER ASPECT GENDER DIMENSIONS GENDER ISSUES GENDER POLICY GEOTHERMAL DEVELOPMENT GRID CONNECTION GRID CONNECTIONS GRID ELECTRICITY GRID ELECTRIFICATION GRID EXPANSION GRID EXTENSION GRID INTEGRATION GRID SYSTEMS HANDICRAFTS HOUSEHOLD INCOME HOUSEHOLDS HOUSES HYDRO POWER HYDROELECTRIC PLANT HYDROELECTRIC POWER HYDROPOWER ILLEGAL CONNECTIONS INSTITUTIONAL DEVELOPMENT INTERNATIONAL BANK INTERNATIONAL FINANCE INTERVENTIONS IRRIGATION KEROSENE LATIN AMERICAN LENDER LINES OF CREDIT LOAN NEW COMMUNITIES NUTRITION NUTRITION OUTCOMES PEAK DEMAND PHOTOVOLTAIC ENERGY PHOTOVOLTAIC] SYSTEMS PILOT PROJECTS PLANTATIONS POOR POOR COMMUNITIES POOR HOUSEHOLDS POOR PEOPLE POVERTY FOCUS POVERTY IMPACT POVERTY INCIDENCE POVERTY LINE POVERTY REDUCTION POVERTY REDUCTION STRATEGY POWER POWER DISTRIBUTION POWER GENERATION POWER PROJECT POWER SECTOR POWER STATION PRICE OF ELECTRICITY PRICE OF OIL RATES OF RETURN REMOTE AREAS REMOTE COMMUNITIES REMOTE LOCATIONS RENEWABLE ENERGY RENEWABLE ENERGY TECHNOLOGIES REPAYMENT REPAYMENT PERIODS RESETTLEMENT RURAL RURAL AREAS RURAL COMMUNITIES RURAL DEVELOPMENT RURAL ELECTRIFICATION RURAL ENERGY RURAL HOUSEHOLDS RURAL INCOME RURAL INCOME GENERATION RURAL INCOMES RURAL INFRASTRUCTURE RURAL INFRASTRUCTURE PROJECT RURAL POOR RURAL POVERTY RURAL POVERTY ALLEVIATION RURAL POWER RURAL TRANSFORMATION RURAL VILLAGES SHOPS SMALL BUSINESSES SMALL TOWNS SOCIAL DEVELOPMENT SOCIAL FUNDS SOCIAL IMPACTS SOCIAL WELFARE SOLAR ENERGY SOLAR HOME SYSTEM SOLAR HOME SYSTEMS SOLAR PANELS SOLAR POWER SUB-SAHARAN AFRICA SUBSIDIARY SUBSIDIZATION SUPPLY COSTS SUPPLY OF ELECTRICITY TARGETING TARIFF LEVELS TARIFF STRUCTURES TECHNICAL ASSISTANCE THERMAL POWER TOWNS TRANSMISSION GRID TRANSMISSION LINE TRANSMISSION LINE LOSSES TRANSPORT URBAN AREAS UTILITY COMPANY VILLAGE VILLAGES VOLTAGE WAR WIND WIND POWER WOMAN Independent Evaluation Group The Welfare Impact of Rural Electrification : A Reassessment of the Costs and Benefits |
| description |
It has long been claimed that rural
electrification greatly improves the quality of life.
