Work

How does energy matter? Rural electrification, entrepreneurship, and community development in Kenya

Year: 2018

Type: article

Abstract: We examine the impact of rural electrification on individuals and businesses within a community in order to test a resource-based theory of entrepreneurship. We show that access to electricity increases average households’ income and entrepreneurial activities. The impact of electricity on entrepreneurial activity has wide-ranging implications for development policy in countries where access to electricity is sparse. Results show a significant difference in entrepreneurial opportunities with respect to firm formation, with the electrified site reporting more new micro-enterprises (33) than the control site (20) after implementation. Electrification affects both households’ income, individuals’ perceptions of their social position, and opportunities for business development. Individuals’ future expectations and entrepreneurial activities are enhanced in the community that receives electricity. We also find evidence that women-led households benefit from electrification more than men-led ones, but this benefit does not eliminate the difference in income between women and men-led household. We discuss implications of the study for entrepreneurship and community social development interventions.

Source: Energy Policy

DOI: 10.1016/j.enpol.2018.11.012

Authors: Antoine Vernet, Jane N.O. Khayesi, Vivian George, Gerard George, Abubakar S. Bahaj

Institutions: University College London, University of Essex, Royal College of Art, Singapore Management University, University of Southampton

Language: English

Topic: Energy and Environment Impacts

Subfield: Pollution

Field: Environmental Science

Domain: Physical Sciences

SDGs: No poverty, Decent work and economic growth, Industry, innovation and infrastructure, Reduced inequalities, Affordable and clean energy

Open Access status: hybrid

Estimated APC paid: $3,940