J. Michael Davis

"This assessment of the consequences of rural electrification in developing areas, covers projects in two Latin American countries. In one of these electricity is supplied by a cooperative, in the other by a state-owned company. The authors examine a wide range of variables and find that only living standard and occupational status had a consistent positive association with electricity use. The cooperative had little, if any, significance for its members, aside from its function as an energy supplier. Household electricity consumption levels were low, rarely exceeding 100 kilowatts per month and largely limited to use for lighting and ironing. Farm consumption was minimal. The authors discuss energy costs at the household level and look at alternative energy sources, such as privately operated diesel generators, for businesses and industries. Consideration is given to the relationship between electricity and infrastructure development. The study is unique in that it focuses on both social and economic impacts of rural electrification and examines policy implications from both social-benefits and economic-benefits approaches."

Financing distribution of electric energy to rural areas in developing countries is a relatively recent activity. The United States Agency for International Development (AID) was the first to loan funds for this purpose. In 1963 it authorized $400, 000 to establish an electric cooperative in Nicaragua. Since then 15 loans have been made by AID for establishing or expanding electric service in nonurban areas of nine countries in Latin America. In this book, the emphasis has been placed on identifying benefits and, within the time and resources available, developing social indicators to place beside economic measurements. The authors have attempted to write this report in as nontechnical a style as possible and to provide a full exposition of all variables and methods employed so as to make it accessible to a general audience.