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Demand for Electricity on the Global Electrification Frontier

Author

Listed:
  • Burgess, Robin

    (Dept of Economics, LSE)

  • Greenstone, Michael

    (Dept of Economics, University of Chicago)

  • Ryan, Nicholas

    (Dept of Economics, Yale University)

  • Sudarshan, Anant

    (Department of Economics, University of Warwick)

Abstract
Falling off-grid solar prices and an expanding grid are revolutionizing choices for nearly a billion people without electricity. Using experimental price variation, we estimate demand for all electricity sources in Bihar, India, during a four-year period when electrification leapt from 27% to 64%. We find that: (i) household surplus from electrification increased five-fold; (ii) both solar and the grid boost electrification but households gain more surplus from the grid; (iii) grid investments and subsidies strongly reduce demand for off-grid solar. When we extend the model to eight African countries where grid infrastructure is weaker and subsidies lower we find that off-grid solar often provides higher surplus than the grid. JEL Codes: O13 ; Q41 ; Q21 ; C93

Suggested Citation

  • Burgess, Robin & Greenstone, Michael & Ryan, Nicholas & Sudarshan, Anant, 2023. "Demand for Electricity on the Global Electrification Frontier," The Warwick Economics Research Paper Series (TWERPS) 1445, University of Warwick, Department of Economics.
    • Handle: RePEc:wrk:warwec:1445
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    References listed on IDEAS

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    Cited by:

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    3. Jamil, Faisal & Islam, Tanweer Ul, 2023. "Outage-induced power backup choice in Pakistan," Utilities Policy, Elsevier, vol. 82(C).
    4. Fazlur Rashid & Md. Emdadul Hoque & Muhammad Aziz & Talukdar Nazmus Sakib & Md. Tariqul Islam & Raihan Moker Robin, 2021. "Investigation of Optimal Hybrid Energy Systems Using Available Energy Sources in a Rural Area of Bangladesh," Energies, MDPI, vol. 14(18), pages 1-24, September.

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    More about this item

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

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