Impact of Rural Electrification and Infrastructure on Agricultural Changes, 1966-1980

Impact of Rural Electrification and Infrastructure on Agricultural Changes, 1966-1980 Douglas F Barnes Hans P Binswanger Recently questions have been raised concerning whether the tremendous capital investments in rural electrification have had the desired impact on rural areas. This study empirically examines what agricultural impact electricity and other infrastructure improvements have had on 108 villages in three states. The conclusion is that rural electrification has had a direct impact on agricultural productivity through private investment in electric pumps. However, farmers also have made substantial investments in diesel pumps, although at a somewhat slower rate. Also, for villages first receiving electricity there is a substitution of electric pumps for diesel ones. Although rural electrification has had a significant impact on agriculture, there has been no explosive growth as was anticipated by many of the early planners.