Grid Extension in Rural Benin: Micro-Manufacturers and the Electrification Trap

Jörg Peters, Colin Vance and Marek Harsdorff

World Development, 2011, vol. 39, issue 5, 773-783

Abstract: Summary Productive electricity use is widely believed to contribute to positive impacts of electrification projects. This paper investigates these impacts by comparing the performance of micro manufacturing enterprises in grid-covered and non-covered villages in Northern Benin. Using firm-level data, the analysis employs Propensity Score Matching techniques to measure differences in profits according to a grid-connection. Although beneficial impacts are found from firm creation following electrification, firms that existed before electrification perform no better than their matched counterparts from a non-electrified region. Complementary measures that sensitize firms about the implications of a grid connection are recommended as important features of program design.

Keywords: impact; evaluation; propensity; score; matching; productive; electricity; use; Benin; Africa (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (52)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:39:y:2011:i:5:p:773-783

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