Economics of Informal Electricity Connections

Last registered on December 09, 2025

Pre-Trial

Trial Information

General Information

Title
Economics of Informal Electricity Connections
RCT ID
AEARCTR-0017344
Initial registration date
November 30, 2025

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
December 01, 2025, 11:41 AM EST

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Last updated
December 09, 2025, 1:04 PM EST

Last updated is the most recent time when changes to the trial's registration were published.

Locations

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Primary Investigator

Affiliation
University of Chicago

Other Primary Investigator(s)

PI Affiliation
University of Chicago

Additional Trial Information

Status
In development
Start date
2025-12-10
End date
2026-12-31
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
Informal markets for essential services and infrastructure are common in low- and middle-income countries, but whether the informal means of accessing essential services and infrastructure are welfare improving is unclear. We study the phenomenon of "informal electricity connections," where households purchase power from neighbors with utility access instead of directly from the utility. In our setting in Abomey-Calavi, Benin, informal electricity makes up almost half of all electricity connections. This project investigates the welfare and distributional consequences of informality in electricity access. With a partnership with the national utility, we randomize subsidies for the upfront and per-kWh cost for formal and informal sources of electricity for households in Abomey-Calavi, Benin. We plan to evaluate the effects of the randomized subsidies on uptake, electricity consumption, and prices in the informal market.
External Link(s)

Registration Citation

Citation
Kuloszewski, Zachary and Jun Wong. 2025. "Economics of Informal Electricity Connections." AEA RCT Registry. December 09. https://doi.org/10.1257/rct.17344-2.0
Experimental Details

Interventions

Intervention(s)
Intervention 1: Subsidy for the upfront cost of an indirect utility connection through a neighbor.
Intervention 2: Subsidy for the marginal price for electricity consumption among baseline indirectly-connected households.
Intervention 3: Subsidy for the marginal price for electricity consumption among baseline directly-connected households.
Intervention Start Date
2025-12-17
Intervention End Date
2026-10-31

Primary Outcomes

Primary Outcomes (end points)
The key outcome variables are:
1. Electricity connection status: Direct, indirect, none.
2. Electricity consumption (kWh per month)
3. Price in informal market (FCFA per kWh)
Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
Experiment 1: Among 1,200 households, we randomize 33% towards the high subsidy treatment arm, 33% towards the low subsidy treatment arm, and 33% to the control group.
Experiment 2: Among 1,250 households that are connected via their neighbors at baseline, we randomize 50% towards the subsidy arm, and 50% to the control group.
Experiment 3: Among 150 markets, we randomize 50% towards the subsidy arm and 50% to the control group. All baseline directly-connected households within a treated market will receive the subsidy.
Experimental Design Details
Not available
Randomization Method
Randomization done in office by a computer
Randomization Unit
Market level randomization (Experiment 3) and individual-level randomization (Experiments 1 + 2)
Was the treatment clustered?
Yes

Experiment Characteristics

Sample size: planned number of clusters
Experiment 1: 1,200 households
Experiment 2: 1,250 households
Experiment 3: 150 markets
Sample size: planned number of observations
Experiment 1: 1,200 households Experiment 2: 1,250 households Experiment 3: 2,400 households
Sample size (or number of clusters) by treatment arms
Experiment 1: 400 High Subsidy, 400 Low Subsidy, 400 Control
Experiment 2: 625 Consumption subsidy, 625 Control
Experiment 3: 75 Consumption subsidy, 75 Control
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
IRB

Institutional Review Boards (IRBs)

IRB Name
University of Chicago
IRB Approval Date
2025-06-30
IRB Approval Number
IRB25-0176