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The Welfare Impact of Rural Electrification: A Reassessment of the Costs and Benefits

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This report discusses the benefits of rural electrification and examines the argument that they may be insufficient to justify the investment costs. The report finds that the benefits can indeed be high, substantially outweighing the costs and that consumer willingness to pay is generally sufficient to achieve financial sustainability. However, benefits could be increased further by providing smart subsidies to assist connections for poorer households, promote productive uses, and further consumer education.