연구정보
[경제] Reliable Electricity Access, Micro-Small Enterprises, and Poverty Reduction in Indonesia
인도네시아 국외연구자료 연구보고서 - Taylor & Francis Online 발간일 : 2023-02-02 등록일 : 2023-05-21 원문링크
The government of Indonesia has launched subsidized electricity tariffs and a massive electrification campaign to improve the quality of life. However, whether these programs have increased access to energy for all and whether it reduces poverty is unclear. We empirically test the causal effects of electricity access on poverty reduction. We also investigate the potential role of micro-small enterprises (MSEs) as the transmission channel for poverty reduction. To isolate the endogeneity concerns, we use the instrumental variable (IV) approach. We exploit the village’s proximity to the nearest power plant in 1985 as the exogenous variation of the historical least-cost distance by the state-owned company (PLN) to instrument the endogenous nature of current time electricity access. Our results show that expanding reliable electricity services contribute significantly to poverty reduction. Nevertheless, we find no evidence that the MSEs’ development has an influential mediating role in the poverty reduction effects.
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