Macroeconomics

Lighting Up Bihar: Electrification to Sustain Economic Growth

  • Blog Post Date 31 December, 2013
  • IGC Research on India
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Robin Burgess

London School of Economics

r.burgess@lse.ac.uk

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Anant Sudarshan

Energy Policy Institute at Chicago

anants@uchicago.edu

This project looks at incentivising consumers to pay for the electricity consumed by the area in Bihar. The intervention specifically links the duration of supply to the payment performance of a group against electricity supplied in the previous month. Through a randomised controlled experiment, the researchers measure that doing so improves payment behaviour and reduces the percentage of pilfered power consumption in Bihar. Also, an extension of this project was also undertaken which expands the study sample, at the request of the Bihar government, from a planned 4 districts to 8 districts (increasing the overall sample, while reducing the number of units sampled per district). 

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