Electricity Access and Structural Transformation: Evidence from Brazil's Electrification
Fidel Perez Sebastian (),
Jose Gustavo Feres and
Ian Michael Trotter
No 9182, Policy Research Working Paper Series from The World Bank
This study proposes a novel supply-side mechanism driving economic structural transformation: grid electrification. Increasing electricity availability affects the reallocation of inputs to more productive activities through generating higher returns and lowering entry costs in sectors with greater infrastructure intensity. The results of modeling and econometric analysis based on Brazil's historical data over the period 1970-2006 confirm that the manufacturing sector benefits the most in these two dimensions, followed by services and agriculture. The expansion of electricity infrastructure explains about 17 percent of this process and 32 percent of the observed increase in GDP per capita. Simulations of a multisector neoclassical growth model with heterogeneous firms help assessing the effectiveness of different electrification policies.
Keywords: Energy Policies&Economics; Textiles; Apparel&Leather Industry; Pulp&Paper Industry; Food&Beverage Industry; Common Carriers Industry; Construction Industry; Business Cycles and Stabilization Policies; General Manufacturing; Plastics&Rubber Industry; Food Security; Electric Power; Economic Theory&Research; Industrial Economics; Economic Growth (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ene, nep-his and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://documents.worldbank.org/curated/en/72881158 ... -Electrification.pdf (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:9182
Access Statistics for this paper
More papers in Policy Research Working Paper Series from The World Bank 1818 H Street, N.W., Washington, DC 20433. Contact information at EDIRC.
Bibliographic data for series maintained by Roula I. Yazigi ().