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

Molly Lipscomb | Zendy; Ahmed Mushfiq Mobarak | Zendy; Tania Barham | Zendy

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

Author(s) -

Molly Lipscomb,

Ahmed Mushfiq Mobarak,

Tania Barham

Publication year - 2013

Publication title -

american economic journal applied economics

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 12.996

H-Index - 82

eISSN - 1945-7782

pISSN - 1945-7790

DOI - 10.1257/app.5.2.200

Subject(s) - electrification , hydropower , electricity , economics , productivity , grid , sorting , econometrics , natural resource economics , economic geography , geography , macroeconomics , ecology , engineering , computer science , biology , geodesy , electrical engineering , programming language

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)

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