Economics at your fingertips  

Social Interaction Effects and Connection to Electricity: Experimental Evidence from Rural Ethiopia

Tanguy Bernard and Maximo Torero ()

Economic Development and Cultural Change, 2015, vol. 63, issue 3, 459 - 484

Abstract: This article assesses the importance of social interactions in determining an individual's choice to connect to an electrical grid, using an original data set on a new rural electrification program in Ethiopia. Combining global positioning system information with random allocation of discount vouchers for connection to the grid, we show that neighbors' connection behaviors have large effects on a household's connection decision. This effect is also shown to decrease by distance: no peer effect is found for neighbors living farther than 100 meters away. Evidence also suggests that expectation interactions (through social learning of the benefits of electricity) or constraint interactions (through direct externalities of one's connection on others' well-being) are unlikely to fully account for these effects and that preference interactions (through a "keeping up with neighbors" type of mechanism) appear to be a plausible explanation. We discuss implications for further research and the design of development interventions.

Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed

Downloads: (external link) (application/pdf) (text/html)
Access to the online full text or PDF requires a subscription.

Related works:
Working Paper: Social Interaction Effects and Connection to Electricity: Experimental Evidence from Rural Ethiopia (2014) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

More articles in Economic Development and Cultural Change from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().

Page updated 2020-03-31
Handle: RePEc:ucp:ecdecc:doi:10.1086/679746