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  3. American Economic Journal: Applied Economics
  4. April 2013
  5. Development Effects of Electrification: Evidence from the Topographic Placement of Hydropower Plants in Brazil

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

  • Molly Lipscomb
  • A. Mushfiq Mobarak
  • Tania Barham
American Economic Journal: Applied Economics
vol. 5, no. 2, April 2013
(pp. 200-231)
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Abstract

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)

Citation

Lipscomb, Molly, A. Mushfiq Mobarak, and Tania Barham. 2013. "Development Effects of Electrification: Evidence from the Topographic Placement of Hydropower Plants in Brazil." American Economic Journal: Applied Economics, 5 (2): 200-231. DOI: 10.1257/app.5.2.200

Additional Materials

JEL Classification

  • H54 National Government Expenditures and Related Policies: Infrastructures; Other Public Investment and Capital Stock
  • L94 Electric Utilities
  • O11 Macroeconomic Analyses of Economic Development
  • O13 Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
  • Q41 Energy: Demand and Supply
  • Q43 Energy and the Macroeconomy
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