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Household-level effects of electricity on income

Brandon A. Bridge, Dadhi Adhikari and Matías Fontenla ()

Energy Economics, 2016, vol. 58, issue C, 222-228

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 a Two Stage Probit Least Squares (2SPLS) model. 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.

Keywords: Energy; Electricity; Income; Economic development; Nepal (search for similar items in EconPapers)
JEL-codes: O1 Q4 (search for similar items in EconPapers)
Date: 2016
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DOI: 10.1016/j.eneco.2016.06.008

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