Grid Extension in Rural Benin: Micro-Manufacturers and the Electrification Trap

Peters, Jörg; Vance, Colin; Harsdorff, Marek

doi:10.1016/j.worlddev.2010.09.015

Cited by 88 publications

(45 citation statements)

References 23 publications

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“…Qualitative evidence from the same study, however, points to a positive indirect effect of electrification by increasing local demand as people move to the area. Peters et al (2011) provide similar evidence in rural Benin. Electrification seems to have a positive effect on firm creation, but already existing micro manufacturers do not perform better following the connection to the grid.…”

Section: Literature Reviewsupporting

confidence: 66%

Electricity Access and the Performance of Micro and Small Enterprises: Evidence from West Africa

2013

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Although it is widely accepted that electricity access is important for enterprise performance, the empirical evidence on the subject is mixed. In addition, evidence is scarce for micro and small enterprises operating in the informal sector. On the basis of a representative sample of informal firms in seven West African cities, we do not find evidence of a systematic, significant contribution of electricity access to enterprise performance. However, concentrating on a more homogeneous sample of tailors in Ouagadougou, we find that electricity can potentially exert a positive influence on performance, with electricity contributing to the uptake of modern machinery and business operation. Our findings are another illustration of the heterogeneity of the informal sector, which needs to be taken into account when policy interventions intend to overcome the growth constraints of firms operating in this segment of the economy.S'il est largement reconnu que l'accès à l'électricité joue un rôle important dans la performance des entreprises, les données empiriques sur la question sont mitigées. Qui plus est, peu d'informations sont disponibles concernant les petites et micro-entreprises opérant dans le secteur informel. Nous constatons, à partir d'un échantillon représentatif d'entreprises informelles de sept villes d'Afrique occidentale, qu'il n'existe aucune donnée démontrant un effet positif systématique et significatif de l'accès à l'électricité sur la performance des entreprises. Cependant, en examinant de près un échantillon plus homogène de tailleurs travaillant à Ouagadougou, nous observons un effet positif de l'électricité, l'accès à cette dernière favorisant l'adoption de machines modernes et contribuant au fonctionnement des entreprises. Nos résultats offrent une nouvelle illustration de l'hétérogénéité du secteur informel, qui doit être prise en compte lors de l'élaboration de politiques publiques destinées à aider les entreprises opérant dans ce segment de l'économie à surmonter les obstacles à la croissance.

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Section: Literature Reviewsupporting

confidence: 66%

Electricity Access and the Performance of Micro and Small Enterprises: Evidence from West Africa

2013

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“…A nascent literature is trying to assess the impacts on business outcomes for firms, but it is still quite scarce and would require more effort from the academic community. Electricity access expansion has found to positively impact industrial growth through increases in production levels and in the number of industrial activities (Rud 2012;Peters et al 2011). Quality of electric supply has also been shown to have important impacts on revenues, productivity, investments (Allcott et al 2016;Fisher-Vanden et al 2012;Reinikka and Svensson, 2002).…”

Section: Discussionmentioning

confidence: 99%

Access to modern energy: a review of barriers, drivers and impacts

Bonan¹,

2017

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Universal access to modern energy services, in terms of access to electricity and to modern cooking facilities, has been recognized as a fundamental challenge for development. Despite strong praise for action and the deployment of large-scale electrification programs and improved cookstove (ICS) distribution campaigns, few studies have shed light on the barriers to, the enablers of and the impacts of access to energy on development outcomes, using rigorous methodologies. This paper reviews this recent strand of research, trying to fill these gaps. We focus on the demand-side and household perspective. Our main outcomes of interest are electricity connection and ICS adoption for the analysis of barriers, time allocation, labour market outcomes and welfare for the impact analysis. We provide evidence of significant wellbeing impacts of electrification, and mixed evidence for cookstoves.JEL classification: O1, O13, Q4, Q48

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“…In the absence of roads and market access, electricity can only be used for productive purposes that serve the local market. Profitability of these businesses is mostly low and so is accordingly the business demand for electricity (Chaplin et al 2017;Neelsen and Peters 2011;Peters et al 2011;Peters and Sievert 2016;Lenz et al 2017). In addition, income often fluctuates seasonally since in many parts of the developing world the incomes of rural populations depend heavily on agricultural production.…”

Section: Commercially Operated Mini Gridsmentioning

confidence: 99%