Ruhr Economic Papers

Ruhr Economic Papers #189

Rural Electrification and Manufacturing Firm Performance in Benin – An Ex-Ante Impact Assessment

by Jörg Peters, Colin Vance and Marek Harsdorff

RWI, 06/2010, 35 S./p., 8 Euro, ISBN 978-3-86788-213-2



Productive electricity use is widely believed to contribute to positive impacts of electrification projects. This paper investigates these impacts by comparing the performance of micro manufacturing enterprises in grid-covered and non-covered villages in Northern Benin. Using firm-level data, the empirical analysis employs a Propensity Score Matching. While beneficial impacts are found from firm creation after electrification, firms that existed before actually show a non-significantly inferior performance to their matched counterparts from a non-electrified region. Complementary measures that sensitize firms about the implications of a grid connection are recommended as important features of program design.

JEL-Classification: C21, O14, O22, L69

Keywords: Impact evaluation; propensity score matching; productive electricity use

Published as:

Peters, J., C. Vance and M. Harsdorff (2011), Grid Extension in Rural Benin: Micro-Manufacturers and the Electrification Trap. World Development 39 (5): 773-783.