Household-level Effects of Electricity on Income

Authors

Brandon Bridge, University of New MexicoFollow
Dadhi Adhikari, The University of New MexicoFollow
Matías Fontenla

Document Type

Working Paper

Publication Date

2013

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 Three Stage Least Squares (3SLS), and Two Stage Probit Least Squares (2SPLS) models. 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. A household being connected to electricity increases consumption per capita by 18% on average.

Language

English

Recommended Citation

Bridge, Brandon; Dadhi Adhikari; and Matías Fontenla. "Household-level Effects of Electricity on Income." (2013). https://digitalrepository.unm.edu/nsc_research/65