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An Analysis of the Socio-economic Impacts of Rural Electrification in Dumuria Upazilla, Khulna

Aparesh Mazumder
Economics Discipline, Khulna University, Khulna-9208, Bangladesh

Md. Mahmud Hasan Rubel
Officer, HSBC Bank, Dhaka, Bangladesh

Syed Afroz Keramat
Economics Discipline, Khulna University, Khulna-9208, Bangladesh

Abstract/ Executive Summary:

The study focuses on the impact of electricity on the income, physical condition and education of the rural area in Dumuria Upazilla of Khulna District which was carried out in 2008. The results are based on a study from a survey carried out in two electrified villages and another two non-electrified villages in Dumuria. Electrification is seen to make overall energy costs in the study area cheaper. The shift from kerosene to electricity for lighting alone results in a consumer’s surplus by increasing consumption of lighting 1010 hours annually, reduces fuel cost Tk. 632 per annum per household. Uses of domestic electrical appliances have improved the living conditions of the study area. Each household, after electrification, reduces carbon-dioxide emission. Electrification alone may not be enough for rural development as the regression analysis in the study shows that other socio-economic factors such as land holdings of the households, size of livestock’s are more significant than electricity. Electrified households were found to have a 10% higher annual cash income. Poverty is less prevalent in electrified villages. The probability that households engage themselves in income generating activities upon electrification is found to be low. Health in electrified villages appears to improve through better living conditions at home and through the use of electricity in hospitals. There are more students studying for longer duration, and higher enrollment in non formal education in the electrified villages. Overall, the human development is better in electrified villages as evidenced by their socio-economic and demographic variables.

Keywords: Electrification, rural development, socio-economic variables

Location: Rural area in Dumuria Upazilla of Khulna District

Start Date:

End Date:

Program Area: Socio-economic and Policy

Non-commodity: Impact

Objectives:

1. To make a general assessment of the economic and social impacts of rural electrification in the rural Bangladesh.

Methodology:

This research is exploratory in nature. It attempts to find out what is the socio-economic impact of rural electrification in Dumuria. Primary data from surveys and secondary data from government and non-government sources are used in this study. The villages and households without electricity serve as a control for the study. To meet the research objectives the required primary data is obtained by way of survey through: 1. Face to face structured interviews for electrified households and key informants in electrified villages 2. Face to face structured interviews for non-electrified households and key informants in non-electrified villages Sampling Framework To identify the study villages a sampling framework was prepared. A list of all the villages in Dumuria having electricity and those not having electricity were included in the framework. The information on the number of electrified households in different villages and the period of electrification (though not complete) was received from the agency responsible for electricity distribution and rural electrification. Determining the Sample Size - It is cost-ineffective and perhaps not necessary to take a survey for each household and community that benefit from rural electrification (Masse, 2003). The choice of the sample size like in other researches is determined by the interplay amongst the following important factors: a) The characteristics and size of the population b) The sampling frame c) Time, budgetary and logistic constraints The sampling unit in this research is a household defined as those family members sharing the same kitchen. In this study, because of the constraints mentioned earlier, the sample size is chosen as though a simple random sample is being obtained. The electrified households and the non-electrified households are considered to be two separate populations for the purpose of sampling. To account for non-response and missing data from some of the households, a total of 50 household in electrified villages and another 50 non-electrified households were surveyed. Econometric Analysis - Linear econometric models are used for interpreting the effect of electricity on income and other socio-economic factors. The SPSS software version 12 and Strata is used in analyzing the econometric models. In interpreting the results of the various regression analysis and the t-tests and z-tests, the reader may consider absolute t values and z values more than 2 to be significant in this study.

Source of Information: BANGLADESH RESEARCH PUBLICATIONS JOURNAL; ISSN: 1998-2003, Volume: 5, Issue: 4, Page: 329-336, July -August, 2011

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

Electrified households were found to have a 10% higher annual cash income. Poverty is less prevalent in electrified villages. The probability that households engage themselves in income generating activities upon electrification is found to be low. Health in electrified villages appears to improve through better living conditions at home and through the use of electricity in hospitals. There are more students studying for longer duration, and higher enrollment in non formal education in the electrified villages. Overall, the human development is better in electrified villages as evidenced by their socio-economic and demographic variables.

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