{"title":"Power plants improve local residents' wealth: A case study of Nigeria","authors":"Taiwo Akinyemi , Suhyun Jung","doi":"10.1016/j.eneco.2024.108131","DOIUrl":null,"url":null,"abstract":"<div><div>Electricity generated from power plants and associated economic activities can be a way to improve local livelihoods in many developing countries. However, the existing evidence on the impacts of power plants on nearby residents' wealth and their mechanisms is scant and mixed at best. We examine the impacts of power plants on nearby residents' asset-based wealth using six rounds of Nigeria Demographic and Health Surveys (NDHS) and comprehensive power plant operations data in Nigeria. We find that households within 10 km of operational power plants have gained higher asset-based wealth scores by 0.2–2.7 than those located 10–20 km away. These wealth increases are most pronounced for households near larger-capacity plants and those with members in manual labor and sales/services occupations, likely driven by heightened demand during both the construction and operational phases of power plants. Additionally, we find that the likelihood of electricity access increases with power plant operations. Our results highlight the potential role of increased economic opportunities and electricity access in driving wealth gains through power plant construction and operations and offer policy insights into aligning economic advancement initiatives with the national electricity development plan for Nigeria and other developing countries.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"142 ","pages":"Article 108131"},"PeriodicalIF":13.6000,"publicationDate":"2025-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Energy Economics","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0140988324008405","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
Electricity generated from power plants and associated economic activities can be a way to improve local livelihoods in many developing countries. However, the existing evidence on the impacts of power plants on nearby residents' wealth and their mechanisms is scant and mixed at best. We examine the impacts of power plants on nearby residents' asset-based wealth using six rounds of Nigeria Demographic and Health Surveys (NDHS) and comprehensive power plant operations data in Nigeria. We find that households within 10 km of operational power plants have gained higher asset-based wealth scores by 0.2–2.7 than those located 10–20 km away. These wealth increases are most pronounced for households near larger-capacity plants and those with members in manual labor and sales/services occupations, likely driven by heightened demand during both the construction and operational phases of power plants. Additionally, we find that the likelihood of electricity access increases with power plant operations. Our results highlight the potential role of increased economic opportunities and electricity access in driving wealth gains through power plant construction and operations and offer policy insights into aligning economic advancement initiatives with the national electricity development plan for Nigeria and other developing countries.
期刊介绍：
Energy Economics is a field journal that focuses on energy economics and energy finance. It covers various themes including the exploitation, conversion, and use of energy, markets for energy commodities and derivatives, regulation and taxation, forecasting, environment and climate, international trade, development, and monetary policy. The journal welcomes contributions that utilize diverse methods such as experiments, surveys, econometrics, decomposition, simulation models, equilibrium models, optimization models, and analytical models. It publishes a combination of papers employing different methods to explore a wide range of topics. The journal's replication policy encourages the submission of replication studies, wherein researchers reproduce and extend the key results of original studies while explaining any differences. Energy Economics is indexed and abstracted in several databases including Environmental Abstracts, Fuel and Energy Abstracts, Social Sciences Citation Index, GEOBASE, Social & Behavioral Sciences, Journal of Economic Literature, INSPEC, and more.
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