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Impacts of access to electricity on employment and household income growth in Cambodia

Year: 2025

Type: article

Abstract: This study examines the impacts of access to electricity on household welfare in terms of employment and income growth in Cambodia. To correct for the endogeneity of electricity, we introduce two instruments: (1) population density at village level; and (2) distance between the center of the village and the nearest electricity substation point. Results show a strong and positive effect of household access to electricity on the probability of participation in wage employment and self-employment in the nonfarm sector. Access to electricity contributes to total household income growth through the growth of household nonfarm income. Evidence shows that electrification has facilitated the shift of household livelihood away from self-employment on farms and to wage work in the nonfarm sector, which eventually served as the main driver of household income growth.

Source: The Philippine Review of Economics

DOI: 10.37907/3erp5202j

Authors: Asami Takeda, Jonna Estudillo

Institutions: Hokkaido University, University of the Philippines System

Language: English

Topic: Energy and Environment Impacts

Subfield: Pollution

Field: Environmental Science

Domain: Physical Sciences

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

Open Access status: bronze

Funders: Philippine Center for Economic Development, Japan Society for the Promotion of Science