Lighting alone brings benefits such as increased study time
and improved study environment for school children, extended
hours for small businesses, and greater security. But
electrification brings more than light. It's second
most common use is for television, which brings both
entertainment and information. The people who live in rural
areas greatly appreciate these benefits and are willing to
pay for them at levels more than sufficient to cover the
costs. However, the evaluation of these and other benefits,
as well as of their distribution, has been sparse. This
report reviews recent methodological advances made in
measuring the benefits of rural electrification (RE) and
commends them. It also notes that the understanding of the
techniques shown in project documents is sometimes weak, and
quality control for the economic analysis in project
documents lacking. This study shows that willingness to pay
for electricity is high, exceeding the long-run marginal
cost of supply. Hence, in principle, RE investments can have
good rates of return and be financially sustainable. But
caveats are in order. The first caveat is that attention
needs to be paid to ensuring least cost supply, including
limiting system losses. Second, continued attention needs to
be paid to achieving the right balance between financial
sustainability and reaching the poor. |
| format |
Publications & Research :: Publication |
| author |
Independent Evaluation Group |
| author_facet |
Independent Evaluation Group |
| author_sort |
Independent Evaluation Group |
| title |
The Welfare Impact of Rural Electrification : A Reassessment of the Costs and Benefits |
| title_short |
The Welfare Impact of Rural Electrification : A Reassessment of the Costs and Benefits |
| title_full |
The Welfare Impact of Rural Electrification : A Reassessment of the Costs and Benefits |
| title_fullStr |
The Welfare Impact of Rural Electrification : A Reassessment of the Costs and Benefits |
| title_full_unstemmed |
The Welfare Impact of Rural Electrification : A Reassessment of the Costs and Benefits |
| title_sort |
welfare impact of rural electrification : a reassessment of the costs and benefits |
| publisher |
Washington, DC : World Bank |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2008/05/9850725/welfare-impact-rural-electrification-reassessment-costs-benefits-ieg-impact-evaluation http://hdl.handle.net/10986/6519 |
| _version_ |
1764397957027725312 |
| spelling |
okr-10986-65192021-04-23T14:02:25Z The Welfare Impact of Rural Electrification : A Reassessment of the Costs and Benefits Independent Evaluation Group ABSENCE OF CREDIT ACCESS TO ELECTRICITY ACCESS TO ENERGY ACCESS TO MODERN ENERGY AFFORDABILITY AGRICULTURAL RESEARCH ALLOCATION OF FUNDS APPROACH AVAILABILITY BALANCE BANK CONDITIONALITY BANK FINANCING BANK LENDING BANK LOANS BASIC NEED BIOMASS BIOMASS ENERGY CAPACITY BUILDING CAPITAL COST CARBON DIOXIDE CARBON DIOXIDE EMISSIONS CITIES CLEAN WATER CLINICS COMMUNES COMMUNITIES COMMUNITY DEMAND COMMUNITY FACILITIES CONSUMER EDUCATION COOPERATIVES COST DIFFERENTIALS COST-EFFECTIVENESS COUNTERFACTUAL CREDIT MARKETS CROSS-SUBSIDIES DEBT DEBT RELIEF DEMAND CURVE DEVELOPMENT ASSISTANCE DIESEL DIESEL GENERATORS DISTRIBUTION OF BENEFITS DISTRIBUTION OF ELECTRICITY ECONOMIC CRITERIA ECONOMIC EFFICIENCY ECONOMIES IN TRANSITION EDUCATIONAL CAMPAIGNS EFFICIENT ENERGY USE ELECTRICITY ELECTRICITY CONSUMPTION ELECTRICITY SERVICES ELECTRICITY SUPPLY ELECTRICITY TARIFF ELECTRICITY UTILITIES ELIGIBILITY CRITERIA EMPLOYMENT ENERGY DEVELOPMENT ENERGY EFFICIENCY ENERGY SOURCES ENERGY STRATEGY ENERGY SUPPLY ENVIRONMENTAL ISSUES ENVIRONMENTAL PROTECTION EXPENDITURE EXPENDITURES EXPLOITATION FAMILIES FEMALE FINANCES FINANCIAL BURDEN FINANCIAL HEALTH FINANCIAL MANAGEMENT FINANCIAL PERFORMANCE FINANCIAL REFORMS