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Cited by 97Energy and Environment ImpactsEntrepreneurship Studies and InfluencesInnovation and Socioeconomic Development

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How does energy matter? Rural electrification, entrepreneurship, and community development in Kenya

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Vernet, Antoine, Khayesi, Jane N.O., George, Vivian, George, Gerard, Bahaj, Abubakar S.·2019·Energy Policy
DOI 10.1016/j.enpol.2018.11.012
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Abstract

We examine the impact of rural electrification on individuals and businesses within a community in order to test a resource-based theory of entrepreneurship. We show that access to electricity increases average households’ income and entrepreneurial activities. The impact of electricity on entrepreneurial activity has wide-ranging implications for development policy in countries where access to electricity is sparse. Results show a significant difference in entrepreneurial opportunities with respect to firm formation, with the electrified site reporting more new micro-enterprises (33) than the control site (20) after implementation. Electrification affects both households’ income, individuals’ perceptions of their social position, and opportunities for business development. Individuals’ future expectations and entrepreneurial activities are enhanced in the community that receives electricity. We also find evidence that women-led households benefit from electrification more than men-led ones, but this benefit does not eliminate the difference in income between women and men-led household. We discuss implications of the study for entrepreneurship and community social development interventions.

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Research works printed but not linked: 32

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Metadata

Authors
Vernet, A., Khayesi, J. N. O., George, V., George, G., & Bahaj, A. S.
Affiliations
  • University College London (GB)
  • University of Essex (GB)
  • Royal College of Art (GB)
  • Singapore Management University (SG)
  • University of Southampton (GB)
Corresponding author
George, Gerard
ORCID
Venue
Energy Policy
Publisher
Elsevier BV
Published
2019-03
Volume
126
Pages
88-98
ISSN
0301-4215 (ISSN-L)
DOI
10.1016/j.enpol.2018.11.012
OpenAlex
W2901504319
Cited by
97
References
0
Citations by year
2026: 9 · 2025: 12 · 2024: 17 · 2023: 17 · 2022: 15 · 2021: 14 · 2020: 8 · 2019: 5
FWCI
2.53
Type
journal article
Language
en
Open access
Licence
Locations
  • Energy Policy (publishedVersion, cc-by-nc-nd)
  • ePrints Soton (University of Southampton) (acceptedVersion)
  • Open Access at Essex (University of Essex) (acceptedVersion)
  • Singapore Management University Institutional Knowledge (InK) (Singapore Management University) (submittedVersion)
  • RePEc: Research Papers in Economics (submittedVersion)
  • UCL Discovery (University College London) (submittedVersion)
Funders
EPSRC (EP/G06394X/1)
Topics
  • Physical Sciences › Environmental Science › Pollution › Energy and Environment Impacts
  • Social Sciences › Business, Management and Accounting › Management of Technology and Innovation › Entrepreneurship Studies and Influences
  • Social Sciences › Business, Management and Accounting › Business and International Management › Innovation and Socioeconomic Development
Keywords
rural electrification, entrepreneurship, community development, resource-based view, household income, microenterprises, firm formation, gender differences, social status, development policy, Kenya

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