Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/298151 
Year of Publication: 
2023
Series/Report no.: 
ADB Economics Working Paper Series No. 705
Publisher: 
Asian Development Bank (ADB), Manila
Abstract: 
We investigate the impact of electrification on the economic, educational, and environmental outcomes of the Lao People's Democratic Republic (Lao PDR). We use household-level data and a novel identification scheme, whereby we instrument the electrification status with the proportion of grid-connected households in a community. We find evidence consistent with the so-called "peer pressure for technology adoption," as a higher proportion of electrified households is linked with a boost in the electrification of neighboring households. Additionally, we find that electrification: (i) significantly increases income (in particular, farm income); (ii) improves children's educational completion; and (iii) reduces the use of dirty fuel for lighting and cooking. From a policy perspective, public investments and financial incentives for electricity generation and distribution can play a key role in alleviating the existing economic, educational, and environmental bottlenecks of developing countries like the Lao PDR.
Subjects: 
electrification
household
fuel
income
education
Lao People's Democratic Republic
JEL: 
Q40
Q49
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

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