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Trial End Date August 31, 2016 December 31, 2017
Last Published May 17, 2016 04:46 AM August 30, 2016 01:11 AM
Primary Outcomes (End Points) The following are the key outcome variables of interest in the first stage of the project: 1. Demand: Different levels of subsidies will create random variation in the effective prices faced by rural households. By comparing take-up rates at different prices, researchers will be able to trace out a demand curve for grid connections. 2. Costs: Different levels of subsidies will create random variation in the number of households applying for power at the same time. By connecting multiple households at the same time, utilities can experience significant economies of scale in transport, design, and low-voltage line costs. We will therefore estimate the effect of increasing scale (i.e. number of applications) on the average connection cost per household. The following are the key outcome variables of interest in the first stage of the project: 1. Demand: Different levels of subsidies will create random variation in the effective prices faced by rural households. By comparing take-up rates at different prices, researchers will be able to trace out a demand curve for grid connections. 2. Costs: Different levels of subsidies will create random variation in the number of households applying for power at the same time. By connecting multiple households at the same time, utilities can experience significant economies of scale in transport, design, and low-voltage line costs. We will therefore estimate the effect of increasing scale (i.e. number of applications) on the average connection cost per household. In the second stage of the project, we will examine the impacts of electrification on a range of outcomes, including energy consumption, household structure, productivity and wealth, consumption, health and wellbeing, education, social and political attitudes, and community outcomes.
Experimental Design (Public) The study will take place across 150 “transformer communities” in Western Kenya. Each transformer community is defined as the group of all households located within 600 meters of a central electricity distribution transformer. In Kenya, all households within 600 meters of a transformer are eligible to apply for an electricity connection. The study will enroll roughly 15 randomly selected unconnected households from each transformer community. The subject population will consist of roughly 2,550 unconnected households in total. The total sample of transformer communities will be randomly divided into treatment and control groups of equal size (75 treatment, 75 control). Each of the 75 treatment communities will be randomly assigned to one of three treatment arms (i.e. subsidy groups). Within each treatment community, all enrolled households will receive the same subsidy offer. After receiving the subsidy offer, treatment households will be given 8 weeks to accept the offer and deliver the required payment to REA. REA will then ensure that an electricity connection is delivered within a reasonable timeframe. Within each treatment community, connection applications will be grouped together, allowing REA to install multiple connections at the same time. The study will take place across 150 “transformer communities” in Western Kenya. Each transformer community is defined as the group of all households located within 600 meters of a central electricity distribution transformer. In Kenya, all households within 600 meters of a transformer are eligible to apply for an electricity connection. The study will enroll roughly 25 randomly selected households from each transformer community. The subject population will consist of roughly 4,000 unconnected households in total. The total sample of transformer communities will be randomly divided into treatment and control groups of equal size (75 treatment, 75 control). Each of the 75 treatment communities will be randomly assigned to one of three treatment arms (i.e. subsidy groups). Within each treatment community, all enrolled households will receive the same subsidy offer. After receiving the subsidy offer, treatment households will be given 8 weeks to accept the offer and deliver the required payment to REA. REA will then ensure that an electricity connection is delivered within a reasonable timeframe. Within each treatment community, connection applications will be grouped together, allowing REA to install multiple connections at the same time.
Planned Number of Observations 2,550 households 4,000 households
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