Despite a significant rollout of the electric grid, electricity usage among household and micro-enterprises in rural Rwanda remains low. This project seeks to answer if the benefits of on-grid electrification can be maximized by the availability of complementary inputs. Specifically, we study how tailored on-time grants for micro-enterprises and cooperatives can stimulate appliance investments, electricity usage intensity, and business performance. We partner with the Rwandan Ministry of Infrastructure to randomly assign the grants on the village level. The project will inform policy makers on how to increase the effectiveness of electrification interventions in Rwanda and in other countries. This research is funded by MIT’s King Climate Action initiative (K-CAI) and by the International Growth Center (IGC).
Location: Rwanda.
Funding: International Growth Center, Abdul Latif Jameel Poverty Action Lab
