81520 enGender Impact: The World Bank’s Gender Impact Evaluation Database Welfare impacts of rural electrification : evidence from Vietnam Author(s) Shahidur Khandker, Douglas Barnes, Hussain Samad, Nguyen Huu Minh Contact skhandker@worldbank.org Country Vietnam Organizing Theme Economic Opportunities and Access to Assets Status The first phase of the project was complete when the study was written. Intervention Category Infrastructure Sector Sustainable Rural and Urban Development Access to electricity is key to any development initiative and there is a growing body of literature on the impact of rural electrification on development. However, most studies have so far relied on cross-sectional surveys comparing households with and without electricity, which have well known causal attribution problems. This paper is one of the first studies to examine the welfare impacts of households’ rural electrification based on panel surveys conducted in 2002 and 2005 for some 1,100 households in rural Vietnam,. The findings indicate that grid electrification has been both extensive (connecting all Abstract surveyed communes by 2005) and intensive (connecting almost 80 percent of the surveyed households by 2005). Vietnam is fairly unique in that once electricity is locally available, both rich and poor households are equally likely to get the connection. The econometric estimations suggest that grid electrification has significant positive impacts on households’ cash income, expenditure and educational outcomes. The benefits, however, reach a saturation point after prolonged exposure to electricity. Finally, this study recommends investigating long-term benefits of rural electrification – not just for households, but for rural economy as a whole. Gender Connection Gender Informed Analysis Gender Outcomes Gender disaggregated school attendance, gender disaggregated property IE Design Propensity Score Matching In 2000 the World Bank funded a rural electrification project to extend grid connection to 900 previously un-electrified communes. More than 600 communes were connected in the Intervention initial phase from 2000-2004 and the second phase that will connect the other communities began in 2005. Intervention Period 2000-2004 7 provinces were randomly selected from 6 regions in Vietnam. In each of these provinces, 6 communes were randomly selected with one commune that already had electricity, three Sample population communes that didn't have electricity but were eligible, and two non-project communes without electricity. A representative sample of 30 households was drawn from each of the 42 communes making up 1262 households. Last updated: 14 August 2013 1 enGender Impact: The World Bank’s Gender Impact Evaluation Database Comparison conditions The comparison group was slated to receive grid access in 2005 Unit of analysis Household Level Evaluation Period 2002-2005 The direct impact of rural electrification on income comes through a variety of channels, including farm and non-farm income. Rural electrification probably has its strongest impact on school attendance by children in households adopting electricity and this is true for both boys and girls, yet evidence is mixed on which gender has the stronger impact. The impacts Results are higher during first few years after a household receives electricity, and incremental benefits eventually level off after about 9 years of electricity use. During this time frame, the use of electricity and the adoption of appliances increase year after year. No significant difference between FHHH and MHHH's in terms of access to electricity. Primary study limitations There was some minor attrition from the survey. The Swedish International Development Cooperation Agency, New Zealand's Funding Source International Aid and Development Agency Khandker, S. R., Barnes, D. F., Minh, N. H., & Samad, H. (2009). Welfare impacts of rural Reference(s) electrification: evidence from Vietnam. World Bank Policy Research Working Paper No 5057 Link to Studies https://openknowledge.worldbank.org/handle/10986/4248 Microdata Last updated: 14 August 2013 2