Development Effects of Electrification: Evidence from the Topographic Placement of Hydropower Plants in Brazil-Reference-Cited by-同舟云学术

Development Effects of Electrification: Evidence from the Topographic Placement of Hydropower Plants in Brazil

Published:2013-01-01 Issue:2 Volume:5 Page:200-231
ISSN:1945-7782
Container-title:American Economic Journal: Applied Economics
language:en
Short-container-title:American Economic Journal: Applied Economics

Author:

Lipscomb Molly¹,Mobarak A. Mushfiq²,Barham Tania³

Affiliation:

1. University of Virginia, PO Box 400893, Charlottesville, VA 22904.

2. Yale University, School of Management, 135 Prospect Street, P.O. Box 208200, New Haven, CT 06520-8200.

3. University of Colorado, Boulder, 483 UCB, Boulder CO 80309.

Abstract

We estimate the development effects of electrification across Brazil over the period 1960–2000. We simulate a time series of hypothetical electricity grids for Brazil for the period 1960–2000 that show how the grid would have evolved had infrastructure investments been made based solely on geography-based cost considerations. Using the model as an instrument, we document large positive effects of electrification on development that are underestimated when one fails to account for endogenous targeting. Broad-based improvement in labor productivity across sectors and regions rather than general equilibrium re-sorting appears to be the likely mechanism by which these development gains are realized. (JEL H54, L94, O11, O13, Q41, Q43)

Publisher

American Economic Association

Subject

General Economics, Econometrics and Finance

Link

https://pubs.aeaweb.org/doi/pdf/10.1257/app.5.2.200

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