Makes sense! The cost of electrification, especially in remote areas, is probably far higher than the cost of improving electricity infrastructure. The description in the post also focuses (in my reading) on household electrification, while Fried and Lagakos focuses on the effects on firms, which likely have higher returns. Most people I’ve spoken to agree that the frontier is looking at benefits to the production side.
Yes, we also came to the conclusion that firm electrification > household electrification. My comment was meant as a gentle suggestion that perhaps electricity access is not the highest ROI margin. ;)
Makes sense! The cost of electrification, especially in remote areas, is probably far higher than the cost of improving electricity infrastructure. The description in the post also focuses (in my reading) on household electrification, while Fried and Lagakos focuses on the effects on firms, which likely have higher returns. Most people I’ve spoken to agree that the frontier is looking at benefits to the production side.
Yes, we also came to the conclusion that firm electrification > household electrification. My comment was meant as a gentle suggestion that perhaps electricity access is not the highest ROI margin. ;)