Social Interaction Effects and Connection to Electricity: Experimental Evidence from Rural Ethiopia Report as inadecuate




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Abstract

This paper assesses the importance of social interactions in determining an individual’s choice to connect to an electrical grid, using an original dataset on a new rural electrification program in Ethiopia. Combining GPS information with random allocation of discount vouchers for connection to the grid, we show that neighbors’ connection behaviors have large effects on a household’s connection decision. This effect is also shown to decrease by distance: no peer effect is found for neighbors living farther than 100 meters away. Evidence also suggests that expectation interactions through social learning of the benefits of electricity or constraint interactions through direct externalities of one’s connection on others’ wellbeing are unlikely to fully account for these effects, and that preference interactions through a ‘keeping up with neighbors’ type of mechanism appear to be a plausible explanation. We discuss implications for further research and the design of development interventions.



Item Type: MPRA Paper -

Original Title: Social Interaction Effects and Connection to Electricity: Experimental Evidence from Rural Ethiopia-

English Title: Social Interaction Effects and Connection to Electricity: Experimental Evidence from Rural Ethiopia-

Language: English-

Keywords: Ethiopia, Rural Electrification, Social Interactions-

Subjects: C - Mathematical and Quantitative Methods > C9 - Design of ExperimentsC - Mathematical and Quantitative Methods > C9 - Design of Experiments > C93 - Field ExperimentsO - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O12 - Microeconomic Analyses of Economic DevelopmentO - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O33 - Technological Change: Choices and Consequences ; Diffusion Processes-





Author: Bernard, Tanguy

Source: https://mpra.ub.uni-muenchen.de/61303/



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