Does electricity reliability matter? Evidence from rural Viet Nam

Duc Anh Dang; Hai Anh La

doi:10.1016/j.enpol.2019.04.036

Does electricity reliability matter? Evidence from rural Viet Nam

Duc Anh Dang, Hai Anh La

Research output: Contribution to journal › Article › peer-review

42 Citations (Scopus)

Abstract

Using a three-round panel dataset of more than 3,000 households, the paper estimates the impacts of electricity reliability improvement on the welfare and economic decisions of rural Vietnamese households. The number of days without power outages in communes per annum is used to proxy for electricity reliability. We employ a fixed effect regression with an instrumental variable to deal with the endogeneity issue, led by the simultaneous causal relationship between the reliability of electricity and household outcomes along with the unobservable variables. We use the similar electricity quality variable but measured in other communes within the same province as an instrumental variable. Results from this model show that an improvement in electricity reliability plays an important role in enhancing incomes, durable consumption, access to credit and land investment decisions of rural households.

Original language	English
Pages (from-to)	399-409
Number of pages	11
Journal	Energy Policy
Volume	131
DOIs	https://doi.org/10.1016/j.enpol.2019.04.036
Publication status	Published - 1 Aug 2019

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title = "Does electricity reliability matter? Evidence from rural Viet Nam",

abstract = "Using a three-round panel dataset of more than 3,000 households, the paper estimates the impacts of electricity reliability improvement on the welfare and economic decisions of rural Vietnamese households. The number of days without power outages in communes per annum is used to proxy for electricity reliability. We employ a fixed effect regression with an instrumental variable to deal with the endogeneity issue, led by the simultaneous causal relationship between the reliability of electricity and household outcomes along with the unobservable variables. We use the similar electricity quality variable but measured in other communes within the same province as an instrumental variable. Results from this model show that an improvement in electricity reliability plays an important role in enhancing incomes, durable consumption, access to credit and land investment decisions of rural households.",

keywords = "Power reliability, Household welfare, Viet Nam",

author = "Dang, {Duc Anh} and La, {Hai Anh}",

note = "Funding Information: Our work was financially and technically supported by Economic Research Institute for ASEAN and East Asia (Grant No.: ERIA-RD/RE-001-001-721/09/FY2017 ). The views expressed in this paper are entirely the authors' and do not reflect those of their affiliated organisations. Publisher Copyright: {\textcopyright} 2019 Elsevier Ltd",

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AU - Dang, Duc Anh

AU - La, Hai Anh

N1 - Funding Information: Our work was financially and technically supported by Economic Research Institute for ASEAN and East Asia (Grant No.: ERIA-RD/RE-001-001-721/09/FY2017 ). The views expressed in this paper are entirely the authors' and do not reflect those of their affiliated organisations. Publisher Copyright: © 2019 Elsevier Ltd

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Y1 - 2019/8/1

N2 - Using a three-round panel dataset of more than 3,000 households, the paper estimates the impacts of electricity reliability improvement on the welfare and economic decisions of rural Vietnamese households. The number of days without power outages in communes per annum is used to proxy for electricity reliability. We employ a fixed effect regression with an instrumental variable to deal with the endogeneity issue, led by the simultaneous causal relationship between the reliability of electricity and household outcomes along with the unobservable variables. We use the similar electricity quality variable but measured in other communes within the same province as an instrumental variable. Results from this model show that an improvement in electricity reliability plays an important role in enhancing incomes, durable consumption, access to credit and land investment decisions of rural households.

AB - Using a three-round panel dataset of more than 3,000 households, the paper estimates the impacts of electricity reliability improvement on the welfare and economic decisions of rural Vietnamese households. The number of days without power outages in communes per annum is used to proxy for electricity reliability. We employ a fixed effect regression with an instrumental variable to deal with the endogeneity issue, led by the simultaneous causal relationship between the reliability of electricity and household outcomes along with the unobservable variables. We use the similar electricity quality variable but measured in other communes within the same province as an instrumental variable. Results from this model show that an improvement in electricity reliability plays an important role in enhancing incomes, durable consumption, access to credit and land investment decisions of rural households.

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KW - Viet Nam

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JO - Energy Policy

JF - Energy Policy

ER -

Does electricity reliability matter? Evidence from rural Viet Nam

Abstract

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