Electricity access through village grids in rural Senegal – The role of micro-finance

Last registered on April 17, 2019

Pre-Trial

Trial Information

General Information

Title
Electricity access through village grids in rural Senegal – The role of micro-finance
RCT ID
AEARCTR-0004057
Initial registration date
March 26, 2019
Last updated
April 17, 2019, 8:15 PM EDT

Locations

Region

Primary Investigator

Affiliation
RWI - Leibniz-Institute for Economic Research

Other Primary Investigator(s)

PI Affiliation
World Bank
PI Affiliation
RWI - Leibniz-Institute for Economic Research

Additional Trial Information

Status
On going
Start date
2014-05-01
End date
2019-10-31
Secondary IDs
Abstract
The lack of access to electricity hampers economic development and for many years countries in Sub-Saharan Africa pursued an agenda of increasing electricity access in rural areas. However, the evidence on impacts of electrification is partly disappointing. Studies have recently shown that electrification does not automatically lead to economic development in the form of employment and enterprise creation. It is often argued that it is the absence of complementary services such as access to formal micro-credits that impedes higher and especially productive consumption. In cooperation with a Senegalese MFI we randomly promoted micro-finance products in villages that were electrified under the village grid program called Electrification Rurale au Sénégal (ERSEN). Hence, we investigate the role of micro-finance as an important complementary factor in already electrified communities.

Additionally, we investigate whether a hands-off microfinance intervention can increase financial inclusion in rural areas. In 2016 we agreed with the MFI on a procedure on how to approach treatment villages. Afterwards we purposely backed off from the intervention and let the MFI handle the implementation without monitoring their actions or intervening at any point. This approach significantly reduces the costs of the intervention and it could easily be replicated or scaled-up.
External Link(s)

Registration Citation

Citation
Peters, Jörg, Julian Rose and Michael Toman. 2019. "Electricity access through village grids in rural Senegal – The role of micro-finance." AEA RCT Registry. April 17. https://doi.org/10.1257/rct.4057-1.0
Former Citation
Peters, Jörg et al. 2019. "Electricity access through village grids in rural Senegal – The role of micro-finance." AEA RCT Registry. April 17. https://www.socialscienceregistry.org/trials/4057/history/45080
Experimental Details

Interventions

Intervention(s)
Intervention Start Date
2016-12-01
Intervention End Date
2017-03-31

Primary Outcomes

Primary Outcomes (end points)
We look at the following key outcomes:
- having a bank account on household level
- having a credit on household level
- having a bank account on enterprise level
- having a credit on enterprise level
- number of appliances for enterprises
- number of enterprises on village level
Primary Outcomes (explanation)

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
For this study, we partnered with a Senegalese micro-finance institution to actively promote micro-finance products. The financial products were promoted in villages that were electrified under the village grid program called Electrification Rurale au Sénégal (ERSEN). A subsample of 86 villages has been drawn out of this population to participate in this study. In a random subset of 44 villages U-IMCEC started to actively promote micro-finance products between December 2016 and March 2017.
Experimental Design Details
Randomization Method
Randomization was done on village level using a stratified re-randomization approach by a computer.
Randomization Unit
On village level.
Was the treatment clustered?
Yes

Experiment Characteristics

Sample size: planned number of clusters
86 villages.
Sample size: planned number of observations
1500 Households (we conduct a very short interview with 25 percent households in each village; additionally we conduct five more in-depth interviews) 600 Enterprises (we conduct short interviews with all enterprises on each village, additionally we conduct three more in-depth interviews)
Sample size (or number of clusters) by treatment arms
43 treatment villages, 43 control villages
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
IRB

Institutional Review Boards (IRBs)

IRB Name
IRB Approval Date
IRB Approval Number
Analysis Plan

Analysis Plan Documents

Pre-Analysis Plan

MD5: abc7b3991f1cd323777e2468d3acb72a

SHA1: 388f3500e5400f79487fa7ceca16808a2ceb5cd5

Uploaded At: March 26, 2019

Post-Trial

Post Trial Information

Study Withdrawal

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Intervention

Is the intervention completed?
No
Data Collection Complete
Data Publication

Data Publication

Is public data available?
No

Program Files

Program Files
Reports, Papers & Other Materials

Relevant Paper(s)

Reports & Other Materials