FINANCIAL SECTOR ASSESSMENT FINANCIAL SECTOR REFORM FINANCIAL SUSTAINABILITY FINANCIAL VIABILITY FIRST LOAN FIRST LOANS FUEL FUEL SWITCHING FUELS GENDER GENDER ASPECT GENDER DIMENSIONS GENDER ISSUES GENDER POLICY GEOTHERMAL DEVELOPMENT GRID CONNECTION GRID CONNECTIONS GRID ELECTRICITY GRID ELECTRIFICATION GRID EXPANSION GRID EXTENSION GRID INTEGRATION GRID SYSTEMS HANDICRAFTS HOUSEHOLD INCOME HOUSEHOLDS HOUSES HYDRO POWER HYDROELECTRIC PLANT HYDROELECTRIC POWER HYDROPOWER ILLEGAL CONNECTIONS INSTITUTIONAL DEVELOPMENT INTERNATIONAL BANK INTERNATIONAL FINANCE INTERVENTIONS IRRIGATION KEROSENE LATIN AMERICAN LENDER LINES OF CREDIT LOAN NEW COMMUNITIES NUTRITION NUTRITION OUTCOMES PEAK DEMAND PHOTOVOLTAIC ENERGY PHOTOVOLTAIC] SYSTEMS PILOT PROJECTS PLANTATIONS POOR POOR COMMUNITIES POOR HOUSEHOLDS POOR PEOPLE POVERTY FOCUS POVERTY IMPACT POVERTY INCIDENCE POVERTY LINE POVERTY REDUCTION POVERTY REDUCTION STRATEGY POWER POWER DISTRIBUTION POWER GENERATION POWER PROJECT POWER SECTOR POWER STATION PRICE OF ELECTRICITY PRICE OF OIL RATES OF RETURN REMOTE AREAS REMOTE COMMUNITIES REMOTE LOCATIONS RENEWABLE ENERGY RENEWABLE ENERGY TECHNOLOGIES REPAYMENT REPAYMENT PERIODS RESETTLEMENT RURAL RURAL AREAS RURAL COMMUNITIES RURAL DEVELOPMENT RURAL ELECTRIFICATION RURAL ENERGY RURAL HOUSEHOLDS RURAL INCOME RURAL INCOME GENERATION RURAL INCOMES RURAL INFRASTRUCTURE RURAL INFRASTRUCTURE PROJECT RURAL POOR RURAL POVERTY RURAL POVERTY ALLEVIATION RURAL POWER RURAL TRANSFORMATION RURAL VILLAGES SHOPS SMALL BUSINESSES SMALL TOWNS SOCIAL DEVELOPMENT SOCIAL FUNDS SOCIAL IMPACTS SOCIAL WELFARE SOLAR ENERGY SOLAR HOME SYSTEM SOLAR HOME SYSTEMS SOLAR PANELS SOLAR POWER SUB-SAHARAN AFRICA SUBSIDIARY SUBSIDIZATION SUPPLY COSTS SUPPLY OF ELECTRICITY TARGETING TARIFF LEVELS TARIFF STRUCTURES TECHNICAL ASSISTANCE THERMAL POWER TOWNS TRANSMISSION GRID TRANSMISSION LINE TRANSMISSION LINE LOSSES TRANSPORT URBAN AREAS UTILITY COMPANY VILLAGE VILLAGES VOLTAGE WAR WIND WIND POWER WOMAN It has long been claimed that rural electrification greatly improves the quality of life. Lighting alone brings benefits such as increased study time and improved study environment for school children, extended hours for small businesses, and greater security. But electrification brings more than light. It's second most common use is for television, which brings both entertainment and information. The people who live in rural areas greatly appreciate these benefits and are willing to pay for them at levels more than sufficient to cover the costs. However, the evaluation of these and other benefits, as well as of their distribution, has been sparse. This report reviews recent methodological advances made in measuring the benefits of rural electrification (RE) and commends them. It also notes that the understanding of the techniques shown in project documents is sometimes weak, and quality control for the economic analysis in project documents lacking. This study shows that willingness to pay for electricity is high, exceeding the long-run marginal cost of supply. Hence, in principle, RE investments can have good rates of return and be financially sustainable. But caveats are in order. The first caveat is that attention needs to be paid to ensuring least cost supply, including limiting system losses. Second, continued attention needs to be paid to achieving the right balance between financial sustainability and reaching the poor. 2012-05-29T14:17:00Z 2012-05-29T14:17:00Z 2008 http://documents.worldbank.org/curated/en/2008/05/9850725/welfare-impact-rural-electrification-reassessment-costs-benefits-ieg-impact-evaluation 978-0-8213-7367-5 http://hdl.handle.net/10986/6519 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC : World Bank Publications & Research :: Publication Publications & Research :: Publication |